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Lloyds Loan Insurance question


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Hi all

 

I took out a personal loan with Lloyds some time ago and was talked into taking out protection insurance which at the time seemed to be a condition of the loan.

 

I fractured my ankle sometime during the repayment period and had some time off work and claimed on the insurance to cover no more than 2 months payments.

 

Some time later I paid the loan off early but had to pay the full amount of the insurance premium had the loan gone full term. I didn't realise this until I asked for a settlement figure. I checked the paperwork and because I had made a claim I had to pay the full amount back. The amount claimed was substantially less than the money I had claimed and less than the premium I had paid to date.

 

I know this was mentioned in the terms of the insurance but is this something that could be viewed as punitive action by the bank or more than the reasonable costs that the bank was put to? I haven't got the figures to hand and may have to ask the bank to supply me with copies of the paperwork. A little guidance as to whether this is worth pursuing would be much appreciated, ta.

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