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Building insurance mis-selling

Hi all. I've asked this before but not sure if in the correct forum, can anyone advise please?
I have a question re mortgage insurance. We remortgaged with West Brom who said as a condition of the "good" interest rate we must take "SuperSure" buildings insurance with them. When I phoned Tesco to cancel my current policy they said that was illegal. I relayed this to the West Brom and they said they were not forcing me to take buildings and contents, just buildings, but that it would be cheaper to take both. In actual fact the premiums were more expensive and as they were added to my mortgage I was paying interest on the premiums (for 5 years of the fixed term). These forums talk of card and loan PPI. But this query is general insurance/mortgage. I always thought it was very dodgy and wrote to them (think I still have the reply somewhere). Is it bad, can I complain, if so how etc.? Cheers if anyone knows. Mark

Comments

  • DevCoder
    DevCoder Posts: 3,363 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    A provider can insist on purchasing their products to get the best rate, nothing wrong with that, if you don't like it then don't agree and you'll get their standard/worse rate.
  • dunstonh
    dunstonh Posts: 121,389 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 26 June 2013 at 8:38PM
    I have a question re mortgage insurance. We remortgaged with West Brom who said as a condition of the "good" interest rate we must take "SuperSure" buildings insurance with them.

    That is allowed.
    When I phoned Tesco to cancel my current policy they said that was illegal.
    It is not illegal. It is a myth that a lender cannot insist on insurance. The wrongdoing is where they tell it is is required when it is not. However, when it is required, that is fine. Being used to get a special deal is allowed.
    I relayed this to the West Brom and they said they were not

    WB are correct.
    I always thought it was very dodgy and wrote to them (think I still have the reply somewhere).

    its not dodgy.
    Is it bad, can I complain, if so how etc.?

    its not bad. it is allowed.
    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.
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