Not upheld: PPI mis-selling complaint against Marsden Building Society

Decision detail

Summary

Mr C complained that Marsden Building Society mis-sold him an MPPI policy taken out with a mortgage in 1999. Mr C claimed he was unaware that MPPI was a condition of the mortgage and that he would have increased his deposit to avoid it. The ombudsman found that Marsden's mortgage offer acceptance form clearly listed MPPI as a required condition, which was sent to Mr C and his solicitor for signature. The ombudsman concluded that the premium was competitive, affordable, and would have provided valuable additional cover. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Marsden made Mr C aware of the MPPI requirement through the mortgage offer acceptance form, which clearly listed it as a condition. Although the cost explanation could have been better, the premium was competitive and affordable. The policy would have provided additional cover on top of Mr C's sick pay. The ombudsman concluded that even with clearer cost disclosure, Mr C would likely have purchased the policy given his significant financial commitment. The policy exclusions were unlikely to have affected Mr C based on the terms reviewed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website