Loan "Assurance"

FatmanFalstaff

I am a newcomer, so apologies if this has already been covered elsewhere. In the 90s I took out a home improvement loan with Abbey National. Although I did not pay income insurance protection Abbey made monthly "Assurance" payments on my behalf - presumably in case I snuffed it while still owing them money. These assurance payments were of course passed on to me. Was the practice widespread and were they required/entitled to do so?

dunstonh

Was the practice widespread

On secured loans, yes. Not so much on unsecured loans but you see it occasionally.

and were they required/entitled to do so?

No they were not required to do it. However, they were entitled to do it.

FatmanFalstaff

So, it can't be reclaimed?

dunstonh

FatmanFalstaff wrote: »

So, it can't be reclaimed?

It depends on what your complaint is and if there is any evidence available that indicates any wrongdoing. Life assurance covering debts is very common and considered normal. That doesnt mean it is always suitable but if it was a condition of borrowing then you had no choice in the matter. They can make it a condition of borrowing. That is allowed.