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Loan ppi - does this count?
uptohighdoh
Posts: 23 Forumite
I have just suddenly had a thought.....
I have a loan with RBS which I took out in December 2007, over 7 years. It was a consolidation loan I took out in branch. At the time, the guy said to me about taking out an "insurance policy" for the term of the loan. I told him I work in the Civil Service and would be covered re illness etc but he said in the event of my death then the loan would pay off the balance and wouldn't come out of my estate. I pay £9.00 something per month and he it was taken out with Royal Life Assurance who have recently been taking over by Aviva. The guy also said that in the event of my death etc. the policy would pay out only the amount of the remainder of the loan, not the original amount. Does this constitute PPI misselling? I don't think I actually need this policy. I am confused.
Can anyone help or advise?
Thanks in advance.
:question:
Any advice
I have a loan with RBS which I took out in December 2007, over 7 years. It was a consolidation loan I took out in branch. At the time, the guy said to me about taking out an "insurance policy" for the term of the loan. I told him I work in the Civil Service and would be covered re illness etc but he said in the event of my death then the loan would pay off the balance and wouldn't come out of my estate. I pay £9.00 something per month and he it was taken out with Royal Life Assurance who have recently been taking over by Aviva. The guy also said that in the event of my death etc. the policy would pay out only the amount of the remainder of the loan, not the original amount. Does this constitute PPI misselling? I don't think I actually need this policy. I am confused.
Can anyone help or advise?
Thanks in advance.
:question:
Any advice
Debt at LBM (7/2/10) - £42,000.
Debt at Dec 2011 - £36,200
Debt at Dec 2011 - £36,200
0
Comments
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This is not PPI - it is a life policy that would clear the debt in the event of your death.
There might be grounds for complaint if you had no dependants at the time you took the policy out but probably not otherwise.0 -
Does this constitute PPI misselling?
No.
PPI is offered by general insurance companies. You have a life assurance offered by a life assurance company. Total different type of product (not that the product has anything to do with it)I don't think I actually need this policy.
Are you single with no dependants and live alone?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
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