I bought a motorcycle this last fall and got a loan from Affinity Plus Credit Union. Since it was fall, and it turned too cold to ride about the next day, I parked it and pretty much put it out of my mind. Early January I got a letter from Affinity Plus saying they had not gotten proof of insurance. Not surprising, I had not placed insurance on the bike. I had forgotten all about it. The letter said I needed to get insurance placed on the bike immediately or I would have to pay CPI, Collateral Protection Insurance.
I stopped into the bank the next day and told them I had forgotten about the insurance and that it would be placed on there the next payday. (a week and a half) They said "That is fine." Payday came, I contacted my agent, and though it took a few extra days of figuring out what options I needed and getting him some pictures, the insurance was placed.
Now I have gotten a letter from the bank saying they have billed me... Actually added directly to the loan so they also collect interest on it... $730 for insurance from the time I purchased the bike through the time my own policy took effect.
I realize that I made an initial mistake, but as soon as I was informed of the mistake I took care of it. To be billed $730 for insurance for just over a month of "coverage" is a total rip-off. It only costs me $170 for a full year of full insurance.
I have contacted the bank and they won't credit me the money back. But, I am still working on this.
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