Redeye Jedi

Im in a bit of a situation and i need some advice.....

Ive had my car insured through a broker for 6 months now, at the start of the policy i went in to the office of this broker and paid a deposit (approx 2.5 months) which i understand is standard procedure. At the same time i filled out a direct debit mandate for the monthly payments which all seemed fine. At the end of last month (5 months into the policy) i get a phone call to say that NONE of the direct debits had been taken, this apparently is because the insurance provider wont allow me to pay via direct debit!! Taking this into account the broker then asked me to pay the remaining amount of the policy immediately (£700), i promptly told the guy i couldnt manage to pay it all at once and he agreed to let me pay it £200 at a time until it was paid... I then provided my card details (visa electron) to pay the initial payment of £200, i was called the following afternoon to say that they were unable to take payment over the fone using my card and i would have to go in and swipe it!! With them only being open Monday to Friday its impossible for me to go during my 30 min lunch so on Friday they agreed to accept a cheque for the £200.... All seems fine....

This morning i asked by my manager to go into a private room for a chat, he then proceeds to tell me that the insurance broker have phoned the accounts dept at work and threatened to sue me!!!

I have a couple of questions relating to this that i really need to professional advice on.

A. As i have filled out the relevant paperwork from my end payment details etc, do they really have any grounds to sue me?

B. Im now 6 months into the policy and due to all this hastle want to cancel it, what sort of implications will this have?

This is the first time ive taken out car insurance and really cant believe the way ive been treated! It makes it all worse that its the same broker as work use...

Redeye Jedi

BTT Anyone?!? Im desperately trying to get help on this...

SapphyMike

if you want professional advice, speak to the Insurance Ombudsman

0845 080 1800

Or

Association of British Insurers

020 7600 3333

Redeye Jedi

Excellent!! Thank you!

BlueSmoke

Let us know how you get on mate, that's well out of order.

Redeye Jedi

Right just spoken to Insurance Ombudsman, they told me its as much my responsibility to check the money is going out as it is theres to check its coming in!! I really feel like ive been treated un-fairly! I dont see why i should have to make up for someone elses mistake!!

BlueSmoke

Did you tell them about how you agreed payments and they took your card then said they couldn't, and they took your cheque but then still threatened to sue you?

What did they say to this?

Redeye Jedi

Yer gave em the full story! Basically said it was as much my fault for not noticing that the money hadnt been going out of my account!! Ive just been quoted alot cheaper from elsewhere so im now gonna get a confirmation quote and then im gonna fone em up and tell em to stick there policy where the sun does not shine!

BlueSmoke

They will still charge you for the money owing mate, and then you'll be paying 2 policies and maybe even a cancellation fee.

I'd go to the citizens advice to be honest pal mainly over the thing with taking your card and the cheque then still saying they'd sue. Surely you had a letter after 3 months advising you your premiums have not been paid? If not there must be some fault of theirs in there. They have a duty to notify you.

Redeye Jedi

No ive had no correspondance to say there was a problem with the payments! Well not until 5 months into the policy where i was called at work to tell me!

Sean_RS

Sounds like youve been treated a bit poorly to say the least... however legally i think you dont really have any defence.

boost mad

iTrader: (8)

A) they have nothing, everything had been done that u can to pay, they shud of told u before 5 months that u couldnt do direct debt, they shud of contacted u after they tried to take the first payment

b) im asuming its a year policy? if it is there will be a cancelation fee, usualy a month or 2 worth of payment


imo

Redeye Jedi

Well looks like im set to pay what i owe and cancel this policy! Will i lose the 6 months NCB that ive aquired and have to start a fresh??

Clare

Been there myself in the past, was treated so poorly by an Ins Company I told them to stick it 6 months into a policy. As I had been paying monthly they tried to charge me the remaining policy fee, I told them to get lost and I never heard a thing from them. Im not saying that you wont but thats my experience.

My personal advice is when you get home this evening, sit down in a calm frame of mind and write a well drafted letter advising them that due to poor treatment, failure to notify you etc.... you will be cancelling your policy with immediate effect, you will return the certificate of insurance and bid them a good day

Redeye Jedi

Yer thats what im planning to do! Problem is, other than the £130 i paid as a deposit, they havent had any more money from me! So im gonna have to pay up to the current month before i cancel it i think?!?!

Clare

Ok, well seeing as you want to walk away from this with as little grief as possible and without the threat of further claims for owed money..... In your letter, put something along the lines of (replace with exact figures).
As my total 12 month policy quoted by yourselves was £700, I agree that aside from the poor Customer Service I have recieved, I have still had 5 months Insurance with yourselves and am prepared to cover the cost for this period of time, there for please find enclosed a cheque for the amount of £161.65 (which is £700 / 12 = £58.33 per month, 5 months @ £58.33 = £291.65, less your deposit of £130 = total amount outstanding £161.65).

Most Companies who can see they are partly at fault would rather come to an amicable agreement with you than resort to court action, and if you are prepared to cover the cost for the service you had from them they have very little reason for persuing you further - plus any money they get from you is better than nothing in their eyes.

Good luck with it and remember to think calmly when writing your letter.

Redeye Jedi

Thanks very much Clare!! Thats the sort of answer i was looking for! I really appreciate ur advice and i will take to writing the letter when i get home this evenin!!

BlueSmoke

To be honest mate, as said above you did all you could to make sure payments went out. They have a responsibility to advise you of how you can and can't pay your policy from the off.

Also, they can't just sue you without going through the proper procedure of sending you a letter to advise you're behind on payments and then go to a default etc which also requires a letter is sent, as you legally cannot be defaulted without being informed.

How old are you by the way?

Redeye Jedi

21