Budget (Avon) DD on bank statement

Tadman · 5 August 2013 at 10:35AM

As with all of the above; I've received a credit card statement including a payment to Avon Insurance of £4.00. There was also a number (01789 415050) which I called this morning. It turns out in my case that renewing my car insurance with LLoyds-TSB has resulted in this scam. I cancelled it with Avon and was put through to LLoyds-TSB who have promised to refund the £4.00.
Despite their protestations that they operate a legitimate service and that the website was clear with it's tickboxes I have asked for complaint details to be sent to me. I will pursue this with the FSA and/or Trading Standards. I would not have accepted this policy if the website had been clear, documents sent to me with a cancellation option or immediate payment was due. None of these were the case. By any definition of the word this is a scam. Has Martin raised this on any of his TV appearances? I think he should!
By the way, LLoyds-TSB insurance is run by BISL, the same company that are responsible for the cuddly meercat site comparethemarket.com. Beware!

lyndorset · 5 August 2013 at 12:55PM

I found I was also paying £4.00 a month to Avon. When I cntacted them the person the other end was very, very unhelpful, told me I had to continue to pay and could not cancel. I came off the phone, confused and angry. I phoned again a few days later, they had no record of my previous call, told me I had been sent documentation that as I had not declined I was opted in.

I neither want nor need this "insurance". They told me they would resend the paperwork, I received a brochure!

I think it was linked to an RAC or B &B policy long since ended and I cannot stop it.

Zeff · 9 August 2013 at 11:10PM

I contacted this company today as I have been paying £3.99 since December 2012, and after they took it again yesterday, I came across this thread, and spoke to them today. I explained I neither wanted, needed or received documents advising I had taken out personal accident cover, and felt that by them inputting a tick in the box that this was underhand, and I wanted a full refund. This was met with you signed on line for this cover etc...I then explained I would let the financial ombudsman decide this matter unless I received a full refund, needless to say as a Gesture of Goodwill my full refund will be in my bank account within 7 days.

katielouisej · 10 August 2013 at 10:46AM

For car/van/home insurance for most companies you have usually brought it online and NOT read the T&C's, OR checked what you are and are not clicking, this is why people tend to ring up complaining, even though an advisor had nothing to do with your policy, and it was the first time you've rang. Then you complain about the automatic renewal, (in BIG letters on the renewal offers on the first page, and in the docs), then you complain about the fees involved, the about the phone number as it's not free, yet to take out ANY policy, you have to BY LAW tick the terms and conditions to say you have READ them.
BTW it costs money for YOU to change your details on a policy, they're not the ones who want a new car, or a new house, why should the company pay for it?
Also, documents are sent out for all extra policies you've taken.

Oh and it costs a company a lot of money for you to go to the FOS, even if they're in the wrong and you're in the right. Hence giving you the money back stops the complaint quicker. But if anything did happen, most people would claim on that insurance in a heartbeat!

Tadman · 22 August 2013 at 9:09AM

katielouisej wrote: »

For car/van/home insurance for most companies you have usually brought it online and NOT read the T&C's, OR checked what you are and are not clicking, this is why people tend to ring up complaining, even though an advisor had nothing to do with your policy, and it was the first time you've rang. Then you complain about the automatic renewal, (in BIG letters on the renewal offers on the first page, and in the docs), then you complain about the fees involved, the about the phone number as it's not free, yet to take out ANY policy, you have to BY LAW tick the terms and conditions to say you have READ them.
BTW it costs money for YOU to change your details on a policy, they're not the ones who want a new car, or a new house, why should the company pay for it?
Also, documents are sent out for all extra policies you've taken.

Oh and it costs a company a lot of money for you to go to the FOS, even if they're in the wrong and you're in the right. Hence giving you the money back stops the complaint quicker. But if anything did happen, most people would claim on that insurance in a heartbeat!

With this attitude, there would have been no compensation for various mis-selling issues there has been over the last 15 years or so. Companies have again and again been caught out overstepping the mark and this particular scam shows they are still at it. The very fact that Googling "Avon Insurance" comes up with complaint after complaint shows there is a real problem.
The sensible response is to complain assertively, not angrily or rudely to those people who's job it is to handle your complaint, and make the relevant statutary bodies aware of your views. This is the real power of the consumer to change things which they perceive to be unacceptable.

