Reply to: Budget car insurance

[NoddY]

At some point in the past you have signed a continuous authority credit card withdrawal. This gives less protection than a direct debit and are harder to cancel. You have a direct relationship with the insurance company, and the credit card company should not be involved. With direct debits, the relationship is with the bank.

[scooterscot]

I should learn not to use my CC. Cash remember that Scooterscot... ah lovely.

[King Cnvt]

You are all wrong.

When you took out your 1st insurance, the T&C's would state that you agree to an automatic renewal against the CC you used. This is now std practice when you shop by CC and solicitors, CC companies can't do tulip. You agreed to it when you signed the insurance mandate.

That's why the CC company can do sod all about it. And yes, it is an automatic agreement to renew.

You should learn to read the small print.

[scooterscot]

OK they just given me my money back and there £20 short. So I called them, and it turns out it's a cancelation fee for the one day my policy was automatically renewed. A renewal I did not request.

[Troll]

How many does that make now? Mine is nearly 11, is that a new club?

is it a Landie?

[daviejones]

Ahh excellent...another member of the 10+ year old 4x4 club

How many does that make now? Mine is nearly 11, is that a new club?

[Troll]

(yes, I got an ancient Land Rover, and it was great fun!).

Ahh excellent...another member of the 10+ year old 4x4 club

[barely_pointless]

Funny you should say that as I do the opposite - avoid setting up DD's for anything except essentials.

The theory being, with a CC, you have more buyer protection and can moan to the card co.

I suppose this is now out of kilter due to:

1) The relatively recent penomenon of automatica repeat billing.
2) Card co's seem are not as helpful as they used to be in these matters.

I would revert to cheques but they are gradually being phased out.

Ho hum.

bang on target clippy, my first ever project was a BACS facility yokey bob thingey for a manufacturer on the M4 Corridor and it taught me a few very wise lessons, DD's are structured in favour of the debitor, not you as a consumer, the agreements are often difficult to cancel as they exist outside and separate from the actual financial liability that may or may not have occured (are you getting me here ?) , the reason banks are reluctant to cancel a DD before getting assurance from the service provider (ie. the Insurance Co etc) is that there may be an outstanding amount owing that they would then have to spend time chasing, and of course as a consumer you could dispute.

DC's are fine , DD's should only be of necessity, e.g Mortgate and Health Insurance only.

Read the small print, it is often common for example a DD to lie dormant for a number of payment cycles from the agreement date, and then be debitted in full (i.e. aggregate amounts of all past cycles) to collect the amount owing - nice eh, 200x4 = 800 odd coming out at once like a big surprise, and the cruel twist in this ? The Insurance company who did this to me had to refund me the past DD's as I argued that I was not covered during this time and they could not prove intent otherwise, inactual fact they discounted the term on agreed amount.

Another thing to think of is that a DD may continue to be collected when the product is no longer of any use to you (i.e. car insurance , travel insurance, etc)


CC's used to be (are) a good thing, read the 1974 consumer credit act, it's there to protect you and I have used it at least twice with (again) insurance companies.

I sold my car at month 8 of a 10 month DD car insurance agreement with can't recall now, and cancelled my DD, they sent me a wonderfully bluffy legalise letter detailing the road traffic act of blah blah, and that operating a motor vehicle or horseless carriage on the queens highway was against the law and punishable by............blah blah you get the idea.

I wrote back saying , thank you for the very informative blurb of the law, which is not your duty nor your responsibility, I no longer own the car, and if you do not refund the last two debits, I shall under the 1974 credit consumer act demand a full refund because they had mis-sold the insurance to my wife , providing 10 months instead of 12.

result! cheque in mail for last 2.5 months!

[Clippy]

Agreed. I try to avoid using my credit card whenever dealing with someone who may demand a repeat bill.

Funny you should say that as I do the opposite - avoid setting up DD's for anything except essentials.

The theory being, with a CC, you have more buyer protection and can moan to the card co.

I suppose this is now out of kilter due to:

1) The relatively recent penomenon of automatica repeat billing.
2) Card co's seem are not as helpful as they used to be in these matters.

I would revert to cheques but they are gradually being phased out.

Ho hum.

[BoredBloke]

I thought that there was a principle in law that you could not take a lack of a response as agreement.

Also, from what you have said, it sounds like you have recently moved (redireceted mail). If this is the case then surely your details should have changed and their quote should be adjusted accordingly.

[scooterscot]

Is this a new PFI scheme?

Unless the police have awarded them a contract, then no, it isn't legal. In fact it's illegal. False representation of the facts, or something along those lines.

Well I've not found the small print yet but the facts are these:

They sent me a letter warning me they would automatically re-new if they did not here from me and debit my credit card on 16th Aug.

In fact the took the cash from my account for the full amount 10 days before the above date.

I received the letter 2 or 3 days after the debit.

The re-direction of my mail did not catch up in time to allow me to take action.

You can't win!

Next time I'm writing a cheque.

I usually like to avoid using the credit card but tough luck for folks like us, the fact is every other business out there deals with credit cards and not much else.

They should not be allowed to keep my details.

[Sysman]

Too many people keeping your credit card details these days. If you pay with a one-off payment they shouldn't be allowed to keep your payment details.

Agreed. I try to avoid using my credit card whenever dealing with someone who may demand a repeat bill.

On insurance matters, I used a broker when I was last in the UK. They make decent money out of it, and if you find a good one, they'll save you not just the hassle but a good few quid as well.

As a case in point, for many years I had fancied having a second motor for fun. All the insurance companies told me that for a second vehicle I needed to start from scratch for my no claims bonus, making it an expensive exercise when all I was thinking of was an ancient Land Rover.

Enter an insurance broker - I was prepared to go for limited mileage per year to get the premiums down, but the broker got me unlimited mileage and fully comp for something like 140 quid (yes, I got an ancient Land Rover, and it was great fun!).

[Sysman]

... and will not refund me until they see the new cover note. Is this legal?

Is this a new PFI scheme?

Unless the police have awarded them a contract, then no, it isn't legal. In fact it's illegal. False representation of the facts, or something along those lines.

[VectraMan]

Too many people keeping your credit card details these days. If you pay with a one-off payment they shouldn't be allowed to keep your payment details.

[KentPhilip]

Thanks for the advice guys. I called the credit card company. They tell me they've got to honour the agreement. So the first time I handed over my credit card details meant they can continue debiting my card for how long? I could be dead they be making a tidy little savings racket.

What "agreement"? You have no agreement with your credit card company to pay money to your ex-insurance company.

Instruct your credit card company to initiate a chargeback against your insurance company with immediate effect. If they refuse take them to the small claims court.