personal loan

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clueless! | 20:27 Tue 14th Aug 2007 | Civil
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Who pays your personal loan off if you drop dead?! Have just applied for a personal loan with a major bank, declined the loan protection insurance, got very hard sell indeed (25 mins of it on the phone during application process) demanding to know who will pay the loan if I die. I have no assets etc but consider myself a low risk - good health, no financial committments, no dependents, good credit history, always been in work, hence the refusal to pay the insurance. The loan company said I need to notify my next of kin as they will become liable. I didn't think this was true - is it? Incidentally I have been offered the loan. Thanks


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Your estate is liable to repay the loan.

Your next of kin have no responsibility in relation to it - obviously they may lose out on inheriting your estate though....
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Thanks - this is what I thought. Frankly I was appalled at how pushy they were. Not good customer service!
True, but always remember these people get good commission on selling you stuff that you don't need.
All least D1ck Turpin wore a mask when he robbed people..!!!!!
By regulation lenders and intermediaries can be held responsible for a complaint regarding not just for a product they sold a client but a product that they were able to arrange but didn't get a client to take up. If the person on the phone (who will also be up for a bonus on the insurance) can see a clear need for payment insurance then they must take all reasonable steps to ensure that you understand the insurance product being offered and the potential implications of not having the insurance.

However 25 minutes sounds excessive and them ouright lying to you is unjustifiable. Most payment protection plans are designed to cover the loan if you are unable to work through sickness, accident or redundancy. I think that most people who suffer one of these and are unable to work wouldn't have considered themself "high risk" but it is a fact that these things happen.

40% of incapacity claimants suffer from two causes: mental/stress and muscular-skeletal. (Source Unum Provident 2006.)

1 in 5 (10 million) adults in Great Britain have a disability or long-term health condition (Source: Disability Rights Commission - Employment Law: Guide for Employers.)

More than 2.7 million people of working age have been off work and are claiming incapacity benefits. (Source: Department of Work and Pensions 2005.)

74% of this 2.million figure have been claiming the benefit for more than 2 years and 35% have been claiming for more than 8 years. (Source: Unum Provident 2007.)
if anyone has a similar problem with a tele sales person pushing these protection policies,
just say yes,
they then inform you that it is seperate from the loan and you have a right to cancel within 7 days,
get the paperwork through and immediately cancel!!!
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a friend of mine uses a tactic to get discounts on electrical/electronic items.

When the salesperson asks about insurance he says 'yes, but only if you give me a discount on the item' - once he gets his discount and gets home he cancels the insurance.........
Well??? I'm glad I took out insurance on my loan lol.... because within 6 mnths of taking it out, I became very very ill lol.... the insurance paid off the loan :)
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