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  1. #1
    Join Date
    Jan 2010
    Posts
    7

    Default Credit Life Insurance - is It Mandatory

    I recently purchased a new vehicle in Florida not too long ago and I have a question regarding credit life insurance for a car loan.

    First, is credit life insurance mandatory? I would imagine policies vary from bank to bank. But I already know my lesson on credit life insurance: Never buy credit life from a dealership.

    Now on to the facts.

    I financed my new car through my bank (and I did it at the bank (no financing at the dealership) by getting preapproved before I went shopping - that way, I know what I can spend and what payments can fit my budget). Today when I received my loan papers I noticed that my payment was a lot larger than what I expected.

    So, I plugged in the numbers - amount financed, rate and number of months - into a loan amortization calculator I have on my computer. (I won't show you actual numbers as this is a public forum and the potential for being personally identified is risky). It turns out that my payment is much lower than the payment that is shown on my loan paperwork.

    So, to make a long story short, I had credit life insurance sneaked into my new car loan without my consent which has sent my monthly payment higher than what I expected. I like my new car and I intend to keep it and make the payments on it of course but I do not want to be forced to have to end up selling it privately so soon.

    Do I have any legal recourse as to the credit life insurance being sneaked into my car loan without my permission? Any response would be greatly appreciated.

  2. #2

    Default Re: Credit Life Insurance - is It Mandatory

    Check the copies of everything you signed. If they did indeed sneak it in and you didn't sign for it, than of course you can get it removed. This is one of the oldest tricks in the book for dealers.

  3. #3
    Join Date
    Jan 2010
    Posts
    7

    Default Re: Credit Life Insurance - is It Mandatory

    Quote Quoting HavingQuestions
    View Post
    Check the copies of everything you signed. If they did indeed sneak it in and you didn't sign for it, than of course you can get it removed. This is one of the oldest tricks in the book for dealers.
    Hi, I checked everything and there is nothing in my paperwork that I authorized credit life insurance. As I mentioned previously, the financing was done right at the bank - never at a dealership.

    As you mentioned I could get it removed. Is it too late as I just received the loan papers today which shows me my monthly payment amount?

  4. #4

    Default Re: Credit Life Insurance - is It Mandatory

    Its not too late if you didn't sign for it.

  5. #5
    Join Date
    Jan 2010
    Posts
    7

    Default Re: Credit Life Insurance - is It Mandatory

    Quote Quoting HavingQuestions
    View Post
    Its not too late if you didn't sign for it.
    I called and left a message for my loan officer late this evening and hopefully I should hear from my loan officer soon. I'll keep you posted!

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