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Home insurance linked to mortgage, thousands of pounds worth of premiums added to mortgage

(10 Posts)
justkeeponsmiling Fri 11-Mar-16 16:28:37

So, not sure if anyone can help me with this.
I took out a mortgage 10 or so years ago with the Halifax. At the time they also sold me home insurance which has been running alongside my mortgage ever since. I thought I was obliged to have this from the Halifax (I was really young and not very savvy wrt financial things then so didn't question this).
I realised lat year that I did not need it, and certainly not with the Halifax. I took out a new home insurance from a different provider and cancelled the eye-wateringly high insurance with Halifax. Up to then I had been making my insurance and my mortgage payment in one single monthly payment so I expected this to go down. When it didn't I contacted the Halifax and asked them why. It took hours to get an answer but eventually I found out that apparently they added my yearly premiums to the overall amount of the mortgage, several hundred pounds every year. So even though I don't owe them any money now, obviously my mortgage had thousands of pounds added on to it. This was absolutely not made clear to me when I took out the insurance.
Does anyone know if there is any point in complaining to them?
TIA

LineyReborn Fri 11-Mar-16 16:30:52

If they charged you after you cancelled the policy, and you can prove it, they will owe you the money back. Surely?

Yes definitely complain. You will have been paying interest on that money.

I doubt the ombudsman would think it fair practice. But you must go via the internal complaints process first.

justkeeponsmiling Fri 11-Mar-16 16:36:28

Liney they said that they calculated my premiums every year but that instead of breaking them down into 12 monthly payments they added the whole amount to my existing mortgage and re-calculated the overall mortgage amount. I didn't notice as I was making one montly payment to the Halifax and I just assumed that they would use so much of it every month to pay the insurance and the rest was my mortgage payment, if that makes any sense?

justkeeponsmiling Fri 11-Mar-16 16:42:21

Moving thank you. I am so mad with them, but even more so with myself!

AnchorDownDeepBreath Fri 11-Mar-16 16:45:19

Do you have any of the paperwork? Via email or anything?

I imagine the FOS will think this is unfair but any paperwork you've got will be valuable.

justkeeponsmiling Fri 11-Mar-16 16:52:15

Anchor , I don't have my original insurance contract with them.

justkeeponsmiling Fri 11-Mar-16 16:54:32

I have my original mortgage offer but not the original insurance documents.

Tiggeryoubastard Mon 14-Mar-16 18:06:46

The Halifax are dodgy fuckers anyway. They give your personal details to all and sundry. Lying bastards, too. I would urge anyone to avoid them.

Giantscr1 Fri 16-Sep-16 20:36:28

Exactly the same as happened to me, have made a formal complaint today after 2 hours on the phone they offered me 75 pound good will gesture and 7 pound to pay for my phone call on condition I accepted the complaint closed!!!!. I refused and intend to persue the matter. Have you had any luck with your complaint about this immoral possibly illegal scam

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