They sent me a copy of the lapse letter which was of course sent to my previous address. It seems to have come as a bit of a surprise to my insurer that people often change address after taking out a mortgage protection policy.
YesWas it a reducing balance policy?
NoIs there still a substantial balance on the mortgage?
Maybe, though I'm concerned that we've both had health issues over the 19 years (hasn't everybody?) and that may bump up the price considerably.If you paid a level premium on a reducing balance mortgage, you might get a cheaper quote elsewhere.
Yes, I probably should have notified them. But given that it was a mortgage protection policy, assigned to bank, wasn't it fairly obvious or extremely likely that there was going to be a change of address involved? Mortgage protection policies wouldn't generally be used for investment properties, would they? If they had written in the months after the policy took effect, then post would have been forwarded. But when they write to the old address 19 years later, post doesn't get forwarded.An interesting point. Would they have known that it was for your "new" house? You probably should have notified them that you had changed address.
Yes, I've asked them tonight what happened too. Funnily enough, they also bounced a direct debit for An Post tv licence last November, for reasons that were never quite explained, which has left me with a bit of an admin mess to sort out.You would have a right to complain to Danske as well for bouncing the payment.
Yes, I'm amazed at the speed at which they operated. I'm pretty sure the DD normally hits around 20th of the month, and the lapse letter is dated 10th March, so less than a month all in.The life company should have presented it a few times before writing to you.
May not be worth renewing but the point remains that there should be a robust process for the insurance company to contact the customer before lapsing a policy with just one letter out to a 19 year old address. If they were obliged by the regulator to send out at least annual statements showing premiums paid that would maintain some level of communication and up-to-date details with both parties and I imagine would greatly reduce these kind of problems
They sent me a copy of the lapse letter which was of course sent to my previous address. It seems to have come as a bit of a surprise to my insurer that people often change address after taking out a mortgage protection policy.
There are no specific rules in the Consumer Protection Code 2012 to cover this type of issue.Agree fully.
I wonder if there are any specific guidelines in the Consumer Protection Code?
Hi Rainyday
If it's a reducing balance policy and there isn't a substantial balance left on the mortgage, it may not be worth renewing.
So first of all, compare the level of cover to the amount of premium. You might be better off paying the "premium" against the balance on the mortgage.
Brendan
May not be worth renewing but the point remains that there should be a robust process for the insurance company to contact the customer before lapsing a policy with just one letter out to a 19 year old address. If they were obliged by the regulator to send out at least annual statements showing premiums paid that would maintain some level of communication and up-to-date details with both parties and I imagine would greatly reduce these kind of problems
Interesting - would be very interested in hearing more.Agree fully.
I wonder if there are any specific guidelines in the Consumer Protection Code?
Just thinking about this. If they had sent a lapse letter to your new address, you might raise issues about Data Protection. What if you did not live there, and a tenant opened the letter?
I suppose that they could write a letter along the lines of "Please get in touch with us." without saying what the actual business was.
Just thinking about this. If they had sent a lapse letter to your new address, you might raise issues about Data Protection. What if you did not live there, and a tenant opened the letter?
You or your wife would be the prime beneficiaries, not Danske.Given Danske's role in the debacle, and given that they are the prime beneficiary of the policy, and given the short time span of the mortgage, I'm sorely tempted to say to hell with them all. I'll have the mortgage cleared before Danske/Pepper notice and take any effective action.
You might just as easily say, what if you did not live in the old house anymore and a tenant opened the letter. Any data protection issues in that case are with the person who opened the letter, surely?
If someone changes his/her address it is simply common sense to notify bank/insurer/whoever of such a change. How else are they going to know?
Yes, it is my responsibility, but here's the thing - if the insurance company is selling a product that inherently involves changing address, do you think that there is a particular professional responsibility on them to manage that process? It shouldn't be a surprise to an insurance company to know that someone moves house shortly after buying this product. It shouldn't come as a surprise that moving house is a fairly disruptive event, and the consumer might forget.I know you are frustrated, but it is your responsibility to tell the insurance company that you moved home, it is not there's to ask all their customers if they are still living at the address that they gave.
They are now telling me that, as no post was returned to them, they had no way of knowing that I had moved - a very flawed assumption. At a minimum, they should have sent one of the letters by registered post, to verify that the person still lived at the address in question.I was always taught as child that post should be opened by the person it's addressed to and although, for example, my mum might open a letter for my dad, generally, if it's not addressed to you, you don't open it. And, more importantly, that post must be returned to sender if the person is not available.
Thanks for the clarification - I presume you meant to say positive equity, not negative.You or your wife would be the prime beneficiaries, not Danske.
If you die with the policy in force, the policy will clear the mortgage, so your wife will be mortgage free.
If you die without a policy, your wife will still owe what is left on the mortgage. As you must be in huge negative equity, Danske will not lose out.
Thanks for the clarification. They have now confirmed that they did send three letters, all to the 19 year old address, the address that was given BEFORE the mortgage product was taken out. They have also told me that they notified my broker. I've never heard of this broker and certainly never dealt with them. I can only assume that they had some agency for NIB at the time. Presumably, the broker didn't bother notifying Danske now.Life companies usually give 30 days grace for non payment of premiums. After that, they look for a declaration of health before going back on cover and usually for all the arrears to be paid.
Ask the insurance company how much correspondence they sent you. In my experience, they send a letter when the premium bounces, a warning letter that the policy will lapse and then another that the plan has lapsed.
Yes, I have a gripe with Danske all right, so I'll see what they say. I don't think PTSB share any blame, as the insurer never presented to PTSB for payment, as the policy had lapsed by then.My gripe would be with Danske bank for bouncing the direct debit and I would fight it on those grounds. Is there even anyone to talk to Danske bank these days? I'd also have a go at PTSB. If the DDM transferred across, why wasn't it paid?
Yes, it is my responsibility, but here's the thing - if the insurance company is selling a product that inherently involves changing address, do you think that there is a particular professional responsibility on them to manage that process? It shouldn't be a surprise to an insurance company to know that someone moves house shortly after buying this product. It shouldn't come as a surprise that moving house is a fairly disruptive event, and the consumer might forget.
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