bank loan payment insurance question?
BUT asked:
i took out a loan five years ago which ends next month. it was with lloyds for 5000 over 5 years.
they told me that i could’nt have the loan unless i tool out the payment insurance. even though i explained to them that the nature of my work with a construction agency, meant that if i lost my job or i was sick for any length of time the insurance wouldnt pay out any way.
so 5 years on and i’ve got one payment left. i’ve never missed a payment and am still with the same firm. the insurance cost me just over £1100. i can’t help thinking that i was bullied into getting the insurance even though i tried to tell them i didnt want it.
i took out a loan five years ago which ends next month. it was with lloyds for 5000 over 5 years.
they told me that i could’nt have the loan unless i tool out the payment insurance. even though i explained to them that the nature of my work with a construction agency, meant that if i lost my job or i was sick for any length of time the insurance wouldnt pay out any way.
so 5 years on and i’ve got one payment left. i’ve never missed a payment and am still with the same firm. the insurance cost me just over £1100. i can’t help thinking that i was bullied into getting the insurance even though i tried to tell them i didnt want it.
It wasn’t true that you had to take the insurance to get the loan - no bank is or was allowed to do that.
Speak to the citizen’s advice bureau, but it’s unlikely much can be done now unless you can prove they said this. You’ve received the benefit of the insurance for the past 5 years so you won’t get a refund I’m afraid.
I’m sure they have every right to require insurance on the loan. You could have tried going through another lender or something if you didn’t want to pay for the insurance. I’m not sure how it works with loans like yours, but in mortgages some loans are required to have insurance. For instance, first time home buyers, applying for an FHA loan are required to purchase mortgage insurance. I work as a mortgage underwriter.
Hi your first port of call is to write to the company to complain that you feel you were miss sold this insurance. The ombisman has made banks etc compensate for miss selling in the uk. go to them if you have no joy after your complaint
You certainly can complain as the loan was taken out within the last 6 years and isn’t time-barred. It doesn’t matter that the loan is close to being, or has been, paid-off.
Condition-selling has been outlawed since 1943 and again in 1998 and 2007. Banks cannot insist that you take out their insurance in order to qualify for a loan. In some cases, usually mortgage lenders, can insist that you have some insurance but they can’t dictate where you buy it from. Personal loans do not require compulsaory insurance in the UK.
You would appear to have a much stronger case in that you were probably classed as self-employed, and you will be able to prove that through tax returns, you would not have been eligible for cover anyway.
You can try to reclaim the PPI premiums and interest. Don’t get a company involved to do it for you - it’s easy to do yourself. The best site with letter templates and a step-by-step guide is at the moneysavingexpert site. They explain how to complain to the bank and then the Financial Ombudsman Services if the bank denies the claim.
Good luck.