Miss-sold Building and Contents Insurance

jstobbs

Wow, where to start. So, our mortgage adviser arranged our buildings and contents insurance for us when we purchased our property in 2006. Being very trusting we assumed that as they had all the details of the value of the house etc this would be very simple. Stupidly we never questioned anything.

Each year we would get a letter from the bank telling us our insurance was due for renewal but that we didn't have to do anything as it would just carry on as normal. As we were making the payments (which were included in our monthly mortgage payment) we didn't question anything. Although, it did strike me as odd that there was never a breakdown of the cost or never any mention that the insurance was going up etc. Anyway, last year my husband finally decided he was going to shop around for insurance to see if we could lower anything. We found out that not only have our bank (Halifax) been charging us £600+ per year for buildings and contents but they have been adding it onto the mortgage and it is getting paid off over the length of our mortgage!!!!!! The bank are refusing to do anything saying that they have not miss-sold the insurance in anyway. Help. I am thinking that we need legal advice but do not want to get scammed by a PPI company...

dunstonh

Being very trusting we assumed that as they had all the details of the value of the house etc this would be very simple. Stupidly we never questioned anything.

They should have most of the required details. Just the extra insurance questions would normally be needed.

Although, it did strike me as odd that there was never a breakdown of the cost or never any mention that the insurance was going up etc.

The renewal notices are issued on an annual basis just before renewal. Just as you confirm you received them.

We found out that not only have our bank (Halifax) been charging us £600+ per year for buildings and contents but they have been adding it onto the mortgage and it is getting paid off over the length of our mortgage!!!

Not quite. When it is added to the mortgage, it is paid via a sub account which is non-interest charging and the your monthly mortgage payment is increased to cover the 12 months of cover. it is not being paid over the term of the mortgage.

The bank are refusing to do anything saying that they have not miss-sold the insurance in anyway.

To be honest, I cant see what you have to complain about. You also contradict yourself i.e: you say you got a letter every year for renewal. Yet you later say you never got a breakdown of the cost. So, which is it?

I am thinking that we need legal advice but do not want to get scammed by a PPI company...

Legal advice for what? What exactly are you trying to achieve?

You had to have buildings insurance. You agreed for the bank to supply that using their own product and you confirm the bank sent an annual renewal notice exactly as they are meant to. There is no wrongdoing here. Just misunderstanding by you.

Nasqueron

Was your mortgage advisor an independent? Did you pay them? If not they can make you use their preferred insurer as they get commission which covers their bills - this is perfectly legal and indeed, may have a clause if you cancel in the first few years you have to pay the broker.

dunstonh

Nasqueron wrote: »

Was your mortgage advisor an independent? Did you pay them? If not they can make you use their preferred insurer as they get commission which covers their bills - this is perfectly legal and indeed, may have a clause if you cancel in the first few years you have to pay the broker.

For it to come off the mortgage, it would have been halifax's own product. Only theirs can be paid that way.