secured loan insurance

[sherreew2]

hi i am new to this but just wondered if you could give me some advice i took out what i thought was a protected secured loan three years ago. i became ill in september and rang the company about the insurance. i was informed that the insurance was only for life cover, and that it only runs for five years of the ten year loan period as most people pay up their loans within five years! also as the total for the ins was added to the loan at the start this means that i will be paying interest for ten years on insurance which only lasts for half that time. I am really annoyed is there any way i can claim back the cost of the insurance and the interest charged as i believe this insurance has been mis sold to me, i would not have taken out just life cover as i already have this.

[hellhasnofury]

Originally Posted by sherreew2

hi i am new to this but just wondered if you could give me some advice i took out what i thought was a protected secured loan three years ago. i became ill in september and rang the company about the insurance. i was informed that the insurance was only for life cover, and that it only runs for five years of the ten year loan period as most people pay up their loans within five years! also as the total for the ins was added to the loan at the start this means that i will be paying interest for ten years on insurance which only lasts for half that time. I am really annoyed is there any way i can claim back the cost of the insurance and the interest charged as i believe this insurance has been mis sold to me, i would not have taken out just life cover as i already have this.

Hello,

This sounds a very strange insurance. Sounds to me that It has been mis-sold to you. Worth the price of a recorded delivery letter requesting back the money you have paid to them.

Have a read of the ppi section. I know it is a different type of insurance, but insurance is insurance at the end of the day

OOpps sorry, if you are going to pop you clogs best do it in the first five years to get your money's worth. How ridiculas are they
Good luck

[Trojan1401]

PPI is one of the most annoying insurances as usually there are so many get out clauses that it is not worth the paper it's written on. In this instance to attach for only 5 years of the 10 year loan is quite ridiculous and unscrupulous even by the standards of some lenders.

Definately worth getting a copy of the agreement - my bet is that it was a standard term life policy with a high rate of commission for the agent !!!

Oh cynical me