Buying a House, Taking their insurance

colinwatson1980

Hi There,

New to the forum, I wanted to ask a question.

When we bought our 1st house (solely in my wife’s name) the company that got us the mortgage etc (through Northern Rock) made us sign up to their insurance. Which at the time was fine.

After paying the insurance for a few months, we were in Asda, and noticed we could get insurance for around £25 a month cheaper, so we cancelled it and took out the Asda insurance. This company then pursued us for the money, and it went through our lawyers and won the right to get the money from us. Even though we stated that the Mortgage agent at our house did not explain this (though why would he) but he did tell us we had to take their insurance to get the deal through (for some reason I had to sign this agreement aswell, even though I wasn't on the deeds for the house)

In light of all these new developments, I am now starting to think were we played for fools here, as we settled this long ago (bought the house in 2005 I think) but I also think that because this went through Lawyers we don't actually have anything we can do.

If anyone thinks this is worth pursuing then I can start the ball rolling and provide more details

Kind Regards

Colin

dunstonh

After paying the insurance for a few months, we were in Asda, and noticed we could get insurance for around £25 a month cheaper, so we cancelled it and took out the Asda insurance.

Have you seen the quality of the ASDA product though? Its no wonder it is cheaper.

This company then pursued us for the money, and it went through our lawyers and won the right to get the money from us. Even though we stated that the Mortgage agent at our house did not explain this (though why would he) but he did tell us we had to take their insurance to get the deal through (for some reason I had to sign this agreement aswell, even though I wasn't on the deeds for the house)

If you agree to employ someone where they are paid out of the commission of the product that was purchased but you go on to cancel that product and create a commission clawback then you are legally liable for the difference between the net commission received and the amount of the fee agreed.

In light of all these new developments, I am now starting to think were we played for fools here, as we settled this long ago (bought the house in 2005 I think) but I also think that because this went through Lawyers we don't actually have anything we can do.

If anyone thinks this is worth pursuing then I can start the ball rolling and provide more details

What new developments are you on about? Indeed, the only new developments close to your scenario is the retail distribution review which will make the method you were charged compulsory from next year in many areas of financial services.

Also, the fact it went through legal representatives indicates that the law was with the firm. Be settling and using the legal route, you cant go back later and try and change it.