Mis sold Life Insurance with Bank Loan?

ludohowes_2

I am aware of the current claims regarding PPI insurance which has been missold with all forms of loans etc.

It has just occured to me the manner in which I was sold my bank loan!

In 2008 myself and my then-boyfriend (who already held a joint bank account with Natwest for the ease of saving etc), went along to our local branch to apply for a loan for our wedding the following year. Will admit we werent the most clued up on loans etc, and I was only 21/22 at the time.

The advisor went through all our finances and said she'd put the application through. Whilst doing the application she asked did we want to add Payment Protection Insurance... as the whole fiasco had just started up with PPI claims around this time, and all the negative press was in the forefront of my mind, we politely declined.

However we were then told we had to have some sort of insurance along with the 'charged/premium' bank account to ensure the loan went through. We agreed to the bank account (which I later cancelled 3 months later due to the way it was sold to us and the uselessness of the account, when it was costing me £11 a month), and then enquired did we really need the life insurance.

The advisor told us yes, our loan wouldnt be approved (she wouldnt even be able to put the application through) without BOTH of us having seperate life insurances.

I have just realised that I never actually sent my signed documents back to them (I still have them here) so have never paid anything towards mine, and my now-husband has been paying £6.00 a month since early 2008. We have since moved house (the bank and insurance company doesnt have our new address) and the insurance payments actually come out of a Santander account now.

My husband is also not the main earner in our household so wondering how useful this insurance would ever have been to us, married, single or otherwise...

Clearly the life insurance did NOT need to be in place to get an approval on the loan (as we got the loan based on either none of us or only one of us actually signing the insurance documents in time for it)

I am wondering if this is going to be a valid claim, in the same way that PPI is?

We most definitely weren't advised we needed the life insurance, rather told if we didnt do it, they wouldnt even be able to put the application through...we ABSOLUTELY HAD to take either life insurance or the PPI...

Any advice here would be much appreciated!

dunstonh

My husband is also not the main earner in our household so wondering how useful this insurance would ever have been to us, married, single or otherwise...

Most couples have life assurance. Even if one doesnt earn enough or even nothing at all.

Clearly the life insurance did NOT need to be in place to get an approval on the loan (as we got the loan based on either none of us or only one of us actually signing the insurance documents in time for it)

It may have been. Banks are notorious for not having joined up checking. So, in their eyes, the fact the process was started was enough. The fact it didnt finish in one case would not have registered.

I am wondering if this is going to be a valid claim, in the same way that PPI is?

If the life assurane WAS a requirement of the loan then it was not a mis-sale. If you were lied to then it was. However, it is a verbal allegation that is very hard to prove. Very few complaints get upheld on verbal allegations alone. They have to rely on another failing to succeed or be auto-payout(many PPI complaints get auto-payout. This isnt PPI though).

Bottom line is that you may well have a case but it may not end up being successful. Impossible for anyone here to call it though as we dont know what documentation the bank has to support their recommendation for life assurance.