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  • FIRST POST
    • nattergirl
    • By nattergirl 11th Oct 16, 12:06 AM
    • 2Posts
    • 1Thanks
    nattergirl
    insurance company liquidating, will have to pay double
    • #1
    • 11th Oct 16, 12:06 AM
    insurance company liquidating, will have to pay double 11th Oct 16 at 12:06 AM
    My hubby is a black cabbie, so has public liability insurance. He took out a policy in June, and opted to make monthly payments. He signed a deal where the first month was £240 then 9x £120 monthly payments are due and then it is paid out for the year. We were informed about a month ago that the insurance firm is liquidating, but to do nothing as of yet and wait to be informed as to what the next step is. We had a phone call today to inform us that the he will be insured until 26th Oct. They can recommend another insurance firm who will give him the same deal that he had now. However because he took the pay monthly option he still has to continue paying the £120 a month for the original policy until the end of the contracted period because the policy has been paid in full by a loan company and our agreements are for payments to the loan company and not the insurance company. So he will have to pay the rest of the existing 'loan' and pay for new insurance on top. They advised we may get some of the money back but I realise that we might not. It feels like we should stop paying, but were informed today that we would have debt collectors involved if we just stopped paying. Has anyone experienced anything like this, and is there anything we can do to get out of this, as paying double is going to cripple us
Page 1
    • rs65
    • By rs65 11th Oct 16, 7:02 AM
    • 4,931 Posts
    • 2,319 Thanks
    rs65
    • #2
    • 11th Oct 16, 7:02 AM
    • #2
    • 11th Oct 16, 7:02 AM
    Which insurance company?
    • paddyandstumpy
    • By paddyandstumpy 11th Oct 16, 7:21 AM
    • 332 Posts
    • 92 Thanks
    paddyandstumpy
    • #3
    • 11th Oct 16, 7:21 AM
    • #3
    • 11th Oct 16, 7:21 AM
    Your debt is with the finance company who paid the insurer the full premium, hence them asking for the instalments to continue even though the insurer is ceasing.
    It'll be interesting to know the insurer as above.

    All I can suggest is try cancelling your policy before the 26th, that way you can legitimately argue that the insurer should refund the finance company (unless you've claimed this year and the who premium is due regardless). The insurer probably won't, given their finances, but that is then the finance companies problem, not yours.
    • paddyandstumpy
    • By paddyandstumpy 11th Oct 16, 12:18 PM
    • 332 Posts
    • 92 Thanks
    paddyandstumpy
    • #4
    • 11th Oct 16, 12:18 PM
    • #4
    • 11th Oct 16, 12:18 PM
    Just to add - I think the insurer is Enterprise Insurance, a Gibraltarian insurer...
    • Mr Poves
    • By Mr Poves 11th Oct 16, 11:21 PM
    • 223 Posts
    • 87 Thanks
    Mr Poves
    • #5
    • 11th Oct 16, 11:21 PM
    • #5
    • 11th Oct 16, 11:21 PM
    It is Enterprise , and I'm in exactly the same position , I really don't know what to do either , surely it should not be left to us as the consumer to deal with this problem .
    All I'm getting is emails reminding me to keep paying as per the credit agreement .
    Then another today informing me I'm not insured from the 26th of this month , but to keep paying the premium .
    • paddyandstumpy
    • By paddyandstumpy 12th Oct 16, 7:54 AM
    • 332 Posts
    • 92 Thanks
    paddyandstumpy
    • #6
    • 12th Oct 16, 7:54 AM
    • #6
    • 12th Oct 16, 7:54 AM
    As suggested above, if you cancel the insurance with Enterprise before they fold, they owe the finance company, not you.
    Last edited by paddyandstumpy; 12-10-2016 at 9:30 AM.
    • antrobus
    • By antrobus 12th Oct 16, 8:59 AM
    • 13,876 Posts
    • 19,372 Thanks
    antrobus
    • #7
    • 12th Oct 16, 8:59 AM
    • #7
    • 12th Oct 16, 8:59 AM
    ...As the company isn't U.K. Registered, its liabilities aren't covered by the FSCS which is basically free consumer insurance against the financial services industry.
    Originally posted by paddyandstumpy
    FSCS is paying Enterprise claims, including motor insurance claims now. It will also be covering return of premium claims for Enterprise customers.

    http://www.fscs.org.uk/news/2016/september/fscs-warns-people-with-enterprise-insurance-motor-policies-to-find-new-cover/
    • paddyandstumpy
    • By paddyandstumpy 12th Oct 16, 9:07 AM
    • 332 Posts
    • 92 Thanks
    paddyandstumpy
    • #8
    • 12th Oct 16, 9:07 AM
    • #8
    • 12th Oct 16, 9:07 AM
    I stand corrected!
    • hoaloaken
    • By hoaloaken 12th Oct 16, 9:12 AM
    • 2 Posts
    • 3 Thanks
    hoaloaken
    • #9
    • 12th Oct 16, 9:12 AM
    • #9
    • 12th Oct 16, 9:12 AM
    what is the name of this insurance company dear?
    • Quentin
    • By Quentin 12th Oct 16, 9:12 AM
    • 30,266 Posts
    • 14,362 Thanks
    Quentin
    Does your (enterprise) policy state that if you cancel you get any return of premium?

    If so cancel in accordance with the cancellation procedure set out in the policy, then put in a claim to FSCS for your return of premium.

    In the meantime you do need to keep to your agreement with the finance company who arranged the loan.
    • Quentin
    • By Quentin 12th Oct 16, 9:21 AM
    • 30,266 Posts
    • 14,362 Thanks
    Quentin
    I stand corrected!
    Originally posted by paddyandstumpy
    Why not edit ( or delete) your "authoritative" but incorrect post regarding the FSCS only protecting customers of UK insurers going bust, and your incorrect assertion that those who don't insure with a UK company should be "reminded" about this as they only get what they pay for??
    • Mr Poves
    • By Mr Poves 12th Oct 16, 10:17 AM
    • 223 Posts
    • 87 Thanks
    Mr Poves
    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
    • By Quentin 12th Oct 16, 10:53 AM
    • 30,266 Posts
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    Quentin
    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
    • By eddddy 12th Oct 16, 12:15 PM
    • 3,853 Posts
    • 3,488 Thanks
    eddddy
    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
    • By Mr Poves 12th Oct 16, 3:33 PM
    • 223 Posts
    • 87 Thanks
    Mr Poves
    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
    Originally posted by Quentin
    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
    • By nattergirl 12th Oct 16, 9:07 PM
    • 2 Posts
    • 1 Thanks
    nattergirl
    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
    • By rs65 12th Oct 16, 9:58 PM
    • 4,931 Posts
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    rs65
    Enterprise are breaching their contract with you, so Close Brothers should be jointly liable.
    Originally posted by eddddy
    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
    • By rs65 12th Oct 16, 10:00 PM
    • 4,931 Posts
    • 2,319 Thanks
    rs65
    I've just spoken to my broker and they have sorted alternative cover from when my policy becomes void
    Originally posted by Mr Poves
    The same broker that recommended Enterprise? Curious, who are they recommending now?
    • mayo2417
    • By mayo2417 12th Oct 16, 10:10 PM
    • 1 Posts
    • 0 Thanks
    mayo2417
    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
    • By Quentin 13th Oct 16, 9:45 AM
    • 30,266 Posts
    • 14,362 Thanks
    Quentin
    .....I don't think we can cancel once they have announced liquidation, thats the bit Im unclear about.
    Originally posted by nattergirl
    Check the policy wording on cancelling, but there is normally no such condition attached to cancelling a policy
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