The Cumberland Building Society.

dwsjarcmcd

magpiecottage wrote: »

The point about this is that it pays for a contingency insurance.

If a borrower says they will insure the property but doesn't or (more likely) does not insure it for the full rebuilding cost and then a claimable event happens the insurer will not pay out - or only pay a percentage of the claim based on the percentage of the full rebuilding cost that the policy covers.

So the contingency policy covers the lender if that happens.

That means insisting on the policy is an exercise of legitimate commercial judgement and outside the jurisdiction of FOS.

Having worked for a Building Society for many years who used to charge an admin fee that was certainly not the case. The fee was supposedly to check the cover was sufficient (sums insured and coverage). The reality is these were never checked and was simply an income line. They were done away with many years ago.

Never used to purchase a contingency insurance and I don't believe for a second the Cumberland purchase anything.

dacouch

Legal and General will normally pay the £25 for you, give them a ring

rewood1104

Again, thanks for comments. I do have thing about the Cumberland, I feel they have have taken advantage of me since say one. Naive, yes I don't mind admitting it, but who wasn't. That's why I'm pursuing this one.

Anyway, as part of my complaint I actually have asked for sight of the policy that has been taken out in my name! So, let's see what they come back with.

ACG

Its not cumberland, its Aviva. Aviva manage your policy, every year they sent you a renewal and every year you went with it.

Cumberland just sold it originally.

I think in future you will see things like this changing as we (advisors) have to start proving we have reviewed out clients or at the very least attempted to. I cant tell you the number of times i have tried to contact clients to arrange reviews and they decline - they think im going to try to flog them something more in reality im checking what they have is still fir for their needs and to try to save them money.... if the building society had attempted to get you back in, would you have gone in?

Quentin

rewood1104 wrote: »

Again, thanks for comments. I do have thing about the Cumberland, I feel they have have taken advantage of me since say one. Naive, yes I don't mind admitting it, but who wasn't. That's why I'm pursuing this one.

Anyway, as part of my complaint I actually have asked for sight of the policy that has been taken out in my name! So, let's see what they come back with.

Have you tried the advice in #2?

If you get a result that will save you all the hassle of complaining about this legitimate charge, which is likely to get you nowhere!

(Were building societies not supposed to make these charges, why would insurers readily reimburse them to new customers switching their home insurance away from the lender's associated insurer?)

dwsjarcmcd

ACG wrote: »

Its not cumberland, its Aviva. Aviva manage your policy, every year they sent you a renewal and every year you went with it.

Cumberland just sold it originally.

I think in future you will see things like this changing as we (advisors) have to start proving we have reviewed out clients or at the very least attempted to. I cant tell you the number of times i have tried to contact clients to arrange reviews and they decline - they think im going to try to flog them something more in reality im checking what they have is still fir for their needs and to try to save them money.... if the building society had attempted to get you back in, would you have gone in?

Don't agree with this. It is the B/S that sets the commission which dictates the price. I'm sure the cover is fine, just wildly overpriced compared to the same policy and cover elsewhere. Similarly it's not Aviva that sets the charges.

ACG

You might not agree with it, but as someone who sells B&C (admittedly not in great numbers) i purposely had a few requirements when choosing a B&C provider, 1 of those requirements was that they had a limit on how much the price would rise on renewal.

Not all insurers do this, the original seller will get commission at a percentage of the premium, but its the insurer who sets the price. That will take into account the commission paid yes, but if you went into the building society tomorrow and asked them for a brand new quote as a new customer i would be very surprised if it came out at £400.