indemnity Claim

Hokimok

Hi

I have been trying to get some closure on a complaint with the bank, regarding mis selling of critical illness cover when I took a morgage, it was only after I was reviewing the direct debits this came to light.

I contacted the company, cancelled the policy and they directed me to the point of sale which was the bank.

I Raised a complaint and since May this in my eyes has not been resolved. I did get a letter from the bank saying that I should go the FSA as they were in no doubt that I had agreed to the policy after seeing the evidence I realised the lady who arranged the morgage had asked us to sign to say she had taken us through a financial review, that was the basis of the signatures they said I had agreed to the policy.

I am fed up and very tired, yesterday contacted the bank and asked them would it be possible to claim my money back, they said they would do an indemnity Claim. I contacted the insurance company who said that was fine and there would be no chasing me for the money there would be no arrears if I was to do this, the policy would just close down. I have received the money back now from the bank. I contacted the insurance company today and was told they would be chasing me for the money as the account will show arrears.

Bit lengthy on this one but please please help.

roonaldo

Whats wrong with the critical illness policy? its not a PPI. Why dont you just tell teh insurance company the policy has been cancelled, perhaps they didnt receive notification from the bank.

dunstonh

I did get a letter from the bank saying that I should go the FSA as they were in no doubt that I had agreed to the policy after seeing the evidence I realised the lady who arranged the morgage had asked us to sign to say she had taken us through a financial review, that was the basis of the signatures they said I had agreed to the policy.

You mean the FOS. The FSA dont deal with consumer complaints.

It is pretty hard to sign up to a CI policy without knowing. You have to answer a range of medical questions and provide your GP details. Once the policy is accepted the insurer sends out another illustration along with cancellation rights. You then get the policy document and the schedule of payments.

So, a pretty tall order if you want us to believe all that didnt happen.

I am fed up and very tired, yesterday contacted the bank and asked them would it be possible to claim my money back, they said they would do an indemnity Claim. I contacted the insurance company who said that was fine and there would be no chasing me for the money there would be no arrears if I was to do this, the policy would just close down. I have received the money back now from the bank. I contacted the insurance company today and was told they would be chasing me for the money as the account will show arrears.

A direct debit indemnity claim will fail. The bank refunds you and then tells the originator to provide evidence the money was owed or go after the individual themselves for the money. It doesnt get you your money back. It just creates a debt which could damage your credit file. That assumes they dont go back to the bank and get the bank to pay them back. I suspect the bank will have to redebit you again once the insurer says the debit was taken fairly.

magpiecottage

dunstonh wrote: »

Y
A direct debit indemnity claim will fail. The bank refunds you and then tells the originator to provide evidence the money was owed or go after the individual themselves for the money. It doesnt get you your money back. It just creates a debt which could damage your credit file. That assumes they dont go back to the bank and get the bank to pay them back. I suspect the bank will have to redebit you again once the insurer says the debit was taken fairly.

That is the case for most general insurances - particularly motor.

However, with life/CI the insurer will normally check with the policyholder and then simply lapse the policy.

dunstonh

magpiecottage wrote: »

That is the case for most general insurances - particularly motor.

However, with life/CI the insurer will normally check with the policyholder and then simply lapse the policy.

Even though they the policy is many years in force and the indemnity claim is bogus?

magpiecottage

dunstonh wrote: »

Even though they the policy is many years in force and the indemnity claim is bogus?

I interpreted it as the last payment was sent after the policy was cancelled.

If we are talking about many years' worth of premiums I think the bank would conclude that the OP had authorised it and, in accordance with FSA Rule BCOBS 5.1.11R it should not be refunded.

I would be comfortable defending a complaint of that nature on that basis.