Car Insurance Claim (Swiftcover)

mna78

Hi all,

After some advice, so heres the story to fill you in:

November 2006 I knock over a stationary Motorbike in a car park whilst reversing, it should not have been there (not in a bay) but I claimed full responsibility anyway.

Exchange details with owner once he came back to the bike, contact insurance etc... assume all is fine and resolved as I had admitted liabity.

Fast forward to May 2008!!! I received a Court Summons regarding an outstanding amount from the incident. I contacted Swift, faxed the paperwork I had received from the court and they stated I was covered and would defend the case for me.

14th July 2008, I receive a County Court Judgement against me for non-attendance to defend myself..... at this point I starting to get a bit miffed and stressed out, once again contact Swift, was met with a don't worry about it we'll clear it you have 30 days, email us the CCJ.

So today two weeks later (today) I thought I'd contact the Court to see if anything has happened. They have received nothing and I was told it will stand, unless the case is resolved before 14th August, at which point I'll get a warrent out against me then Bayliffs round to collect the money.

Now I'm pretty laid back but this surely shouldn't be happening??? why oh why has it taken soooo long to sort out???

Does anyone know what I can do? contact an obudsman?

PS. Sorry for the long post

Quentin

Contact your insurer again and keep doing so until it's confirmed they have settled the ccj or successfully appealed against it. Get this escalated within the company now.

This could have serious consequences as once the 14/8/08 deadline passes your ccj will go onto the register and remain there for 6 years.

This will have a big impact on your ability to get anything at all on credit.

You need to do this now, as there is no time to go through the full complaint process before 14th August.

mna78

Thanks for the advice, I shall contact them (0870 number grrr.....) daily until they pull there finger out.

Still concerned that I am at the mercy off them resolving it when they are the ones that have got me into this situation in the first place. Its taken coming on 2 years to sort it out, so I don't hold out a hugh expection that they will resolve in time.

Do you know what steps I can take to complain?

Quentin

I would have more hope! They have just played the normal waiting game with the third party, hoping he would give up - he's got fed up and issued the court summons to concentrate their mind, and hopefully they will now settle up within the allowed time.

This is so serious (unless you already have ccjs), you may wish to contact a solictor to resolve the matter with the insurance company.

mna78

I know its serious that is why it is bothering me so much... I have (had) a very good credit rating uptill now.

I did think about legal advice, but its seems crazy that I pay for legal cover on my insurance only to have to get further legal representation to legally advice me about my original legal cover. Anyway I have found the MD's & Claim Managers email address (gotta love Google) and they shall be receiving an email from me shortly.

Quentin

Good show. Keep at them. Make it the priority of the week!

Oscar_The_Grouch

My 2p:

Get in touch with your bank manager. Tell them the whole story and ask them for an unsecured overdraft to cover the whole amount of the CCJ. Get a letter off the bank manager confirming the amount of interest due on the overdraft and details of any arrangement fees.

Speak to the court and find out what the absolute last day is that you can pay funds to them.

Write a letter to the CEO of your insurer stating that unless you are in receipt of a letter sent by Special Delivery the day before the "absolute last day" confirming that they have made the required payment, together with confirmation from the Court that this has been received, you will be making the payment yourself and charging them interest at the amount charged by the bank plus 1% per month or £12.50, whichever is the greater.

Tell them that you no longer wish to receive or make telephone calls in connection with the issue, as you have evidence to show that they are not responding to or actioning telephone calls. Advise them that all correspondence will now have to be in writing and you will be making an administration charge to them of £12.50 for each letter that you write and £10 for each letter that you receive. Remember to send them an invoice for this letter, plus any arramgement fees you have suffered for the overdraft.

Banks are allowed to charge fees for their letters and insurers are allowed to charge fees for any amendments to policies. Although I work for an insurance company, I do believe it is time that the consumer hit back!!

Don't expect you to get anywhere with charging them fees for the letters, but if they have made you run ragged over this, you may as well have a little bit of fun with them!!!!

mna78

Update:
Well the email that I sent last night, cc'ing the MD & Claims Mgr in had the desired effect of a quick response from the Claim handler as they called me at 8:30am today.

