insurance company liquidating, will have to pay double

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  • Mr_Poves
    Mr_Poves Posts: 238 Forumite
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    I've just spoken to my broker and they have sorted alternative cover from when my policy becomes void , but the bad news is it's financed again by close brothers .....
    So I'm correct in thinking before the policy becomes void I can cancel (if it states in the t&c's that is ) I will only owe for the last 4 month's cover pro rata and the existing finance will not be an issue anymore ?
    I'm just worried that if I cancel close brothers will spit their dummy out and not finance the new cover , I can't believe how much of a joke this actually is !
  • Quentin
    Quentin Posts: 40,405 Forumite
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    You can cancel.


    But you still must stick to your agreement with Close Bros.


    As advised above, if your policy states that on cancellation you are entitled to a (partial) refund, then claim this off FSCS
  • eddddy
    eddddy Posts: 16,441 Forumite
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    Another avenue to explore...

    Is your husband a sole trader? If so, he should have the same protection under the Consumer Credit Act as an ordinary consumer.

    The Section 75a of the Consumer Credit Act makes credit providers jointly liable with service providers for breach of contract.

    Enterprise are breaching their contract with you, so Close Brothers should be jointly liable.

    i.e. Close Brothers should repay you the premiums that you have to pay twice.


    (Make sure you research section 75a of the Consumer Credit Act - not just section 75.)

    Here's a bit of relevant info: http://www.financial-ombudsman.org.uk/publications/technical_notes/goods-and-services-bought-with-credit.html#1b
  • Mr_Poves
    Mr_Poves Posts: 238 Forumite
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    Quentin wrote: »
    You can cancel.


    But you still must stick to your agreement with Close Bros.


    As advised above, if your policy states that on cancellation you are entitled to a (partial) refund, then claim this off FSCS

    Thanks for the replies - in honesty the fscs are going to compensate at some point , so it really seems pointless cancelling the policy , maybe just let it lapse and renew on the 26th of this month .
  • nattergirl
    nattergirl Posts: 2 Newbie
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    thank you for your replies, sorry you are going through the same problem Mr Poves, yes it is Enterprise. Thank you edddy for your link, I suppose we are paying for a product at the end of the day and they aren't delivering so it will apply. I will find out about new cover offered and like Mr Poves said, Im not sure who is financing it, it may be Close Bros also. I don't think we can cancel once they have announced liquidation, thats the bit Im unclear about.
  • rs65
    rs65 Posts: 5,682 Forumite
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    eddddy wrote: »
    Enterprise are breaching their contract with you, so Close Brothers should be jointly liable.
    I'm no expert on section 75 but I suspect this is an indirect purchase therefore s75 is not relevant. Close Brothers pay the broker and the broker pays enterprise.
  • rs65
    rs65 Posts: 5,682 Forumite
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    Mr_Poves wrote: »
    I've just spoken to my broker and they have sorted alternative cover from when my policy becomes void
    The same broker that recommended Enterprise? Curious, who are they recommending now?
  • mayo2417
    mayo2417 Posts: 1 Newbie
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    I am in the same boat no help from my OLD broker they said I would have to pay off the old loan in full before I could take out a new one £1100 in total.
  • Quentin
    Quentin Posts: 40,405 Forumite
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    nattergirl wrote: »
    .....I don't think we can cancel once they have announced liquidation, thats the bit Im unclear about.
    Check the policy wording on cancelling, but there is normally no such condition attached to cancelling a policy
  • Mr_Poves
    Mr_Poves Posts: 238 Forumite
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    Thanks for the input Quentin , I'm really now considering ringing my broker and cancelling the policy as if it were a normal mid term cancellation , all I am getting from them is "keep paying the direct debit to close brothers" But it just feels like I'm being mugged off somewhat .
    What if I actually genuinely needed to just cancel the policy mid term for any other reason ?
    Surely it would be treated as normal with some kind of penalty or charges on top of the pro rata cover I have had upto now , the policy is only 3 month's old .
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