Loan Company denied disability Insurance to pay loan while out, but I had the coverage and have been paying for it. I verbally asked for the loan papers twice. Got behind and got a big surprise. They sent past due to the bureau.. Is there anykind of advise or statues someone can give me. The loan company is under the federal and state laws.. I'm trying to put together a plan and coming up with a block. Writing letter to Corp Office blasting them, sending letter to state Insurance commissioner, FTC, AG, credit bureaus. I wouldn't been deliq if they've given me the forms. Any Help or advise is much appreciated.
1.) Do you have a receipt for payment of disability premium? 2.) What loan papers did you ask for, or did you mean the papers to file a claim? 3.) Do you have any kind of notes or documentation of the request, such as a person's name that you spoke to and a date and time? While it would feel great to send a letter to the corporate office "blasting" them, I have to remind you that it won't be constructive. I'm sure this all can be cleared up; it seems to have just been a misunderstanding.
If they sold you the insurance, billed you for the premiums, and now claim you have no coverage, or just don't seem to be able to process your claim, or even send you anything to allow you to submit a claim, contact an attorney who deals with consumer fraud.
I've paid disability premiums for 3 years, and this is the first time i've needed them. I got several names I spoke with at the office. They never have sent me the forms. I plan on contacting the State Insurance Commissioner and let his office know they are selling insurance that is impossible to file a claim to use. Stir up the pot and have them investigated. Sqeak I was talking about papers to file a claim. This is not right
Go down all paths. Most of these policies border on being a scam, with fine print exclusions, and are sold by lenders for the commisions they bring them, but you aren't even running into fine print that if you can't even make a claim. Can you document when you first tried to submit a claim, and have you sent them anything in writing? Document every communications. and send confirming letters to memorialize any phone call, summarizing who you talked to, and what they said they would do. Send all letters CRRR. You may have to take this to court to get what you paid for, but settlements on insurance claims involving acting in bad faith have resulted in treble or other punitive damages plus attorney's fees.
ontrack thanks..... Yeah I want to utilize all options. My most pissed off thing is they reported this to my Bureau, and if they'd did the right thing my premiums would've been paid while I was out of work. You bring up a good point on the Scam smell, because it seems thats what it ultimately is. Sell it and hope no one has to make a claim. The bad thing is I didn't send anything CRRR, was thinking it would come to that "Then". Going to Dispute my bureau and go through the process now. The local office is in diff state as Corp, trying to see whats my best bang.. Sending all stuff to the "lazy,slow, laxed,bumbling" local office to get them to trip up versus the corp office. But then again I wan the Corp to Know that i'm going to looking into their practices.. Confused
I think disputing to a CRA will be ineffective at this point. The key issue is the money. They took your premiums, they didn't respond to your claim, and therefore your account payments were not covered by the insurance you had paid for, and they still want money from you for amounts the insurance should have covered. The more this stretches out, the more likely they will win, both damaging your credit, racking up fees, keeping the premiums, and claiming they have every right to do it all. The more they damage you financially, the more you will believe there is nothing you can do. Contact an attorney immediately. They have already breached your contract, possibly with intent to defraud. The longer you wait, the more it will cost you, and the less likely you will receive any compensation for their damage or their failure to pay according to the insurance, or even a clean CR. Remember, insurance is basically a contract that gives you the right to sue if they breach it. If you aren't willing to sue, and they are willing to breach, you just paid premiums for nothing.
Ontrack.... Thanks so much for your help... They did the right thing and, erased derog...and i received a check for the premimums I paid 3 months worth!!!!! Thanks again
Was there a policy in place, for which the premiums were being paid, or had they failed to actually open an insurance policy, but billed for and received the premium payments as if they had? Did they provide coverage for your loan payments as per the terms of the policy?
didn't allow a claim to be filed, repeat attempts. fired that damaging letter off, threaten to contact, AG, Office of Consumer Affairs and Insurance Commissioner. Got Money I paid, plus back pay of 3 months, so actually they paid me 1500.00 more than should've. And covererd the loan payments... Information is powerful.. Thanks again
Keep your records, paperwork, and letters. After one screw-up, whether deliberate or not, you wouldn't want some loan "shortage" to later end up in collection.