It's not good news though, he basically said they wouldn't meet the deadline, partly blaming the courts slow process to process their "Setting aside paperwork". He told me that I can expect to have the CCJ against my name for 3 weeks odd and that it could be set aside 30 days after its been recorded.

I'm extremely dispointed by this but did not go off into a rage on the phone, I just simply stated the it was not good enough. He is sending me a letter (via email) stating that it is not a personal debt and that it is due to the incident incase I need to apply for credit.

What next, any suggestions?

Quentin

It looks like they are now on to it.

You can get a ccj set aside (if it came by default, which yours has).

Once they have got it set aside, they are right, your record will be corrected and this won't affect you in the future.

When this is all over you may still feel an official complaint about their poor handling of a serious matter is warranted!

Oscar_The_Grouch

I don't understand why they do not feel they can make a payment before 14 August. That's 2 weeks away!!.

The FSA rules state:

ICOBS 8.1.1 part 4 states that an insurer must settle claims promptly once settlement terms are agreed.

It is generally held that a prompt settlement would be one issued within 5 working days. Under the old ICOB 7 rules, it was a REQUIREMENT to settle within that period.

ICOBS 8.2.6 through 8 state:

Motor vehicle liability claims handling rules
ICOBS 8.2.6 Within three months of the injured party presenting his claim for compensation:
(1) the firm of the person who caused the accident or its claims representative must make a reasoned offer of compensation in cases where liability is not contested and the damages have been quantified; or

(2) the firm to whom the claim for compensation has been addressed or its claims representative must provide a reasoned reply to the points made in the claim in cases where liability is denied or has not been clearly determined or the damages have not been fully quantified.

[Note: article 4(6) of the Fourth Motor Insurance Directive and article 4(4)(4e, first paragraph) of the Fifth Motor Insurance Directive]
ICOBS 8.2.7 (1) If liability is initially denied, or not admitted, within three months of any subsequent admission of liability, the firm must (directly, or through a claims representative) make a reasoned offer of settlement, if, by that time, the relevant claim for damages has been fully quantified.

(2) If an injured party's claim for damages is not fully quantified when it is first made, within three months of the subsequent receipt of a fully quantified claim for damages, the firm must (directly, or through a claims representative) make a reasoned offer of damages, if liability is admitted at that time.

ICOBS 8.2.8 A claim for damages will be fully quantified for the purpose of this section when the injured party provides written evidence which substantiates or supports the amounts claimed.

This is taken directly from the FSA Handbook

I would be tempted to respond to SwifCover (copied to the MD and claims manager again) with a copy of everything I have put in red and ask them why they feel they need more than 14 days to settle a claim that is 2 years old already. Suggest to them that they arrange an immediate CHAPS (not BACS - CHAPS is a same day money transfer where BACS takes 3) into your bank account for the full amount of the judgement and you will arrange for a cheque to be issued to the court and will not report them to the FSA for breach of regulations.

Tell them that if they fail to complete the payment by the close of business on Thursday (that gives them their 5 working days), you will do the following:

Eveything I said in my last post
Report them to the FSA for breach of ICOBS 8 rules
Commence legal proceedings against them for breach of contract.

Enjoy!!

mna78

Thanks for the reassurance, but I'm still not happy with the situation and have just fired off an email (cc'ing MD etc...):

Thank you for your phone this morning, although I think it is unacceptable that I am going to have a CCJ against my name (even if it’s temporary) through your company not being able to defend the case in a reasonable time.

After all, this claim is from November 2006. Further there has been a Court Summons which there was approx 3 weeks to prepare for, which you did not attend. Now 2 weeks into a County Court Judgement and still no movement to a resolution, forgive me but I do not totally trust that this will be resolved anytime soon.

I am now going to be seeking legal advice and shall be contact the Financial Ombudsman.

As a side note, I start a new job in 2 weeks time in the Financial Services industry, on the contract I have it asks about CCJ’s for obvious reasons working in this area. If this effects my employment I shall be seeking damages from your selves.