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Can we reclaim building/contents insurance
catmansam
Posts: 10 Forumite
In 1988 my partner took out a mortgage with Barclays Bank and the deal included a requirement to take out building/contents insurance with the bank.
In 1996 she sold the property when we jointly purchased a new house and her mortgage was paid off. We took out a joint mortgage with another provider and took out seperate building and contents insurance on the new property again with another provider.
I have recently found that the direct debit that Barclays set up to pay for the insurance on her first property was not stoppped when the original mortgage was paid off and the house sold. I am not sure whether this is her fault for not cancelling the direct debit or whether the bank should have stopped it (as it was linked to the mortgage/property)
My question is does she have any chance oif claiming back these payments (they go back to 1996 and could amount to £4,000) and if so what is the procedure - are there any standard letters/forms she needs to use.
In 1996 she sold the property when we jointly purchased a new house and her mortgage was paid off. We took out a joint mortgage with another provider and took out seperate building and contents insurance on the new property again with another provider.
I have recently found that the direct debit that Barclays set up to pay for the insurance on her first property was not stoppped when the original mortgage was paid off and the house sold. I am not sure whether this is her fault for not cancelling the direct debit or whether the bank should have stopped it (as it was linked to the mortgage/property)
My question is does she have any chance oif claiming back these payments (they go back to 1996 and could amount to £4,000) and if so what is the procedure - are there any standard letters/forms she needs to use.
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Comments
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she can ask, but to be honest - it was her mistake not cancelling the Direct Debit.We've spent decades teaching people about their rights, but nothing about their responsibilities.0
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She primarily needed to have cancelled the insurance policy, not necessarily the direct debit (although that would have been wise to do also).
Most property insurance policies are auto-renews - that is to say, they will continue renewing themselves each year until you physically stop them.
However, she would have had a notification annually, just prior to the time of renewal, telling her of her new rate of premium and giving her chance to opt out. However, if you moved house and did not notify the insurance division of Barclays of your new address, then she probably will not have received them.
Did she not notice the DDs going out of her account all those years?
I don't think you have much chance of claiming the money back - it certainly doesn't fall into the category of PPI and the insurance division will have deemed itself to have been at risk all the time the premiums were being paid even though no claims were made.
You might have a chance if you point out to them that they were not at risk. Had a claim been made on the property, then it would not have been valid under the Barclays insurance because the claim would not have been for property belonging to her.
Alternatively, you might explore the possibility that the insurance policy was unlawful in the first place if it was a condition of the mortgage that the insurer had to be Barclays themselves. At some point, many years ago, this was outlawed but it might have come into effect after your mortgage was started - and to cover the same point - Barclays might have only insisted that the property was insured, obviously offering a quote from their own company but not necessarily stopping you seeking the service elsewhere.0 -
I am not sure whether this is her fault for not cancelling the direct debit
it is.
yes she does. Possibly not all of them given the timescale but a good chunk.My question is does she have any chance oif claiming back these payments
She needs to contact Barclays insurance and tell them that she has been dual insured on the home insurance since 1996. She needs to include details of all the policies had since then (who with, dates and policy numbers).
Barclays will liase with those providers and they will agree a refund process. Giving that many companies will only hold 6 years data, she may only be able to get 6 years worth. Plus, she will possibly face difficulty in obtaining policy details if she has not held on to copies.Alternatively, you might explore the possibility that the insurance policy was unlawful in the first place if it was a condition of the mortgage that the insurer had to be Barclays themselves.
In 1988 lenders were allowed to insist on their own insurance. That rule didnt change to very many years later. From memory it was mid 90s. Also, it is pre-regulation of insurance. So, no rules as such were broken as no rules existed specifically to insurance.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Did she not notice the DDs going out of her account all those years?
No she did not - don't ask but the simple answer is that she forgot about the account the DD was coming from and it has been dormant for 15 years (there has been enough funds in it to allow the DD to carry on). Becasue she did not remember having the account, she did not tell the bank about the change of address, hence no statements to jog her memory
Anyway, its cost her approx £4k over 15years, so learnt her lesson.0 -
She needs to contact Barclays insurance and tell them that she has been dual insured on the home insurance since 1996. She needs to include details of all the policies had since then (who with, dates and policy numbers).
The problem is that since selling the property, she has been living with me and all the insurance is in my name, so she cannot prove dual cover. The current property is in both our names, it's just that I pay all the bills.
Anyway, thanks for the advice, I will try Barclays Insurance to see what they say
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She needs to contact Barclays insurance and tell them that she has been dual insured on the home insurance since 1996. She needs to include details of all the policies had since then (who with, dates and policy numbers).
I have just spoken to Barclays Insurance and have had my faith in banks restored. No problem in getting a refund, they just need to see the solicitors document regarding the sale (which we still have) and then they will refund. Warned that they might only be able to go back 11 years as they have records for back to 2005 and have access to another database going back from then until 2000, but 11 years is better than nothing.
dunstonh - many thanks for the information, looks like we might get a result. 0 -
The sale of the property would work as she no longer has an insurable interest at that point. So, a refund until then makes sense.
Data limitation due to time was always likely to be an issue but its still better than nothing. So, good news by the looks of it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
No she did not - don't ask but the simple answer is that she forgot about the account the DD was coming from and it has been dormant for 15 years (there has been enough funds in it to allow the DD to carry on). Becasue she did not remember having the account, she did not tell the bank about the change of address, hence no statements to jog her memory
Anyway, its cost her approx £4k over 15years, so learnt her lesson.
i'd love to have a dormant account with over 4 k in it!We've spent decades teaching people about their rights, but nothing about their responsibilities.0 -
No she did not - don't ask but the simple answer is that she forgot about the account the DD was coming from and it has been dormant for 15 years (there has been enough funds in it to allow the DD to carry on). Becasue she did not remember having the account, she did not tell the bank about the change of address, hence no statements to jog her memory
Anyway, its cost her approx £4k over 15years, so learnt her lesson.
Who has £4000 in a bank account they have 'forgotten about'???? Especially over 15 years...... Are you covering for her error here?
I for one, would not forget having an account with £4k in!Debt Free By Olympics 2012
Start Jan 2010 - £17589.73
At 05/02/2010 - £640.99 paid (3.64% Paid!)
£16948.74 to go! (96.36% to go!)
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