settlement on an insurance policy

[howell]

we asked for a settlement figure to cash in an insurance policy which had a loan attached the conditions on loan was when policy was cashed in the settlement figure would be less loan settlement we got settlement figure and accepted that . 3 years on we get a letter saying we were over payed by �3k and we must pay it back we have had no statements on the loan for 3 years since the settlement

have we got to pays this back as we have been shown no proof what say is correct

[jason1980]

3 Years on is such a long time and it shows flaws on their part. I wouldnt be surprised if at the time they didn't allocate the settlement figure to the loan account to reduce it which instead leaves an outstanding balance, but when it is reviewed at a time when the loan account was expected to close - they've noticed something unusual. Is the overpayment amount, the amount that was left outstanding on the loan before cash in?

My advice would be to find your policy terms and conditions which states the conditions you mentioned. If you have lost them, then ask for their copy at the time you signed. They would still have this and it's your proof that you are right.

[themas]

As jason sas, you need to get confirmation of the facts if you can. Once you have this, if the company won't budge you could go through their formal complaints procedure and then to the insurance ombudsman (or whatever body regulates them) if necessary. However, it might be that you are legally liable if they did make a mistake and overpay you.