CI reclaim potential?

dazlingscawby

Hi, I took out CI for a large loan covering about 12 BTL properties, I told the bank that I didn't need to CI, and was it part of the loan deal that I had to take it out, I was told that it would ease the process if I took it out, and I refused. They left the room, had a 5 minute chat and asked me if I would take it out even though I didn't need it if they reduced the mortgage interest rate to cover the CI premium. I went ahead and paid the premium for 30 months or so. Any advice?

[Deleted User]

So you effectively received the insurance without any extra cost? I can't see how this was mis-sold to you in any way.
Critical Illness cover is often a condition of the mortgage, it would only be mis-sold if it was optional and you were told it wasn't.

dunstonh

Any advice?

Any evidence to support your allegations?

Not that there is actually anything wrong with what they did. You got free cover 30 months and then thereafter benefited from the cost reduction on the debt.

A complaint that is successful is required to put you in the position you would have been had it never happened. So, they could refund the CI premiums with one hand then then take it back as an increased cost of borrowing on the rate you say you should have been on with the other. That would not just be the 30 months but for the period of the debt.

Maybe better to be grateful for a bank sales target benefiting you this way.

magpiecottage

12 buy to let properties?

If their aggregate value is more average value is more than about £125,000 including fixtures and fittings then this will be more than the Sterling equivalent of €2 million.

This is significant because, legally, this is a business arrangement - and the only businesses over which FOS has jurisdiction are "microenterprises".

To qualify as a microenterprise, the assets of the business must be worth less than €2 million. This is not altered by the fact that the assets are mortgaged.