Could I reclaim these fees....

sb44

When my husband took out a mortgage with LLoydsTSB in 1999, he was told he had to pay an extra monthly fee alongside the mortgage payment to pay off the loan if he died during the repayment period.

He told them that we had joint life cover of £100,000 which we had only just taken out (before we decided to buy a house), as we had a newborn baby and wanted to provide for her should one of us die.

The mortgage was for £21,000.

They told him he HAD to take out this cover in able to be given the mortgage, were we missold this and could we claim it back?

As I say the whole of life policy was taken out before we took the mortgage so they can't say that we didn't have a way of paying off the mortgage.

koexelek

sb44 wrote: »

They told him he HAD to take out this cover in able to be given the mortgage, were we missold this and could we claim it back?

I'm sure that would have been the case.
Banks have used that old chestnut for years..... to get something you want, you need to take something from them they want you to have:o

It's proving it though. No doubt the bank would deny that was ever said.
If you have it in writing you'll have a case though

sb44

koexelek wrote: »

I'm sure that would have been the case.
Banks have used that old chestnut for years..... to get something you want, you need to take something from them they want you to have:o

It's proving it though. No doubt the bank would deny that was ever said.
If you have it in writing you'll have a case though

But if he had £100,000 of cover already, why would he want another policy when the one he had covered him for 5 times more (or less) than the mortgage amount!

koexelek

sb44 wrote: »

But if he had £100,000 of cover already, why would he want another policy when the one he had covered him for 5 times more (or less) than the mortgage amount!

Of course he wouldn't.

Bank staff are under pressure to sell policies to clients, whether they actually need them or not.

When I worked in a bank years ago ( and the main reason I left) we were told... they don't get the mortgages and loans they want without taking the insurances they don't need or want :eek:

sb44

koexelek wrote: »

Of course he wouldn't.

Bank staff are under pressure to sell policies to clients, whether they actually need them or not.

When I worked in a bank years ago ( and the main reason I left) we were told... they don't get the mortgages and loans they want without taking the insurances they don't need or want :eek:

Grrrrrrrr!

Bit lame I know, , didn't want to swear.

ACG

Some mortgages did have a requirement that you HAD to take out life insurance.

Im assuming you do not have any paperwork from the time? If you do, have a read through it. If you dont ask them about it but look at this from the other side... You could have walked away and gone to a different lender who did not insist on you having life insurance.

koexelek

ACG wrote: »

Some mortgages did have a requirement that you HAD to take out life insurance.

Unlikely in 1999 though.

Most lenders stopped assigning life cover a good few years before that
Sounds to me like a bank official under pressure from the bosses to hit targets

dunstonh

Lloyds had some deals in the 90s which required an insurance purchase to get the special terms. A business model that is allowed as long as the insurance product is suitable and a need exists.

As it stands, the allegations made by the op are unprovable anyway. So, any complaint would be viewed on whether there was a need or not. A married couple borrowing money secured against their house is an easy life assurance need. So, it should be an easy rejection.