writing off loan.

bangerack

Hi I would like some advise please.
My wife has a personal bank loan. (natwest)
She had a stroke 2 years ago and has resently had a second one.
Her loan insurance is paying off the loan at the moment.
We have to get the insurance form signed and sent off each month, by her doctor to say she is not able to work. She is on disability benefit.
Is it possible to get the loan written off as it looks like she will never work again at the moment.
It is being paid off at the moment by the insurance but it is still a worry that my wife and i could do without if possible.
What do you think?
Thanks.
Mark.

diable

You need to speak to NatWest and for them to agree if the loan can be written off, depending on the amount of the loan they may ask an independent doctor to look over your case.

Hax

Hi Mark

Sorry to hear about your wife's poor health.

With regard to the loan, I wouldn't have thought you could get it written off as the bank has loaned the money and will want it back. Also, you do have insurance for it and they are paying out so there's no reason for the bank to write off the money they have loaned.

However, I guess that it may be worthwhile talking to the insurance provider and see if they are willing to settle the loan with the bank, if you can provide medical evidence that your wife will be unable to ever work again. I've no idea if they would even entertain this idea but it's got to be worth a 'phone call.

Please note that I have no experience with this - just going off the logical way my mind works through these sort of things - and I can't see why the bank would want to write it off - it's not really in their interest.

Hopefully someone more knowledgeable than I will be along later!

opinions4u

There's no reason for the bank to write it off - yet. The insurer is meeting their liability.

This is a question for the insurer. At the moment they have an ongoing administrative cost in managing these payments and doctor's certificates etc. First thing I'd check is does the policy actually have critical illness cover built in to it? Some do, some don't, but if it does I'd expect this condition to be covered and the insurer to be in a position to pay out in full.

If not, could your doctor make a statement next time he signs their form that states "there is no likelihood of this condition improving and I would suggest that the need for a monthly confirmation of health is now unneccessary".

The insurer could choose to ignore it, or may get their own doctor to verify your condition. If the latter happens and the condition is considered irreversible then the insurer may find it to their benefit to settle in full because as it stands they are paying your wife's interest. I've never known this to happen though - insurers often have to stick to the letter of the policy because they have reinsured much of their risk elsewhere.

How long is left and the loan, and how long does the policy pay out for? If there insurance stops before the loan finishes then you may want to make a proposal to Nat West 3 or 4 months ahead of the insurance ceasing.

While it may be a nuisance, personally I'd just play along with the insurance company's game. Unless the situation is in dispute, it's nothing to be stressed about.

bengalknights

Is it PPI insurance as that would generally cover the loan amount so there would usually be no need for it to be written off by then bank.

Apples2

It may be worth reading the small print.

I have seen a few posts on here where the PPI has only covered repayments for up to 12 Months, after the 12th Month the payments stop.

bangerack

Hi all. Thanks for your help.
Yes its PPI Insurance and its for the life of the loan.
3 years still to go on loan.

jonesMUFCforever

I think Apples2 meant that payments MAY stop after 12 months even if you took cover for the whole timeframe.

You need to read the policy - if repayments stop and she cannot afford the repayments then her credit rating will be badly effected - in this case it might not be a problem if she never wants new credit again.
Some policies MAY pay out if the illness is severe enough (this is why it is important you read the small print) to clear the loan.