Is this a threat!

pami

Hi,
I have just received a very disturbing letter from my Building Society. When we took out our mortgage about 4 years ago, we declined to take out accident, sickness and redundancy insurance. The letter asks us to review this decision in view of the current economic situation - fair enough - but goes on to say:
"..I would be grateful if you could complete the attached form to either give details of how you would pay your loan if you were unable tro work due to sickness, accident or redundancy or to arrange for me to call to provide an illustration for cover"
If I don't reply within two weeks, they will contact me again. I find the tone of the letter threatening. Does anyone know if I am obliged to complete this form? Could the Building Society call in the loan if I do not? BTW this is an Offset Mortgage for about 25% of the current value of the property and at the moment the balance in the Savings account is equal to the Mortgage balance. Any advice would be appreciated

Browntoa

I'd ignore it.......looks like they are trying to sell the cover

or write over the form COVER NOT REQUIRED DO NOT CONTACT ME AGAIN and send it back in their Post paid envelope if there is one

opinions4u

pami wrote: »

Hi,
I have just received a very disturbing letter from my Building Society. When we took out our mortgage about 4 years ago, we declined to take out accident, sickness and redundancy insurance. The letter asks us to review this decision in view of the current economic situation - fair enough - but goes on to say:
"..I would be grateful if you could complete the attached form to either give details of how you would pay your loan if you were unable tro work due to sickness, accident or redundancy or to arrange for me to call to provide an illustration for cover"
If I don't reply within two weeks, they will contact me again. I find the tone of the letter threatening. Does anyone know if I am obliged to complete this form? Could the Building Society call in the loan if I do not? BTW this is an Offset Mortgage for about 25% of the current value of the property and at the moment the balance in the Savings account is equal to the Mortgage balance. Any advice would be appreciated

Sounds like the local branch trying to hit their sales targets.

You are not obliged to reply.

They cannot call in the loan as long as you are up to date with the payments.

I would write and complain though. If you feel menaced by a fairly poor marketing effort get in in writing, ask for compensation (£25ish) and demand that you are removed from all their marketing.

Jockthearab

Got to agree with the above posters, especially in light of the fact you have enough savings to cover the outstanding mortgage anyway!

Oh and welcome to MSE Pami

JtA

dunstonh

Does it look like a centrally posted marketing letter or is it from the local branch?

Reason I ask is that the wording doesnt sound like something that a compliance department would authorise for marketing at it is effectively an attempt to obtain info with a view to marketing.

jackomdj

Personally I would write & say something along the lines of .... if you bothered to look you would see I have the value of my mortgage sat in my savings pot .... it does sound as if they are simply trying to hit their sales targets.

pami

Thanks everyone for your replies and support. Dunstanh - The letter is from a Branch Manager, not from Head Office. The BS is not local to me, and I usually deal with the H.O. when withdrawing/depositing funds. I am now wavering between just ignoring it or sending a copy of the letter with a few terse comments to the Head Office. I would hate to think that someone would be bulldozed into taking expensive cover because of this kind of letter.

opinions4u

pami wrote: »

I am now wavering between just ignoring it or sending a copy of the letter with a few terse comments to the Head Office. I would hate to think that someone would be bulldozed into taking expensive cover because of this kind of letter.

For the benefit of other customers, please send your letter. The danger of local initiatives like this is that it gets replicated by neighbouring branches and will only stop when a central complaints department gets wind of what's going on.

Robert_Sterling

Just send them a polite nort saying that you do not require any insurance.

Gorgeous_George

The OP clearly does not want insurance but the local branch were not to know that. Your offset savings could be withdrawn in the event of redundancy, death etc., and some cover may have been worthwhile.

The letter will have been sent to many others in a less fortunate position. I don't expect my bank to check everybody's finances before sending such flyers.

I'd just put it in the bin.

GG

dunstonh

pami wrote: »

Thanks everyone for your replies and support. Dunstanh - The letter is from a Branch Manager, not from Head Office. The BS is not local to me, and I usually deal with the H.O. when withdrawing/depositing funds. I am now wavering between just ignoring it or sending a copy of the letter with a few terse comments to the Head Office. I would hate to think that someone would be bulldozed into taking expensive cover because of this kind of letter.

As a few of us have guessed, its almost certainly a marketing attempt and I reckon it is probably non compliant as you are not allowed to make communications (post, phone, email etc) which lead to marketing of a regulated financial services product or service by using a false pretence. I say false pretence as most banks and building societies are tied to one insurer (or limited panel) and are not authorised to give advice on products they themselves are not authorised to sell. So, how can they review products they havent got on offer themselves? In reality they are look for those that havent got any or where they have, getting hold of the price to see if theirs is cheaper.

Marketing letters normally get signed off by compliance departments to make sure there are no rule breaches. This one sounds like a branch trying something off their own back to help hit targets.

Whilst a complaint would not yield anything for you, it would make the lender aware of non-compliant activity that they can put a stop to and if necessary, give a slapped wrist.