Bank delays insurance switch

danindub

Hi all,

I am _trying_ to switch my mortgage protection to the new provider for couple of months now.

I originally purchased my mortgage protection through my bank along with the mortgage to speed things up. I decided to switch to cheaper provider, I got my policy documents, sent them off to the bank and all.

I was waiting 3 - 4 weeks until I gave them a call. Turns out they've sent documents back to my provider for some sort of policy reassignment or something like that, but my new provider claims they've never received anything. They told me to get my bank to contact them, but people at my bank refused as "they are not making outgoing calls" (WTF?)

I am in touch my my branch often, but all she can do is wait for update from insurance wing. She asked them to re-sent the documents. That was 3 weeks ago again, and I haven't heard anything back.

I spoke to supervisor in the bank call centre too, who basically said that they can't contact insurer on my behalf and have to wait for documents back. But it looks like they've never received these, either.

This goes on for 2 months now, where I'm paying for 2 mortgage protection policies and quite frankly I'm fed up. My new insurer seem to be more than willing to talk to the bank guys, but bank just doesn't.

What can I do? Please help?

Trish56

If you have taken out a new mortgage protection policy well then why haven't you cancelled the first one. Write to the Insurance Company and ask them to cancel the policy with immediate effect and also cancel your direct debit.

Your mortgage protection policy has to be assigned to the lender and once you submitted the new policy to your lender, they should have got you to complete a deed of assignment.

If the bank has mislaid your policy that is their problem, you have a mortgage protection policy in place and therefore are in compliance with the terms of your mortgage. I cannot understand why they would return the policy to your Insurance Company. There seems to be a lot confusion here.

danindub

Thanks for reply.

I took my original policy through by bank. They've told me that they've sent deed of assignment to my new insurer twice now but haven't got it back from them. They can't cancel my mortgage protection until they get that. My new insurer however says they haven't received anything.

Trish56

danindub wrote: »

Thanks for reply.

I took my original policy through by bank. They've told me that they've sent deed of assignment to my new insurer twice now but haven't got it back from them. They can't cancel my mortgage protection until they get that. My new insurer however says they haven't received anything.

You can cancel the mortgage protection policy with the bank they have your new policy. You can also if you have online banking cancel the direct debit yourself.

danindub

Trish56 wrote: »

You can cancel the mortgage protection policy with the bank they have your new policy. You can also if you have online banking cancel the direct debit yourself.

But you see that's not what bank is saying. They are saying they cannot cancel my existing policy until they received the deed assignment back from new insurer.

I can't cancel direct debit, as it's currently connected to my mortgage payment

Quite frankly the bank isn't very helpful with this at all.

Trish56

danindub wrote: »

But you see that's not what bank is saying. They are saying they cannot cancel my existing policy until they received the deed assignment back from new insurer.

I can't cancel direct debit, as it's currently connected to my mortgage payment

Quite frankly the bank isn't very helpful with this at all.

I understand now the mortgage protection premium is included in your monthly instalment. I think I would go into bank ask them for the deed of assignment and bring it to Insurance Company yourself. I would also insist that you get reimbursed by the bank for the duplicate payments.

I think at this stage I would be mentioning the Ombudsman as it not good enough that they will no contact the Insurance Company. Firstly though you need to send in a complaint in writing.

danindub

Amazing. I initiated formal complaint with the bank on Friday. As of this morning everything is resolved and refund of overpaid premium heading my way.


Thanks for help!

Trish56

Glad you got sorted. Amazing what you have to do to get a proper service.