Loan Repayment Protector

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peteb

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My wife was made redundant a few months ago. Thankfully she had repayment protector for her loan with AIB.

However it is separate company that handles the claims on their behalf. And they insist on the loan coming out of the account for the them to then refund the repayment two weeks later.

This was ok at the start but money is tight and we just don't have the money to leave there. Is this the way it is supposed to work or should they not just be cancelling the repayment and refunding it to the loan account?
 
need to revisit this one. Anyone have any thoughts on the matter? Surely they can't expect you to have the loan debited from your account on 1st of the month and wait until the middle of the month to get it back? Will writing to them make a difference?
 
My mother had a payment protection plan with MBNA. When she got sick and could not pay it - MBNA just stepped in and payed the money every month. My mother did not have to pay the money and wait for a refund. You should probably check the original document that you signed for the plan. It does not make sense that you have to keep paying it and then waiting to be reimbursed all the time. Maybe you could try getting onto AIB and ask them to sort it out for you.
 
It's a separate company underwriting the insurance, so they wouldn't have the facility to cancel the payment. That's how these types of insurance work - ie where the underwriter is a separate entity.
 
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