Insurance Policies - not cancelled - compensation? Years worth

AllyS

Hi all

We have a huge loan with Natwest, so have 2 life insurance policies with them. 1 a normal life insurance and another one for the loan that we was told that we had to have because it was unsecured (we don't own our home). Last year we re-did the insurances & loan (reduced the years we were doing it over and increased payments) and it seems that they have not cancelled the last 2 insurance policies we had with them. So they have been taking out 4 payments per month.

I am calling them tomorrow to get to the bottom of what is the correct policies and which should have been cancelled. What I want to know is, is it worth calling our personal banker and asking for our money back, is it something that they should have cancelled? It is over a year, so about £400 we have spent out on unnecessary payments. It would be great if we knew some rights before calling them.

Thanks

dacouch

It might be worth also posting on the "Reclaim PPI & Insurance" Forum on MSE as well.

I don't think the banks are allowed to make you take life insurance out with them as a requirement of giving you a normal loan so the people in that forum may be able to help you there.

P.S If you shop around for the life insurance you will probably find a massive saving as buying financial products from banks is normally the most expensive option possible

AllyS

dacouch wrote: »

It might be worth also posting on the "Reclaim PPI & Insurance" Forum on MSE as well.

I don't think the banks are allowed to make you take life insurance out with them as a requirement of giving you a normal loan so the people in that forum may be able to help you there.

P.S If you shop around for the life insurance you will probably find a massive saving as buying financial products from banks is normally the most expensive option possible

Thanks posted on their too.

AllyS

Thanks all for your help.

Just thought I would post the result. Spoke to them this morning and they have accepted the fault on the insurance and are refunding the extra payments. They said that bank are at fault (although not insurance dept) and that the insurances are clearly duplicates of what we have now (the 2 representatives from the bank should have cancelled the DD), altho we now have higher insurances. The money will be in the bank in 5 days.

dacouch

When everything has settled down have a look round as you should be able to get the cover for a much cheaper price than the bank are charging you. They cannot insist you have their life cover. You should save yourself a tidy sum each month which over the term of the loan will add up to a nice sume

AllyS

dacouch wrote: »

When everything has settled down have a look round as you should be able to get the cover for a much cheaper price than the bank are charging you. They cannot insist you have their life cover. You should save yourself a tidy sum each month which over the term of the loan will add up to a nice sume

I did look into it when all this happened, was going to cancel if they didn't pay the money back, but it was only 50p cheaper elsewhere - thanks tho

dacouch

Thats unusual with a bank...did you try an Independent Financial Adviser as they are normally the best bet