Insurance Company Error

coraastbury

Hi, I don't know where to post this query so thought I would try it here.

We made a claim 2/3 months ago on our household insurance for a total of £400. My husband was sent a credit card like voucher for buying a replacement watch with the balance on it. A couple of days later we were sent a cheque for £196 saying it was settlement of the claim. Anyway we deposited this cheque and thought nothing of it.

Last week we received a letter from the insurance company saying it was an error and want the money back in 14 days or it goes to a debt collection agency. We haven't got this amount of money especially this close to christmas.

What should we do. It is their error that they sent the cheque. My husband who used to work for a mobile phone company says that if a mobile phone is sent to you in error, you are legally allowed to keep it as a gift and the company cannot demand it back. Is this the same with this cheque???

Please does anyone know what to do??

Thanks

Justicia

coraastbury wrote:

My husband who used to work for a mobile phone company says that if a mobile phone is sent to you in error, you are legally allowed to keep it as a gift and the company cannot demand it back. Is this the same with this cheque???

Hmmm...

Not too sure on the cheque aspect - with the initial credit-card voucher, did you get any documentation stating that it was in settlement of the claim?

In regards to "accidental gifts," I was under the impression that if something was sent to you in error it was not automatically a gift but if you contacted the company that sent (in this example) the cellphone to inform them of their error and offered them reasonable (subjective?) steps to collect it within a reasonable (subjective?) amount of time and they didn't THEN it was classed as passing into your legal property...

If you get no joy here, I would suggest a call or visit to the CAB to obtain their advice. Or perhaps the Financial Ombudsdman?

http://www.financial-ombudsman.org.uk

Bossyboots

Justicia wrote:

Hmmm...


In regards to "accidental gifts," I was under the impression that if something was sent to you in error it was not automatically a gift but if you contacted the company that sent (in this example) the cellphone to inform them of their error and offered them reasonable (subjective?) steps to collect it within a reasonable (subjective?) amount of time and they didn't THEN it was classed as passing into your legal property...

This was changed in 2002 (I think that was the right year, will try and find the link again) and now you do not need to notify the sender of unsolicited goods or ask them to collect them, you can simply keep them.

Justicia

Bossyboots wrote:

This was changed in 2002 (I think that was the right year, will try and find the link again) and now you do not need to notify the sender of unsolicited or ask them to collect them, you can simply keep them.

Interesting info...

If you could find the link, that would be excellent, Bossy :)

Mwahahahahaaaaa!! :j

Bossyboots

Justicia wrote:

Interesting info...

If you could find the link, that would be excellent, Bossy :)

Mwahahahahaaaaa!! :j

How can I resist such charm!

Here's the link http://www.dti.gov.uk/ccp/topics1/unsolicited.htm

I used the info in this to good effect on some items delivered at work. I did ask for them to be collected as they were no good to us but when we received an invoice I warned them of the position and they were collected the next day.

Justicia

Bossyboots wrote:

How can I resist such charm!

Here's the link http://www.dti.gov.uk/ccp/topics1/unsolicited.htm

I used the info in this to good effect on some items delivered at work. I did ask for them to be collected as they were no good to us but when we received an invoice I warned them of the position and they were collected the next day.

Wow! That's got to be one of the few times where legal regulations are altered in favour of the consumer!!

Thanks! :rudolf:

coraastbury

Thanks for that link Bossy. I will contact trading standards tomorrow.

dunstonh

It should be noted that you are not entitled to this money and they can take you to court to get it back. Its little different from the well known scenario of a bank paying a credit into your account in error. Just because you get the money, doesnt mean you are entitled to keep it.

Savvy_Sue

Bossyboots wrote:

How can I resist such charm!

Here's the link http://www.dti.gov.uk/ccp/topics1/unsolicited.htm

I used the info in this to good effect on some items delivered at work. I did ask for them to be collected as they were no good to us but when we received an invoice I warned them of the position and they were collected the next day.

Do the goods have to be addressed to you? Only we've got a case of wine in our porch, left on our doorstep yesterday, which should have been delivered to the commercial premises on the opposite corner to us. I have managed to track down the intended recipient and left a message for him, but maybe next time ...

Actually, I would never be that dishonest, but we do get quite a few mis-deliveries.

Bossyboots

Savvy_Sue wrote:

Do the goods have to be addressed to you? Only we've got a case of wine in our porch, left on our doorstep yesterday, which should have been delivered to the commercial premises on the opposite corner to us. I have managed to track down the intended recipient and left a message for him, but maybe next time ...

Actually, I would never be that dishonest, but we do get quite a few mis-deliveries.

Mis-delivering is the postie/courier's fault and is not the same as unsolicited goods.

greenwich

dunstonh wrote:

It should be noted that you are not entitled to this money and they can take you to court to get it back. Its little different from the well known scenario of a bank paying a credit into your account in error. Just because you get the money, doesnt mean you are entitled to keep it.

dunstonh, it's not quite as clear-cut as you suggest. There is a defence to a claim like that called "change of position" when the courts will consider it unfair to make you pay the money back. See this: http://www.lemon-co.co.uk/overpayment.htm

So in this case the OP could claim a change of position but they would have to show in court that they spent the money in good faith and just don't have £196 to give back.

In practice, the best thing might be to agree some sort of repayment plan with the insurance company. They might not take the OP to court over this but they might make life difficult if they call in the debt collectors.

Another option would be to make a complaint that the company has acted unfairly and take it to the Ombudsman.