Budget (Avon) DD on bank statement

Scots · 11 February 2013 at 12:40PM

Checking my bank statement recently I noticed a DD for £3.99 to Budget (Avon). In fact I had two lots coming off my account for the past 6 months.

Not sure what it was for did some interweb research and discovered they are linked to Budget Car insurance policies I took out last February.

Apparently on the Budget website there is a pre populated tick box which has to be unticked otherwise you are sold a personal injury insurance policy. It's not something I would have wanted so don't know how I missed it. The insurance is free for 6 months then the payments start.

Anyway, I phoned Avon Insurance this morning on 01789 415 050 and a very nice lady cancelled the policies no problem, then passed me through to Budget who maintained it was all legit and my fault for missing the tick box, but they were happy to refund the monies already paid.

So all is well, but what a scam eh ?

tinkertinker · 11 February 2013 at 7:20PM

I've just had the same problem - we couldn't work out why Budget (home contents insurance) payments were still coming out of our account, when the policy ended in October 2013.

As soon as I told the operator it was for £3.99 they knew exactly what I was talking about and put me through to Avon which they tell me is a separate company and policy that stays with me for life, even after I leave Budget???? Apparently we didn't un-tick a box to purchase some kind of personal accident insurance, and the payments only start coming out after 6 months.

After Avon cancelled the policy I complained that I should never have had the policy, so they transferred me to a 'supervisor' who turned out to be back at Budget - they offered me a refund of the payments made since we closed the policy (Oct-Feb) as a gesture of goodwill.

So, as far as I know I had no knowledge of buying this, but Budget Insurance gave my payment details to this other company to purchase it in monthly instalments. I've never received any sort of paperwork or information about the policy, (believe me I would have noticed that I'd bought a new policy) the only trail is these monthly payments.

I don't know if we'll get all the money back, I'll try but is this sort of scheme common?

JP_McMurphy · 27 March 2013 at 1:56PM

I recently fell into the same trap.

I took out contents insurance with Budget and 6 months later I noticed a small payment of £3.99 going to budget (avon) each month. When I called them on 01789 415 050 they tried to defend it but ultimately put me through to customer services who gave up a refund without too much hassle.

The thing is I went over their online booking process again yesterday and the tick box is huge and obvious...there's no way I missed it first time round and there's no way I would have left it ticked.

Is this a scam? Automatically reap £3.99 from every customer until they notice? How many notice? 20%, 50%...what about the rest?

Cheap Trick if you ask me.

Captain_Shambolic · 27 March 2013 at 5:20PM

Cheap trick? Maybe.

Scam? No, a scam implies deceit or withheld information. They do state what the payment would be for (even if it's in policy terms or another link) and they do advise to untick the box if you don't want it or they will assume you do want it. I imagine Budget give up the refund easily because it would cost more for them had it escalated to a complaint.

Buzby · 27 March 2013 at 9:08PM

Agreed - no scam. Just an inattentive purchaser. With Budget, did you also miss where you gave them the ability to call for funds on your plastic at renewal automatically too?

B_H_Cobb · 19 April 2013 at 5:29PM

I have been trying for AGES to find out what a payment that is made monthly from our account of £4.00. Now I know. All queries to the bank have drawn a blank. I've recently remarried and this payment has been made by my new husband for a LONG TIME and he did nothing about it. I don't suppose they will be reimbursing me any time quick, but as soon as they're open on Monday morning I'll be stopping the payment. Heartfelt thanks to you. What a BIG con.

katiepyke · 20 April 2013 at 10:22PM

If the box is pre ticked then surly it's a scam as pre ticked boxes are not allowed anymore

Buzby · 21 April 2013 at 8:49AM

Nope - it still remains selectable (or de-selectable). The option you are suggesting is an opt out, where the additional service or feature is included as standard, and you have to tick the box to remove it. That would be perverse.

I know this website, I saw the page and the offer - it was one of three and I managed to untick all of the 'free' extras to get to the annual policy price I was originally quoted.

Consumers need to take full responsibility for their errors, not seek justification that someone else misled them. This was a case of mis-buying, not mis-selling!

B_H_Cobb · 22 April 2013 at 2:51PM

How wonderful to be so clever. My husband organised this insurance whilst suffering from grief from the death of his first wife, he wasn't in a brilliant place at the time. The company doesn't run a 'scam' but its a cheap trick. I'm currently trying to get my husband's money back but the company tell me that they're going to listen to the telephone call beforehand where he alledgely agreed to make payments.

Helena1008 · 23 April 2013 at 4:55PM

Why on earth should there be a box for personal insurance to be de selected when buying a car insurance policy? I don't have to opt out of buying washing powder when I order my teabags from Tesco.

My husband also got caught by budget avon pesonal insurance even though he cancelled his car insurance policy, and got a refund, 6 months ago.

If the company was not trying to mislead people they would send details of the policy for inspection and people would not have to go to their bank to find out where there money was going

As for the agreement to pay renewal via card - we cut up the card and got a replacement rather than risk them taking any further payment - and they set up a DD from our bank account. When my husband went to his bank today he was told that they have had to dedicate a member of staff just to dealing with this company.

It is cynical manipulation by the company. Well done to the person who did see it, but that doesn't make all of the others wrong.

dharmakids · 27 April 2013 at 1:56PM

Hi there,

I'm so grateful for the original post and the supportive/helpful comments. We've just discovered that we've had £4 a month taken from our account since 2010.

In our defense (as I know some smug voice will say something negative) I want to say we are bright people but we've had a difficult few years with some seriously challenging life events. And...I think most folk wouldn't always notice a small amount like £4 immediately and also as we were insured by Budget Car Insurance we assumed that it was the car insurance...

I'm not looking forward to the phonecall I need to make to try and remedy the situation. Also very confusing as they appear to have taken money during periods we weren't even (car) insured with them.

Any advise on how to ask for 31 months of payments back and get results?!
Thanks in advance for all helpful responses and many thanks again for the very helpful original post.

Also want to say BUYER BEWARE for anyone thinking about going with BUDGET CAR INSURANCE - we won't be doing that again!

Budget (Avon) DD on bank statement

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