Budget Insurance - am confused!!

Animagdon

When my partner and I moved into our home in 2007 we set up buildings and contents insurance with Budget but when the renewal quote came through the door last year we were able to find a better deal so we advised them we weren't renewing and promptly set up insurance with Halifax.

Last month I checked what Direct Debits were due out of my account I noticed that the payment for Budget was still set up but it hadn't been claimed since April 2008 (when we moved to Halifax) so I deleted the Direct Debit.

A week later I got a letter from Budget demanding I pay over £200 for cancelling my insurance with them!

I wrote them a letter explaining that I had no insurance with them to cancel, payments haven't been taken for 10 months etc...though I've been really slack and not got round to posting it :doh::doh:

Anyway, I've come home tonight to a letter from a debt collection agency working on behalf of Budget wanting the money so I don't know whether I'm coming or going.....do I still send the letter to Budget or do I now have to send it to the debt agency? Is there a different letter I could send to the agency advising that the amount is in dispute and if so does anyone know where I could find a template?

And is what Budget are doing legal? Can they chase me for a renewal quote that was not accepted and has not been paid for in monthly installments?????

dacouch

It is not unusual for someone to have two home insurance policies running but is fortunately fairly simple to sort out.

Contact budget and advise them you have cover with Halifax and when the Halifax policy started. They will probally ask to see proof of it and should then refund you the premiums (Sometimes less an admin fee) for the period you had "Dual Insurance" (Industry term for having two policies on the same home).

If this does not work the Association of British Insurers who are the Insurers trade organisation have a industry to deal with Dual Insurance. Basically their standard is that each of the Insurers you had dual insurance with will refund 50% of the premium you paid them for the period you had dual insurance. Their is informationn on their website which is https://www.abi.org.uk and click on "consumers" and then do a search on "dual insurance" which should give you the relevant wording to quote or print out. (I have not put a link on for the exact page as the ABIs website seems to be down at the moment).

I would recommend you try the first option first (Assuming budget do not try to levy to higher an admin fee) as I assume the Halifax quote is much lower than Budgets so if you do the second option and get 50% back off the cheaper Halifax price and 50% back off the more expensive Budget price you may get less back than the first option.

Don't let Budget fob you off as you are entitled to your money back (Or half and half), if you have problems with one of their call centre staff who do not understand how this works (Which is common with most Insurance Call Centre Staff simply ask for a superviser. (A trick I find helpful is at the start of the conversation ask for the employees full name and make a note of it, then they are far more likely to carry out what ever you ask as they know you have their name!).

It is also important that you ask budget to inform the debt collector and for them to take the note they have made against your credit rating.

I hope this helps

nobblyned

dacouch wrote: »

Contact budget and advise them you have cover with Halifax and when the Halifax policy started. They will probally ask to see proof of it and should then refund you the premiums (Sometimes less an admin fee) for the period you had "Dual Insurance" (Industry term for having two policies on the same home).

I think that the OP is saying that they didn't have a dual insurance situation. Budget hadn't taken any payments since their policy was cancelled and the Halifax policy was started.

I agree that the best way forward is just to contact budget and ask them what is going on. At this stage I would just give them a call and only resort to letter writing if they don't agree there has been an error.

Clive_Woody

nobblyned wrote: »

...and only resort to letter writing if they don't agree there has been an error.

I would disagree with this bit and suggest OP confirms all telephone conversations in writing (copy of letter kept and original sent recorded delivery). If budget have been incompetent enough to pass this on to debt collectors then I would not hold out for a quick resolution and would keep evidence of all that was agreed.

nobblyned

I agree that if they say there has been an error to confirm in writing that the issue is resolved. And if they persist that you owe them then written correspondance would be best.

I just think that calling now is the best way forward to get things started, especially as the OP seems to have procrastination issue where letters are concerned....

dacouch

nobblyned wrote: »

I think that the OP is saying that they didn't have a dual insurance situation. Budget hadn't taken any payments since their policy was cancelled and the Halifax policy was started.

I agree that the best way forward is just to contact budget and ask them what is going on. At this stage I would just give them a call and only resort to letter writing if they don't agree there has been an error.

.

That means they had two insurance policies running eg they took cover out with Halifax and Budget carried on trying to collect payments. Budget would not have tried to collect premiums if they did not think they were covering the home. Whether or not they did not action his insructions to cancel the budget policy they still held him covered hence them wanting the premiums for covering him.

Clive_Woody

dacouch wrote: »

.

That means they had two insurance policies running eg they took cover out with Halifax and Budget carried on trying to collect payments. Budget would not have tried to collect premiums if they did not think they were covering the home. Whether or not they did not action his insructions to cancel the budget policy they still held him covered hence them wanting the premiums for covering him.

Not as I understand it.

OP had budget insurance for a year, when the renewal notice came they phoned and cancelled policy. Nearly 10 months later OP discovered that the Budget DD mandate was still listed in their banking list of DDs so they deleted it. At this point Budget sent OP a £200 bill for cancelling policy (no doubt triggered by them receiving confirmation that the DD instruction had been deleted).

Op then didn't get around to contacting Budget to clarify the situation. Meanwhile Budget sell the debt to a bunch of debt collectors who start chasing the OP.

During the 10 months after the OP cancelled with Budget they didn't attempt to take monthly payments by DD and only asked for money when the DD was deleted from OP's bank.

I've had instances similar to this before where I have cancelled something, but been a bit slow deleting the DD mandate from my online banking. When I do delete it I get a threatening letter demanding an alternative form of payment. Normally a quick phone call telling them not to be silly and to check their records is sufficient.

dacouch

The reason they are chasing for money is the monhly direct debit was cancelled they had not cancelled the policy so demanded the rest of the years premiums because they were still covering them. If they were not covering they would not be asking for £200

nobblyned

dacouch wrote: »

The reason they are chasing for money is the monhly direct debit was cancelled they had not cancelled the policy so demanded the rest of the years premiums because they were still covering them. If they were not covering they would not be asking for £200

Had budget believed that they had renewed the policy and were covering the OP all along they would have been asking for money before the 10th month of an annual policy.

The OP is saying that there was no insurance with budget for the second year, and budget took no payments for any insurance in that second year.

Hence both sides saying no policy.

Only when the dormant DD was cancelled did they demand money.

There is no 'rest of the years premiums' as no money had been taken up to that point.

Looks like an error generated by Budgets notification of the cancellation of a dormant DD.

Clive_Woody

nobblyned wrote: »

Had budget believed that they had renewed the policy and were covering the OP all along they would have been asking for money before the 10th month of an annual policy.

The OP is saying that there was no insurance with budget for the second year, and budget took no payments for any insurance in that second year.

Hence both sides saying no policy.

Only when the dormant DD was cancelled did they demand money.

There is no 'rest of the years premiums' as no money had been taken up to that point.

Looks like an error generated by Budgets notification of the cancellation of a dormant DD.

At least we understand what's going on :beer:

Animagdon

Well I called Budget up tonight becaue my letters are obviously going unheeded (having just received a letter from a debt collection agency on their behalf) and after nearly 2 hours going through everything with them (leaving me in tears because the guy on the phone was just so nasty and his manager wasn't really any better....callback my aris....) my faith in humaity has been restored by the lovely woman at the Halifax who has taken the fight up for me and will be putting Budget in their place tomorrow. She's going to fax them my new policy details proving that we've been covered with them in the time Budget say we should have been with them (depsite them not being able to explain why no money has been taken in 10 months) so hopefully, this time tomorrow, the saga will be over and I can breathe easy knowing that I will never be taking out insurance with Budget ever again!!

The customer services was appalling to say the least