Loan guard reclaim - can anyone help?

littlelozz

Hi
I took out a loan guard on my mortgage 4 years ago and pay £30.52 a month. I took with out with RBS who my mortgage was with and they set everything up for me.
Looking into it I think this was mis sold to me - I have found my policy letter and it says 'thanks for my application' but I know I didnt do this on my own and that the bank did it.
Do I have to prove I didnt do it and was made to take this particular loan guard?
Very confused.

magpiecottage

I'm confused too.

If you got a letter thanking you for applying for something that you hadn't applied for, why did you let the premiums carry on leaving your bank account for four years?

Surely any reasonable person would pretty quickly stop a payment they never consented to from being made.

So, in the circumstances, I do not think your argument is sufficiently persuasive to warrant a complaint being upheld in the absence of supporting evidence.

littlelozz

Sorry havent worded it very well - I was under the impression that I had to take the loan guard from RBS and that it came with the mortgage - something I wouldnt have an option of looking around for the best deal if you see what I mean. The letter I have received saying 'thanks for your application' makes it sound as if I chose the RBS to take my loan guard with but I didnt have the choice.
I let the money come out my account as I was under the impression I had to go with this policy or I wouldnt get my mortgage.
Will look into it a bit further thanks for the reply

magpiecottage

Have a look at your mortgage illustration and offer. (There should be a document entitled "Key Facts about your mortgage" or something similar).

That will tell you if the policy was compulsory or not.

If it was, then you cannot complain that it was missold. (Though not many mortgages did that by then).

If it says that was compulsory to have insurance but not necessarily from them then it has not been missold (this is more common for buildings insurance)

If it does not indicate that PPI was required then, on the face of it, it has not been missold.

They will almost certainly have issued a Statement of Demands and Needs indicating why they believed it was suitable for you and, since the consequences of losing your income through illness or redundancy were, potentially, losing your home, I think that it is reasonable (the old Mortgage Code Compliance Board actually recommended advisers got borrowers to sign a disclaimer if the did not take cover).

There may be grounds for complaint if it would not pay out for some reason but otherwise I can see no missale.