Springleaf Financial - Springleaf Insurance Rip Off

Aug 22, 2011

On June 2011 I took out a loan with Springleaf financial and at the time signed up for the involuntary unemployment insurance for an addl 234.02 plus interest over the 37 month term at an annual percentage rate of 32.69%.In this economy no one has a secure job (I was at mine for 7 years).

Three weeks ago, out of the blue (August 2011) I was laid off of my job and filed a claim with the Springleaf insurance, Yosemite Insurance Co. and was denied due to a 90 day waiting period that no one ever told me about, but that is in the second of 5 page insurance document. I was mortified. I thought at least my loan pmt would be covered while I look for new employment.

To add salt to the wound, I was told that although I would recieve a refund of the policy premium of 234.02, my payment would not go down because they will still charge the interest on the 234.00 of 32.69% for the term of the loan.I feel the failure to disclose this "waiting period" was unfair and should be unlawful.

6167041
Review #257065
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malinda lockett

Aug 02, 2012

The same thing happen to my husband. He worked at his job for 1yr and was laid off they told him about the insurance never said anything about the 30 day wait period and they want pay it and that stinks. If they going to tell you about the insurance they should also tell you about the clause as well. So be aware before you take out a loan read read read... cause they want tell you everything.

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Whatever

Feb 10, 2012

You have to realize Springleaf DOES NOT approve or deny these claims, they are nothing but the middle man. I suggest taking your refund money and applying it to the principal loan balance. They will not make the % off that portion.

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Me

Jan 12, 2012

All Insurance policies have stipulations that the company may or may not tell you about at the time of purchase. You have to PAY ATTENTION!! Also if you have full coverage auto insurance all you have to do is call springleaf and let them know about your coverage and they will remove it from your loan. If you don't show proof of coverage they don't know that you have it!

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Skorpyun

Sep 07, 2011

These people are currently trying to pull the same stunt with my loan. They asked for insurance by a certain date, I obtained it, full coverage, with them named as the loss payee yet they still jacked my loan up $500 + interest claiming they reserve the right to obtain it. So now I have two insurance policies on the same car? Of only one in which I authorized and obtained? Insurance fraud? Consumer fraud? IS THERE A LAWYER IN THE HOUSE? I THINK WE HAVE A CLASS ACTION OVER HERE!!!

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carpediem

Aug 22, 2011

I agree with you! If a company accepts a premium payment for insurance, why do they need a 90day waiting period? If it's because it has to go through underwriting, then they shouldn't get to take you money until they approve and activate your insurance. This truly sucks! Hope you find a new job soon, though.

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