Mr Reno

Reno_Zerbini

About 20 yrs ago I applied through a mortgage broker to increased my mortgage with Lloyds Bank to £70K. We were told by the broker that Lloyds Bank would only provide the increased mortgage if I & my wife take a life insurance policy out to cover the whole sum. The insurance company that has insured us is the LV & the total monthly sum is £45/month which was to cover the total loan of £70K.
Note;
1. Over the last 20 yrs my mortgage has been reduced to the current level of approx £7K.
2. My insurance premium of £45/month has never been reduced i.e. tracking the lowering of the mortgage.
3. We never had statements / correspondences from LV relating to policy.
I believe that we’ve been forced to obtain insurance under malpractice. I’ve tried to find the appropriate rout in getting my grievance addressed by consulting both the Lloyds Bank & insurance company LV but they both advise that I consult one another i.e. going around in circles. I’m now trying to locate the broker but the firm went out of business many years ago.

Can you advise whether I have a case along with what rout I should take.

societys_child

Any complaint you may have would be made to whoever sold you the policy, in this case the broker.

We were told by the broker that Lloyds Bank would only provide the increased mortgage if I & my wife take a life insurance policy out to cover the whole sum.

Even if you have proof of that, as the broker is no longer trading, it appears you have no one to complain to.

[Deleted User]

societys_child wrote: »

Even if you have proof of that, as the broker is no longer trading, it appears you have no one to complain to.

Yes, it's a pre-regulation complaint, so FSCS cannot help either (must be after January 2005).
However, it doesn't appear to be a valid complaint anyhow. It's very likely that life insurance was a requirement back then. Premiums are fixed at the start and no statements are required for insurance policies.

dunstonh

About 20 yrs ago I applied through a mortgage broker to increased my mortgage with Lloyds Bank to £70K. We were told by the broker that Lloyds Bank would only provide the increased mortgage if I & my wife take a life insurance policy out to cover the whole sum.

That sounds about right. Lloyds still required life assurance on mortgages to around 1995. It stopped when C&G mortgages started to be sold via Lloyds. If yours was a Lloyds Bank mortgage rather than C&G then its probably correct that you needed life assurance. Most people take out life assurance on their mortgages. It is common sense to do so. So, even if you didnt have a contract need, you almost certainly had a financial need.

1. Over the last 20 yrs my mortgage has been reduced to the current level of approx £7K.
2. My insurance premium of £45/month has never been reduced i.e. tracking the lowering of the mortgage.
3. We never had statements / correspondences from LV relating to policy.

1 - irrelevant
2 - it shouldnt change. The life assurance terms are agreed at the outset
3 - you wont get statements. It is not an investment. There is no need for any correspondence as its a life assurance.

I believe that we’ve been forced to obtain insurance under malpractice. I’ve tried to find the appropriate rout in getting my grievance addressed by consulting both the Lloyds Bank & insurance company LV but they both advise that I consult one another i.e. going around in circles. I’m now trying to locate the broker but the firm went out of business many years ago.

You havent described any wrongdoing. Just a bunch of incorrect assumptions and misunderstanding about life assurance. However, as already mentioned above, you have no-one to complain to as its pre-regulation and the adviser business no longer exists.

Can you advise whether I have a case along with what rout I should take.

There is no complaint here and there is no-one to complain to. Game over.