Redundancy Insurance

manimibe

Hi all

Have a question for the experts out there

This is a bit complicated but I'll try to explain.

When we took out a loan on the house, we effectively re mortgaged. Upon doing so we were told that we 'had' to take out redundancy insurance which we did.

However going back 3 years ago, we had reason to possibly make a claim (it was unclear at this point just talks of redundancy), so i contacted HSBC and they said we didnt have a policy with them. Odd as we had been receiving letters from them about said policy, changes to terms etc.

It turns out that as wed queried something way back in 2005 theyd put our policy on hold and hadnt taken anymore money from our account. Wed missed this as we have a bank account that so much money goes into each money and all bills are paid out...we never touch that money or rarely look at the account.

To cut a long story short, after much tooing and froing we ended up going to the ombudsman, mainly because of the way insurance company were handling just the basics. We won our case and whilst the onus was on us to pay, the onus was also on the company to keep us updated and inform us of any non-payment.

The agreement was that if there was no claim (which there wasnt, only because the other half WAS made redundant but was then employed by the same company for a further 18 months on several temporary contracts) we would have to pay back premiums of £900

In the event of any future claim going ahead. we would also have to continue with the policy from the date we won our case. Paying monthly as before.

We agreed to do this and were in the process of sorting out the £900 owed making arrangements to pay some each month when suddenly, out of the blue, about 3 weeks ago we had a very odd letter which read between the lines saying we no longer needed to pay back the said £900

Now my question is, which you may or may not be able to answer....is this, do you think its down to all the PPI claims and miss selling, or just a goodwill gesture. Im wary of contacting them in case they change their minds lol

Btw, we are still paying monthly premiums of £47 for said insurance!

dunstonh

Now my question is, which you may or may not be able to answer....is this, do you think its down to all the PPI claims and miss selling, or just a goodwill gesture. Im wary of contacting them in case they change their minds lol

Highly unlikely it is anything to do with the PPI issue. Firstly, the PPI issues are still only a minority of people. Plus, MPPI is largely outside of the issues involving loan and credit card PPI.

It is probably due to them wanting to get rid of the case off their files as the cost of keeping records like that can actually work out more than the amount involved. The case remains open until settled and they dont want it hanging around.

manimibe

Thanks for taking the time to reply Dunstonh, really appreciate it