Bank didn't un-assign Life policies.

B

blowtorch

Guest
Bought a Council house in 1997. Bank had a hold on the deeds, and took 2 x Life policies that were assigned to them. I cleared the Home Loan in 2001. I left the deeds and policies for safekeeping with them. I asked if the Policies were now unassigned and was told yes. I took a personal loan out a year later. I told the Bank that I didn't want to assign the Life Policies (worth more than € 230,000) against less than € 20,000 of a loan. They insisted on security and sold me their in-house Lpan Protection. While I was with them signing for the loan, I asked them to double-check that the Life policies were un assigned. 2 years later I consolidated all debts, still less than € 20,000, and again they wanted security, and again I was told that the Life policies had been un-assigned.

It now transpires that the Life policies were never un-assigned. In effect they had security all the time and yet insisted on me taking out LPP / Serious Illness for the personal loans.

Dishonest to say the least, of them. What recourse have I. Can I get back the LPP / Serious Illness premiums, as they already had security?
 
I'd suggest a formal, written complaint to the Bank as a first step, advising them of your intention to take the case to the Financial Services Ombudsman if you are not satisified. Check in with the Ombudman's office first to see if there is any danger of that your case could run out of time while waiting for a response from the bank.
 
I sent my complaint a year ago. They dodged it saying that there was no intention to hold the assignment and that it was an oversight. In the ensuing 12 months I have literally a stack of letters to and fro on the issue and other issues that arose during correspondence with them. I asked them to supply me in a transparent manner with commission details that they (or others) received on the LPP and Serious Illness. Firstly the local Bank Branch told me in writing there was no commission payable to the Bank as they were a Tied agent of their Parent. Their Customer Services told me in writing the exact same thing. I pushed it as they only answered in relation to the Bank (and not 'others'). They then reverted to say that they (the bank) did in fact receive commissions (which were substantial in relation to the premiums paid). So, in addition to selling me the in-house products, the selling branch also received commissions from the Parent company. And all the time they still had the Life Policies.
 
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