Nickyc_3 · 26 August 2013 at 2:20PM

Thank you for the information! I was also on budget car insurance - just recently in last few months switched - probably been with them 6 months and then also this month noticed 3.99 direct debit deducted for first time on online bank statement! I then cancelled it as didn't know what it was. I then received a letter from budget (who I have my car insurance with) with just the policy number on and nothing else to state what the policy was for, stating that as I had cancelled the payment, the policy above in the letter (didn't actually state above what the policy was even for!!!) was now invalid but if I would like to continue with it to please fill out the direct debit mandate attached!! So there was me, now very worried that it was somehow related to the car insurance and the cancellation and now made the car insurance invalid!! Sure a lot of people think the same and reinstate it automatically but thanks to your forum I have done no such thing! So thank you for the useful information! I don't remember there being any such tick box for personal injury cover and if there was, it certainly didn't make it clear that I would have to pay for it after 6 months!!! Con indeeed!!! :-/

nigedad · 2 September 2013 at 5:07PM

I have just noticed a £3.99 payment on my bank statement going back months. I contacted my bank for help and they gave me a contact number for Budget insurance. It turns out to be a separate insurance for injury which runs until cancelled. This was applied at the time I took out a new car insurance and would have needed me to untick a box for it not to be applied. The way they introduce it without it being noticed is by giving it away for the 1st 3mths. Anyway I called them to find out how I reclaim it and was offered 50% of the premium back I rejected and within minutes I was offered a full refund.
These people rely on people like me not to check their bank statements thoroughly and then except that the terms and conditions. DON'T be fooled this is a scam otherwise they wouldn't sell it in such a way.
Don't except there 1st offer either.

jools61 · 3 September 2013 at 5:17PM

I've noticed a direct debit payment taken out of my bank last month for £4.00. I've never been a customer of Budget insurance. I took out RAC Car Insurance over the phone six months ago. I've never at any time signed up for this insurance cover, nor was I offered it. As I renewed my policy over the phone I never had the opportunity to opt out. How can a company take money from someone's bank and set up a direct debit without their knowledge or permission?

Charlie9325 · 6 September 2013 at 12:47PM

I too took out my insurance by phone and did not know anything about the Avon £4.00 payment until I received my credit card statement, the same credit card used to pay my insurance. I bank on line and when I checked my Direct Debit/Standing Orders, Avon Insurance is not registered on either of them yet it is being added to my payments every month.

bubblepopped · 6 September 2013 at 3:50PM

Changing bank accounts when I discovered DDs for £6 per month to Home 3 and £3.99 per month to Avon Budget.

I applied for a buildings insurance policy online over a year ago using compare the market and settled on Budget. I am very, very particular about tick boxes (especially re third parties and 'free' offers) and having been in customer services for longer than I care to remember I review T&Cs meticulously. My partner also intensely dislikes DDs, so everything is a one off payment by card, including the budget buildings insurance; so how these policies were set up is a complete mystery, not only to me but to the companies who provide them.

Called them using the number from the first post and received the 'you must have left the box ticked' spiel. Was also told they had sent out documentation for the policies. I keep meticulous paper records - so much so, it drives my partner crazy - and there was nothing received for either policy. Disagreed with their statement and was passed through to a very helpful Lisa in customer relations at Budget. Lisa agreed to refund all payments, and passed me through to Home 3 for the second part of my issues.

After an unpleasant experience with Home 3 'customer services' (should be worried when their website doesn't have a complaints info page) I called Lisa back again, who investigated, returned my call and refunded the payments. Should receive the payments back to the card (as they don't have our bank details) within 10 working days.

Wouldn't have known who to contact if it hadn't been for this forum, so some tips from my experience:

1) highlight that you already have the cover through another provider (we had since 1994!) so no need to take out.

2) ask them to confirm how the agreeement was made (no-one could do this -they all said 'you must have' and 'there should have been')

3) highlight you had no knowledge of policy, so weren't covered - eg for the home care there have been several situations where we could have made a claim had we a) knew about it b) wanted it!

4) be patient and polite

If all else had failed for me, I fully intended to reclaim the premiums under the DD guarantee. From what I have read there is no time limit for reclaims and they can only dispute if they can produce a paper signed DD mandate. Following this, a complaint to FOS would have been made with a request for compensation for time spent (above the reasonable amount to make a complaint).

Hope this helps someone. In the meantime, I'm writing to Budget to highlight Lisa's excellent service.

Budget (Avon) DD on bank statement

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