Bank Loan/Overdraft and Life Insurance enquiry

thwaity

Hi there

Im sorry if this has been answered before, but my partner had his own business back in the 1990's until 2007. during the early 2000's, while with NatWest, he needed a bank loan and overdraft facility.

NatWest at the time made it clear that a life insurance policy had to be taken out in order to continue with the facility.

Is this similar to PPI? Although we are looking at nearly 15 years, is there anything that can be done about claiming this back? It was around £100 a month for the insurance.

Many thanks
Steve

Mersey_2

It's possible but unlikely. It may well be that NatWest wrongly informed him that he had no choice ie the only way to keep the overdraft was to take out the insurance. A lot will depend on what was said and what mis/information was provided.


Claims that old can be statute-barred in almost all cases (meaning you have 6 years from the date of the policy/Agreement or 3 years from the date you realised it was mis-sold: the latter is your only hope).


Each case turns on its individual facts and the reasons for your claim. But obviously you/he won't know unless you intimate a claim to NatWest (RBS).

[Deleted User]

thwaity wrote: »

NatWest at the time made it clear that a life insurance policy had to be taken out in order to continue with the facility.

Life Insurance has no connection to PPI and it was not unusual for Banks to insist on extra insurance for Business loans and overdrafts

Only if you can show that the Life Insurance was not compulsory AND that you were wrongly told it was do you have any complaint.

If the Bank insisted on the insurance (which is and was allowed) then clearly it was not mis-sold.