If insurance is added into a loan, does the bank add it to my balance again each month? For instance, if I borrowed $10,000.00 then two weeks later my balance is changed to 10,008.16 for the insurance premium, can they add this even if I declined insurance and it is reflected in paperwork?
Credit insurance is typically paid for out of the loan proceeds, so it is in the loan amount on which interest accrues. If you canceled your coverage, this may be part of the premium cost that was owed between loan closing and when you canceled. That could be a justified charge, unless a full refund was required. Essentially you were covered for a period of time. If you question the balance statement, call your lender.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Credit insurance is typically paid for out of the loan proceeds, so it is in the loan amount on which interest accrues. If you canceled your coverage, this may be part of the premium cost that was owed between loan closing and when you canceled. That could be a justified charge, unless a full refund was required. Essentially you were covered for a period of time. If you question the balance statement, call your lender.
