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Help - Home Insurance Not Trading but want money!!
fairy_wings_3
Posts: 7 Forumite
In Feb 09 I took out home insurance with a company. I wanted to cancel this insurance so I wrote to them in April twice, but i did not recieve a response. Finally last week they emailed me back and announced this company has ceased trading.
I cancelled my direct debit and then I got a letter from a credit company sending me a default letter saying I owe them the remainder of the years payments £91.
But how can they expect me to pay for a service that I am not recieving? Regardless of the fact that I wanted to cancel it, how can the credit company charge me this money when I am not recieving a service because the company does not exisit?
I have tried to contact the ceased company but they just have a voicemail on their phone and im really worried!
Any advice would be great! Thank you!!
I cancelled my direct debit and then I got a letter from a credit company sending me a default letter saying I owe them the remainder of the years payments £91.
But how can they expect me to pay for a service that I am not recieving? Regardless of the fact that I wanted to cancel it, how can the credit company charge me this money when I am not recieving a service because the company does not exisit?
I have tried to contact the ceased company but they just have a voicemail on their phone and im really worried!Any advice would be great! Thank you!!
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Comments
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It sounds as though the credit for paying monthly was given by a different company to the insurer. In this case, there would be two separate contracts - one with the finance company, the other with the insurer. The finance company have probably already paid the insurer the full sum so they want to recover their money.
A similar thing happened a few years ago where people had bought sofas from a major chain that went bust. The finance was through another company so they still had to repay it.
What is the name of the insurer and the credit company?0 -
I would email them a copy of your letter cancelling the policy and also a copy of the email sent to you, then just wait for a response. I totally understand what your saying, i wouldnt want to pay either. Are you sure its for the remainder of the year and not a cancellation fee.
Which would be normal unless yu cancelled it within the 14 days cooling off period.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
Im sure it was 2 separate companies, I took out the insurance with ONLY insurance and the finance company is Premium Credit Limited - Only is underwritten by Legal and General so I have emailed both PCL and Legal and General with the copy of the email saying that ONLY doesnt exist, not sure what else to do?0
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Are you sure it was Legal & General, not LEGAL INSURANCE & FINANCIAL SERVICES LIMITED? This is Only Insurance Limited's previous name.
Bad news is that ONLY INSURANCE LIMITED are in administration. They have also applied to cancel their FSA registration.
It appears a new company has been setup called ONLYINSURANCE.COM SERVICES LIMITED. As they are a different company, your contract is probably still with the company who are in administration.
I haven't been able to find anything out about PCL.0 -
It was definately Legal & General - it says on my policy
policy underwritten by: Legal & General Rainbow Select EDI
The credit is with Premium Credit Limited, Premium Credit House, 60 East Street, Epsom, Surrey, KT17 1HB.0 -
If I were you I would ring Legal & General for advice as it is one of their policies.
Premium Credit are a finance company and they pay for you policy on your behalf and then take the payments monthly from you.
They will chase you for the money as they have paid it in full for you and this is a separate contract to that of your Insurance.
You have signed up to a credit agreement with them and as you have now cancelled the direct debit they will want the payment.
Ring Legal & General straight away & see if you can sort the cancellation with them but in the mean time you will need to pay premium credit and then sort outr any refund with Legal & General.0 -
Thanks for all the advice. I have also contacted Consumer Direct who offered some good advice. I have written to PCL and Legal and General stating the facts and issues and that I will not be paying for a service that i am not able to recieve. I have sent it recorded delivery so hopefully they will see im serious about this!0
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I have had a reply from Premium Credit -
Thank you for your email. I can confirm that Premium Credit Limited have cancelled your Credit Agreement as per your request. Please can you contact the Insurance Company in respect of cancelling your Policy. Unfortunately Premium Credit do not hold details of your insurance company but this can be obtained from your broker Only Insurance.
What does this mean exactely? Does this mean they have cancelled it?0 -
Obviously they have cancelled your credit agreement
They just want you to cancel your policy (again) with your insurance company as they cannot do this on your behalf,(they havent got the details anyway)
i would do this even if its just copies of your original cancellation and then all should be well.make the most of it, we are only here for the weekend.
and we will never, ever return.0
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