Forced placed insurance

by Kathy

The bank placed insurance on my financed car from July 1 to Dec 1 because I didn't have coverage. Annual cost was $2700. I got my own policy on Dec 1 and sent the bank proof.

The bank is only refunding me $900! They can't explain where they came up with that figure. Where would I find out? The insurance policy or my loan papers? Thank you very much.

Kathy


Answer:

Hum,

The bank must explain how this charge happened. If you do not have coverage, banks can do what they did to you. This insurance is very expensive, so you might be in for a surprise. However, you do need to make sure that you are being treated fairly. The only way to ensure this is to have a correct explanation of fees.

As far as contacting insurance, you are going to have to deal with your bank. The insurance company makes you pay, but the bank is the insured, not you. In other words, this policy protects the bank so the bank is the insured. The insurance company does not have a duty to you, so they will not talk to you about fees or anything. You should try anyway, but I just want to give you the heads up.

Unfortunately there is not much you can do other than keep asking your bank or report them, but other than that, there is not much you can do.

Good Luck,
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