Bank charging for processing buildings insurance

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passat

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I recently renewed my Buildings/Contents insurance online and got a very good price in comparison to last year. I sent a copy to my mortgage provider/bank with their name noted on same for mortgage purpose. I have now recieved a letter from my bank stating they are charging me E30 for processing same. When i questioned them about this they informed me that if i change insurance providers more than twice that they now have a E30 fee for processing same even though this has never happened in the past..so much for shoping around to get a better deal, can this really be a legal thing for them to do i have never heard of this before any opinions would be grateful

Thank you
 
Whenever I renewed my home insurance there was a clause to say that if your mortgage provider charged a fee that they (the insurer) would pay this on my behalf up to a certain amount. worth checking out...
 
Never heard of such a processing/admin fee. Maybe it's stated in the terms & conditions or whatever but I would certainly challenge it if it was me. In my opinion it sounds a bit anti-consumer. Who is the lender and what, if anything, does your mortgage agreement say about this?
 
Just to clarify - did you change insurers more than once in a single year in case that matters? Or are you sure that this fee is not an admin feel payable against the original policy taken out with the lender because you replaced/cancelled it within a policy year? The latter is common enough with insurers. In short are you sure that the fee is a charge for just switching to another insurer?
 
KBC Bank charge €30 Admin Fee to process House Insurance sent to them.

They have charged me this for the last three years, but I have changed Insurance provider each year. I don't know if they still charge it if I stayed with the same company for two years or more. Each year it has been more than worthwhile for me to change Home Insurance Co's.

KBC do give the option of paying the €30 fee directly to them or have it added to the outstanding balance of your mortgage for the duration of the mortgage.
 
Bank charging processing fee

Thanks everyone for responding to my post, and thank you Clubman. In answer to your queries (1) yes it was the KBC bank. (2) No there is nothing in my mortgage agreement to state there is a fee for processing. (3) I have not changed Insurance providers more than once in any year. I will say though that for this past 2 years when i posted the note of interest to the KBC bank they would write to me approx 4 to 5 months later stating that i had not sent them a Note of Interest, resulting in me having to send the copy by registered post. However as Fat Boy said i do save a great amount by shopping around but now they are having their slice of that as well.
 
I would contest the charge. How can it possibly cost 30 bucks to update a screen with the new company details? As a matter of interest, if you take insurance with KBC do they charge this fee? Banks who arrange the insurance normally get the commission given to brokers, so it may be that the bank is recovering a loss of this commission. with a fee. I would complain, this fee (for whatever service) is excessive imo.
 
I agree. Based on the info posted so far I would also challenge the charge. It seems a bit unreasonable to me to charge this just to process a chance in insurance cover. I've never come across it before with a number of lenders.
 
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