please help, can they make us pay this

Lo_Lo_2

We moved into our house a year ago and have been paying regular mortgage payments.We received a letter this week from building society to say they have made a mistake in the collection of our monthly repayment to say that our insurance premium has not been incorporated into our monthly repayment for the last year. They say they are sorry and that our account has not shown any arrears and has no adverse affect on our credit rating. They say that our monthly repayments have been recalculated to pay for last years insurance premium and the payments have increased by £30 per month. I realise we have to pay the monthly insurance premium in the future Does anybody know whether they can make us pay what appears to be a back payment for this as it was their error

JoeK_3

I would challenge them and tell them that as it was their fault, they should consider paying the 12 x £30.

You have nothing to lose.
JoeK

Addiscomber

Why did you not notice that your monthly repayments were less than you should have expected?

maninthestreet

Yes, you should pay - assuming the paperwork for the mortage that you signed stated you would buy this insurance, and pay £30/month for it.
Had you needed to make a claim on this insurance, would you have been happy to be told by the BS that you had no insurance cover because they had forgotten to collect the payments?

---lee---

I agree with JoeK but I don’t think they will waive the premium. Is this buildings insurance? If so, you could always say that you will go elsewhere for your cover (providing your not tied in to the mortgage provider) – that might make them think twice. Regarless of if they waive the premium or not, I would still shop around though as you will probably be able to get cheaper buildings insurance elsewhere. Other insurers will pay the admin costs (usually about £25) for switching insurance.