Insurance On A Loan - Advice Needed!!!

paulnoise

I have just realised that I am paying Northern Rock £344.02 a month of which only £229.35 is my loan repayment and the rest is insurance on the loan.

That means a whopping £114.67 a month of my loan per month is going on insurance. I was never informed of this until now and I feel a little angry to say the least that this is the case as I was never informed of this when I took out my loan with Northern Rock. It feels extortionate.

The company that holds the insurance is Pinnacle Insurance.

Does anyone have any advice on what to do next? I have emailed the FSA and am awaiting a response and am now going to take this further.

Paul.

overlander

This is simple to resolve, ask for their copy of the signed agreement. If you signed an agreement which has loan protection included then your to blame for not reading the agreement. But if it is not on the form you should be refunded your money plus interest.

marshallka

paulnoise wrote: »

I have just realised that I am paying Northern Rock £344.02 a month of which only £229.35 is my loan repayment and the rest is insurance on the loan.

That means a whopping £114.67 a month of my loan per month is going on insurance. I was never informed of this until now and I feel a little angry to say the least that this is the case as I was never informed of this when I took out my loan with Northern Rock. It feels extortionate.

The company that holds the insurance is Pinnacle Insurance.

Does anyone have any advice on what to do next? I have emailed the FSA and am awaiting a response and am now going to take this further.

Paul.

Go to the PPI thread at the top of the loans. You will get lots of advice on how to make a claim for misselling if it was missold to you. THe FSA cannot do anything for you personally but you can perhaps go to the FOS if it is within their jurisdiction. When was the loan taken out and also was this insurance a front loaded single premium policy.

Like i said, go the ppi reclaiming discussion and let people help you from there.

marshallka

overlander wrote: »

This is simple to resolve, ask for their copy of the signed agreement. If you signed an agreement which has loan protection included then your to blame for not reading the agreement. But if it is not on the form you should be refunded your money plus interest.

So i presume everyone making claims on the PPI reclaiming discussion thread has not read their agreement????

It could of been missold if it was a condition of the loan or sold as a single premium policy (which are now being looked at as being banned) which means that it costs a lot more (interest upon interest) than being offered a policy from elsewhere.