Email threatening debt collection agency

I took out motor insurance policy with elephant last year which expired in april 2012. At renewal I found a cheaper supplier and took out a new policy with swift insurance. I knew elephant couldn't take a payment for the renewal because my debit card had expired so as far as I was concerned no payment = no insurance right? However they have now written to me to say they cancelled my policy on 14th may and I now owe the nearly 70£ including administration fee. As far as I'm concerned I took the policy out for a year and didnt agree to it rolling from year to year. So my question is, do I have to pay up? A

Comments

  • McKneff
    McKneff Posts: 38,816
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    Wobetide wrote: »
    I took out motor insurance policy with elephant last year which expired in april 2012. At renewal I found a cheaper supplier and took out a new policy with swift insurance. I knew elephant couldn't take a payment for the renewal because my debit card had expired so as far as I was concerned no payment = no insurance right? However they have now written to me to say they cancelled my policy on 14th may and I now owe the nearly 70£ including administration fee. As far as I'm concerned I took the policy out for a year and didnt agree to it rolling from year to year. So my question is, do I have to pay up? A

    Wrong - Just because they couldnt take it, doesnt mean you don't owe it.

    Look at your original terms and conditions that you signed to say you had read. It probably says something about auto renewal. You probably had a letter about it before renewal but as you wrongly thought before that you werent taking it out again so you probably binned it withut even opening it.

    You really should have rung them to say that you werent going to renew it.

    Yes, you do have to pay up or it will affect your credit file.
    Ask them for a break down of the £70, it seems a bit steep.
    You might be able to get it down a bit.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Another alternative may be to prove to Elephant that you have been covered elsewhere. On the basis that you have other cover Elephant may refund the premium you have paid.
    Don't lie, thieve, cheat or steal. The Government do not like the competition.
    The Lord Giveth and the Government Taketh Away.
    I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)
  • CAB_Swansea_Bay_representative
    CAB_Swansea_Bay_representative Posts: 287 Organisation Representative
    Hi Wobetide, thank you for your query regarding e-mail threatening debt collection agency. Whether the insurance company can charge you for cover following your renewal will depend on the terms of your agreement with them but most insurance providers will automatically renew if you do not contact them to cancel and will then charge a cancellation fee or the renewal fee. You need to check the terms of the original insurance agreement. The fact that the insurance company could not take the instalments from your account will not mean you do not owe the money. If you cannot pay the amount in one payment you could negotiate an instalment plan and there are template letters which you can use on www.adviceguide.org.uk.
    Hope this is of some assistance
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
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