This is a standard template of a letter you could send to your bank, if you feel your loan insurance was missold. With many banks having been already fined by the FSA you may have a good chance of getting a refund.
Template for Letter to Reclaim Cost of Loan Insurance
Your Address
Date
Company’s Address
Dear Sir / Madam
Ref: [Account number or customer reference]
I am writing to you regarding the product [name of financial product]
I believe it was missold for various reasons, contrary to FSA regulations. Therefore I am asking for a refund
I believe the product was missold because
[delete as appropriate, leave reasons that apply to you. And add any extra reason which may be appropriate]
1. Not told all details.
When I was sold the product I was not aware about the exemptions and small print. For example, I was not aware that being self employed would preclude receiving payment in the event of illness.
2. I was not told the full cost?
The salesman indicated it would only cost [£12] a month. But, I was not aware the final cost would be [£2,500]
3. Your Company has a record for Misselling?
Your company has been fined by the FSA for misselling loans therefore it is highly likely they would find it has also been missold to me.
4. I was under the impression the product was necessary
When taking out a loan, the salesman implied that the product was necessary. However, I later learnt this was not the case. If I had been aware insurance was not necessary for taking out a loan, I would have avoided the extra cost.
5. Pushy Salesman
The Salesman was pushy. He sold the virtues of the product without revealing its drawbacks.
6. Difficulty cancelling
When I tried to cancel my insurance I was misinformed that that was not possible without taking out a new credit agreement.
It is your responsibility to prove that the policy I took out was fair and reasonable and that it was sold fairly, following FSA regulations. Since this did not occur I demand a full refund and interest on the amount paid out. I expect 8% interest for each payment as this is the statutory amount a court would pay.
I look forward to the prompt resolution of this matter. If the issue is not resolved within 8 weeks I will pursue the matter further and ask the Financial Ombudsman to investigate my complaint.
Your faithfully,
[Your signature]
[Your Name]
http://www.financial-ombudsman.org.uk/
Also available as download: Download Letter for Refund