We took out a secured loan last Sepember of £30,000 along with this we took out insurance that half was refundable if it wasn't used (almost £6000). We have just paid the loan back but have been told there is nothing we can do about the insurance preimium, we have ended up paying over £36,000 back along with payments of £1,685. So to borrow £30,000 for 5 months has cost us almost £8,000.

Surely there is some law about the insurance. Yes, we can understand that we have to pay early repayment penalties but to have no claim on an insurance payment that will never be used feels like robbery!!!

Can anyone give any advice please

Why did you take out such an expensive insurance policy? Was it a condition of securing the loan?

That's a curious situation - I would have presumed the loan was secured against assets, not an insurance premium.

At this stage it's definitely worth checking up on the small print - you've suggested that half was expected paid back but wasn't, so you'll definitely need to enquire about this with the insurance company.

It may also be worth contacting the Financial Ombudsman:
Financial Ombudsman Service

Hope that helps, and best wishes in getting this resolved.