Aviva life insurance with natwest loan

Evie2015

In May 2012 at the age of 24 I got a call from a customer advisor in my local Natwest branch inviting me in to discuss taking out a loan to pay off my student overdraft and credit card which together was about £2500.

I got approved for a £5000 loan for a term of 48 months where I paid £141 per month. However, the guy who sold me the loan said I HAD to take out a life insurance policy to run alongside the loan, incase I died and my family had to pay my loan off. In the appointment he processed an application for a life insurance Policy through Aviva for a fixed premium at £6 per month. I wasn't told how long the life insurance lasted for. All I knew was that if I died, my next of kin or whoever would get paid near to 15k to cover the rest of my loan if I died. It was made out to me that the only way to get the loan was to take out the aviva life insurance.

So since May 2012 I have been paying an extra 6 quid per month to Aviva to pay for my loan amount incase I died. I only have a few months left of my loan to pay off now but I feel that I was missold it. I phoned Aviva today and they said the life insurance policy was for a 40 year term. At the time I took the loan out, I had no children, no husband and no property. I was single and worked full time.

Please can anyone advise me as to whether I have a case against natwest for being missold a product and could anyone tell me whether something similar has happened to them.

Thanks

vlad

You weren't missold the loan,you were by the sounds of it missold the insurance,however £6 a month for 15k life insurance isn't a bad deal,it certainly will be in say 30 years time when you will be in your 50s
At that point 15k's worth of life instance would cost you a lot more than £1.50 a week.

Evie2015

If I died today I would want a policy that paid out more than 15k as now I have a husband and baby.

To be honest, it doesn't matter whether I got a 'good deal' in 2012. I was mis-sold a product by Natwest. A product that I didn't need or want at the time but felt that it was essential for me to obtain the loan.

If I complain about this to Natwest and it has a successful outcome, apart from getting my premiums repaid to me to date, how much is usually paid out by natwest for mis-selling a product to a customer? Especially when the customer adviser said I needed the insurance to obtain a loan and I had no other choice! Luckily I kept the contact details of the guy who sold me the loan all those years ago in branch!

chanz4

good luck, it wasn't ppi

Nearlyold

Evie2015 wrote: »

If I died today I would want a policy that paid out more than 15k as now I have a husband and baby.

To be honest, it doesn't matter whether I got a 'good deal' in 2012. I was mis-sold a product by Natwest. A product that I didn't need or want at the time but felt that it was essential for me to obtain the loan.

If I complain about this to Natwest and it has a successful outcome, apart from getting my premiums repaid to me to date, how much is usually paid out by natwest for mis-selling a product to a customer? Especially when the customer adviser said I needed the insurance to obtain a loan and I had no other choice! Luckily I kept the contact details of the guy who sold me the loan all those years ago in branch!

You don't usually get a payment for being miss sold you get your premiums back plus 8% pa simple interest so £252 plus about £34 interest. I would expect that £6.00 pm was the minimum premium so you would have either got a longer term than you needed or a greater amount of life cover than you needed or a combination of both.

poppasmurf_bewdley

You weren't mis-sold the deal, you mis-bought it.

All you had to do was say 'no' to the salesman. But you wanted the loan so you went along with the deal.

And now you have visions of £££'s in compo before your eyes,but you can forget that. Your heirs would not have been complaining about the deal if you had died and the policy had paid out.

This thread reminds of of one from years ago, when somebody posted that they had been sold a life insurance policy which had come to the end of its fixed term, and hadn't paid out so it was a waste of money, and could they get their premiums back.