Washington Mutal - Sold and Collected Premiums For Non Existent Insurance Policy

Complaints.com received the following consumer message on September 12, 2002:

From:

RE: Washington Mutal - Sold and Collected Premiums For Non Existent Insurance Policy

On a loan that was paid off earlier this year, I had taken out a life insurance policy for payoff of the loan in the event of death. The premiums were being deducted almost back to the original loan date (1992). I found out last year the there was no policy in tact, and the premiums although being collected were being applied to my principal (not entirely bad). However, my monthly statments and yearly account analysis showed that there was a policy, and it did not reflect as payment on my principal, but rather payments toward the policy. Needless to day, eventually after much legal manuevering by WAMU, they agreed to pay back the premiums with a small penalty