Remortgage insurance fee reclaimed

elise03pink · 25 June 2009 at 9:45PM

I do not know if anyone has been charged for not taking out home and contents insurance with the company they have a mortgage or remortgage with. I remortgaged with Alliance & Leciester recently and was charged £25 admin. for not taking out their building and contents insurance, which I already had with another company and it still had 9 months to run. After my first payment I wrote to them and asked them to explain why I was charged £25 admin. for not taking the insurance and I asked them to refund it as it was I thought a case of if you do not pay you will not get the mortgage and if they did no refund it I would take the matter further. Within 2 weeks I had received a letter trying to explain why the charge was made but as a matter of good will they would refund my £25 and it was back in my account. So if you have been caught with the charge give it a go it only takes a letter and you could be lucky.

dunstonh · 26 June 2009 at 9:02AM

I do not know if anyone has been charged for not taking out home and contents insurance with the company they have a mortgage or remortgage with.

The £25 insurance inspection fee used to be common place with all lenders. Only a small number charge it nowadays.

So if you have been caught with the charge give it a go it only takes a letter and you could be lucky.

Although if they say no, dont expect the FOS to side with you. The FOS has ruled in complaints on this charge on found in favour of the lender. In your case, it was cheaper for them to get rid of you then continue wasting time.

elise03pink · 26 June 2009 at 9:17PM

According to my Broker there are still a lot of Companies that charge this fee if you do not take out their insurance and as I said if you don't ask you don't get. I do not see how it was cheaper for them to refund my money banks as you should now banks do not think like that.

dunstonh · 26 June 2009 at 9:27PM

According to my Broker there are still a lot of Companies that charge this fee

Not nowadays. I can only think of two off hand.

I do not see how it was cheaper for them to refund my money banks as you should now banks do not think like that.

Pay £500 if you go to the FOS, even if the FOS side with the bank along with keeping a file open for 6 months whilst its handled (along with staff time) or pay you £25 and close the file.

Yes the banks and insurance companies do think like that until they decide enough is enough in that area.

Remortgage insurance fee reclaimed

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