What is the best way to cancel insurance charges on a bank loan?
Bank is refusing to cancel insurance on long term loan as the benefits of policy no longer apply to customer
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August 25th, 2010 at 12:16 am
go to the C.A.B and ask where you stand legally.
August 25th, 2010 at 12:37 am
Complain to the financial services ombudsman.
August 25th, 2010 at 1:25 am
What is so wrong with insuring loans this really winds me up. Has anyone ever spoken to anyone who has benefitted from loan insurance. I have and it was a great weight of their mind knowing that whilst having treatment their loan was being paid.
August 25th, 2010 at 1:31 am
There is insufficient information to determine whether a refund is due. What does the policy say about refunds? Has a claim been made?
For example; if the policy was for a fixed term of five years providing up to 12 months accident, sickness & unemployment benefit & a claim has been submitted & paid within that period then the insurance has done what you bought it to do – even if the claim was near the beginning of the term. It provided the cover that the premium was paid for, so there would probably not be any refund due.
In most cases loan payment protection insurance is a single premium policy. The bank lends you the money to cover the premium for the entire term & this is sent to the insurance company up front. Your loan therefore is made up of the amount you borrowed plus the amount that was sent to the insurance company.
This means that you can’t just cancel the insurance. You would need to arrange a new loan without insurance.
The fact that a claim was paid does not necessarily mean that the policy was not mis-sold. However, in most cases a successful mis-sale complaint will result in the policy being cancelled from the beginning & the premium refunded. As the policy is then cancelled from the beginning it is as if it never existed & you are not entitled to any benefit, so if the amount paid under a claim is more than the amount paid in premium then it is probably not worth persuing (as you would have to pay back the claim payment to get the premium refund). It would, in any event, depend on what actually happened at the point of sale.
A straight forward request to cancel the insurance and refund the premium (or part of) should go to the insurance company who received the premium, not the bank who sold the policy.
December 2nd, 2011 at 2:23 pm
WOW they are such beautiful photos Anel