Forgot to stop Direct Debit for Life Insurance
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Greenroomman
Posts: 1 Newbie
I had my life insurance policy renewed and the process involved creating a new policy with a separate d/d. The old policy was cancelled beginning of 2015. However I never cancelled the d/d and only now, a year later, realised that it's been going out of my account.
The insurance company said they will only refund the past two months as it was my responsibility to cancel the d/d. Is this legal? They've taken money for a policy that doesn't exist!
The insurance company said they will only refund the past two months as it was my responsibility to cancel the d/d. Is this legal? They've taken money for a policy that doesn't exist!
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If it is a direct debit it means they have been asking for the money for a policy that does not exist. They are in the wrong so should refund. Tell your bank you want a direct debit guarantee refund as the insurer was not authorised to take the payments and have refused to refund. http://www.directdebit.co.uk/DirectDebitExplained/Pages/Incorrectpayments.aspx0
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The insurance company said they will only refund the past two months as it was my responsibility to cancel the d/d. Is this legal?
Yes it is legal. It is your responsibility to cancel the insurance. The insurance company is not allowed to without your permission (or due to non payment)They've taken money for a policy that doesn't exist!
it did exist.
It is very rare for a life policy to be renewable nowadays. It is more likely it was a replacement. So, effectively you had two. If the replacement involved an adviser or agent then they are required to tell you to cancel the old policy. Although again, they cant cancel it for you. Only you can go that. You could check with the agent/adviser to see if they did tell you. If you didnt use one then you get reduced consumer protection as DIY means DIY.
A direct debit guarantee claim is likely to fail as you never cancelled the direct debit and the insurer still had the old policy in force.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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