Income protection Insurance

CooperRachel12

Hi I need some advice as to whether I have a case.
I took a business loan out in 2010 and was told by my bank that I had to have income protection insurance in order to take out the loan and they booked me an appointment with an in house insurance adviser.
I was sold it under the assumption that if I couldnt work (as i am self employed) then I would get a payment after some many weeks. The more I think about it the more I feel they just sold it to me to ensure they continued to get their loan repayments back not to support me! I dont know if this is the same as the payment protection insurance (PPI) that people have been claiming back. Also my bank set this up with a 3rd party so who do i send the claim to the bank or the 3rd party. Would really appreciate some in put.
Thank you
Rachel

[Deleted User]

CooperRachel12 wrote: »

I dont know if this is the same as the payment protection insurance (PPI) that people have been claiming back.

It's not in any way like PPI.

CooperRachel12 wrote: »

my bank set this up with a 3rd party so who do i send the claim to

You don't send a "claim" to anybody. You need to make a valid mis-selling complaint in order anything to be refunded to you. Since this is protection for a business loan, in what way do you imagine it was mis-sold to you?

CooperRachel12

Moneyineptitude wrote: »

It's not in any way like PPI.

You don't send a "claim" to anybody. You need to make a valid mis-selling complaint in order anything to be refunded to you. Since this is protection for a business loan, in what way do you imagine it was mis-sold to you?

I am just concern as they told me I had to have in order to get the loan!! They didnt advertise to me as payment protection insurance but if i could work and my income protection paid out I am sure they would ask for their repayment to paid out of this money!

[Deleted User]

CooperRachel12 wrote: »

I am just concern as they told me I had to have in order to get the loan!! They didnt advertise to me as payment protection insurance but if i could work and my income protection paid out I am sure they would ask for their repayment to paid out of this money!

I think you need to research exactly what the insurance actually covered before you reach the conclusion that it was in any way mis-sold to you..

Insider101

CooperRachel12 wrote: »

I am just concern as they told me I had to have in order to get the loan!! They didnt advertise to me as payment protection insurance but if i could work and my income protection paid out I am sure they would ask for their repayment to paid out of this money!

You're quite right, of course they would. That is the whole point of them insisting you have it. Lending to you as a self employed person is a risk. There is a risk that if you are unable to work you will not be able to repay the loan. Making it a condition that you take out invoke protection (which is not the same as PPI) is one way to mitigate that risk. The alternative is not to lend you the money.

As per previous I think you need to find out exactly what the product was and what you were covered for.

dunstonh

I took a business loan out in 2010 and was told by my bank that I had to have income protection insurance in order to take out the loan and they booked me an appointment with an in house insurance adviser.

That effectively breaks the link between the loan seller and the insurance adviser. The insurance adviser has to recommend based on suitabilty.

I was sold it under the assumption that if I couldnt work (as i am self employed) then I would get a payment after some many weeks. The more I think about it the more I feel they just sold it to me to ensure they continued to get their loan repayments back not to support me!

That is in part correct. With business banking clients, banks often require insurance on the key man/director/self employed individual given their key role. However, you would benefit as well so its not as if its all one way.

I dont know if this is the same as the payment protection insurance (PPI) that people have been claiming back.

No. A very different product covering a similar area. PHI is far better than PPI.

Also my bank set this up with a 3rd party so who do i send the claim to the bank or the 3rd party.

It is not a claim. You will be complaining about the adviser. However, unlike non-advised sales, the adviser is individually regulated with the FCA and will be personally responsible for the advice. This is not like PPI where the seller is not held responsible. You havent indicated any wrongdoing and a complaint would put stress and anxiety to the adviser and could affect their career path. You seem to be mixing up the product you have with PPI and the requirements.

I

am just concern as they told me I had to have in order to get the loan!

Which they are allowed to do.

They didnt advertise to me as payment protection insurance but if i could work and my income protection paid out I am sure they would ask for their repayment to paid out of this money!

Not quite sure what you are saying there but this is not payment protection.

magpiecottage

CooperRachel12 wrote: »

The more I think about it the more I feel they just sold it to me to ensure they continued to get their loan repayments back not to support me!

Absolutely. That is why buildings insurance is a condition of a mortgage. The lender knows that if your house burns down without insurance it has piece of land with rubble and cinders on it the borrower cannot repay.

In either case, it is a an exercise of legitimate commercial judgement and is therefore not something FOS would consider.