Mortgage miss-sell, insurance and completion certificate

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Sally.k
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by Sally.k » Thu Jul 05, 2018 6:18 am
Hi Ryan,
I have been advised to ask your opinion on the following matter. Me and my husband finished paying our IVA in May. Our debts were about £48000 And over 7 years we nearly paid £40000. Now we are waiting for the completion certificate however our IVA company is delaying it as they are investigating mis-sell of our mortgage. Not sure how long it will all take. Last month I have been diagnosed with breast cancer. We have "small" critical illness cover which is decreasing every year. Now, maybe worth £25000-£35000. Not sure the exact value at the moment. My question is: do I need to let my insurer know immediately that I have cancer? And do I have to claim immediately? If yes, how much of that money IVA will keep? Would they ask for all or just the amount of money which were missing to pay off all the debts (another £8000)? What about interests? They were frozen during IVA but could they ask for all that money to pay the frozen interests? I thought we paid them a lot, especially that we entered IVA tempted by the adverts saying up to 90% debts can be written off and ended up paying back nearly all (minus interests). I would be tempted to wait with my claim till I have the completion certificate, but I'm worry I will have to let the insurance know asap and they will tell me if I don't proceed with the claim, they will have to change my policy conditions, premiums etc. And at the end I won't get anything...
Regards,
Sally
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Foggy
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by Foggy » Thu Jul 05, 2018 6:32 am
Hi Sally. Not Ryan, but here are my thoughts:
I cannot guess what the insurance company conditions regarding claim timelines are and I would imagine it will be in the paperwork somewhere (small print!). You would need to check with them.
If your IP were to take the insurance money (not all would from a critical illness claim), they would take whatever was needed to make the payments you have made into the IVA cover the full original debt (so £8000) then fees (around £10000). They could also ask for statutory interest at 8% per annum (£3800 per year).
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Sally.k
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by Sally.k » Thu Jul 05, 2018 7:03 am
Hi Foggy
Thank you for your quick reply. Just a quick question: the £3800 interest per annum you have quoted, would they take it just for 1 year or for each year we have been in IVA (x 7 years)?
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Ryan
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by Ryan » Thu Jul 05, 2018 7:25 am
Hi Sally,

I think Foggy has covered everything to be honest. As he says best to contact the Insurer and initially just make a general enquiry regarding their pay out conditions re critical illness cover.

All the best.

Regards
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Lisa Thomas
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by Lisa Thomas » Thu Jul 05, 2018 9:36 am
Sally.k wrote:
Hi Foggy
Thank you for your quick reply. Just a quick question: the £3800 interest per annum you have quoted, would they take it just for 1 year or for each year we have been in IVA (x 7 years)?


For every year I'm afraid - assuming interest applies to your IVA. You could ask creditors to waive their rights to it.
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NTF Financial Solutions
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by NTF Financial Solutions » Thu Jul 05, 2018 4:18 pm
Hi Sally

We believe that you may be one of our clients. Please call in and discuss your concerns, as we may be able to go to creditors to get your IVA completed and allow you to keep all the funds you need going forward.
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luluj
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by luluj » Thu Jul 05, 2018 7:49 pm
Hoping you can get the answers to the questions ...and you get to keep the money!
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Ryan
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by Ryan » Fri Jul 06, 2018 11:46 am
Sounding positive, fingers crossed for you.

Regards
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