£5,000 for insurance we won't use -PLEASE HELP

helennick

In September we took out a loan for £30,000 from Picture loans, on top of this was just under £6,000 to cover sickness/illness etc with half being returned after 5 years as long as no claim is made. Our circumstances have changed and after only 2 months we asked for a settlement figure, expecting it to be around £32,000-£33,000, we did not think we would be charged the sickness cover but expected to pay costs because of early settlement. Imagine our shock this morning when a letter arrived with a settlement figure of just under £37,000. My husband rang them and their answer was that this was indeed the correct figure and that they had to cover costs!! The breakdown in the letter was:
Early settlement Interest: £1,379.66
Accrued Interest: £217.42
Redemption Fee: £175.00
Less Insurance rebate - £921.69 (this means we will pay £5,000 for an insurance we won't use) :mad:
Can anyone offer any advise here

sambessey

This may not be helpful but would you be better off just sticking the cash in a range of ISAs/ high interest savings accounts? You won't make money but it might be cheaper than early settlement...

Rafter

sambessey is right but you should log a complaint as well.

This is a 'single premium' insurance policy which will hopefully be outlawed as a result of the review currently underway by the office of fair trading.

Why not counter offer them. Say you are happy to pay £500 to cover their costs but if they want anymore that you will pursue them through every avenue possible including the press until the OFT rule such contracts unlawful and then you would get a full refund!

R.

jonesMUFCforever

Who sent it to you.
If it is a spammer off here bin it.