Halifax Car Insurance

tonydav43

Hi

Hope someone can help. I recently moved to Norway and gave Halifax car insurance more than 1 months notice that I wanted to cancel my policy. I was up to date with my monthly payments. I cancelled my direct debit with my UK bank. I have just noticed a charge on my bank for a failed direct debit. I phoned the bank and it turns out that even though I cancelled my direct debit (my bank has a record of that as well) the Halifax simply submitted the original direct debit request that was about 10 months old. My bank has told me that because it had my signiture on they had to set it up, the Halifax then simply called for the money. As I dont use that account anymore, it was rejected, but I got charged £20.00 for a failed payment. My bank are looking into refunding that as it was not my fault, but has the Halifax not broken some type of regulation or law, or can any financial instituition simply present an old direct debt form and take money out of your bank without your knowledege.

Help Please

Oscar_The_Grouch

Hi there

Unfortunately, a direct debit is an agreement that the holder can re-submit as many times as they like. This is so that when you have an issue over a failed payment (such as if you have overspent and have no money in the account), they can simply re-submit the direct debit rather than having to get you to sign a new form. It's all part of the Direct Debit Guarantee that they will have provided you with at the outset.

This does not mean that what they have done is correct; just that they are allowed to do it under the terms of the direct debit agreement you had with them. If you have correctly cancelled your policy and do not owe them any money (including any charges for admin fees for cancellations) then you are entitled to complain about what they have done.

I suggest you send them a polite e-mail or letter asking them to explain why they tried to take the money and that you have received a £20 charge because of this. Ask them to confirm, in writing to your new address, what amounts you have paid and when, plus details of any charges owed by you to them together with details of when and where they sent this information to originally (with copy documents).

If it turns out they have tried to take money when they shouldn't have, they should apologise, refund the £20 charge your bank have made and that should be the end of the matter. If the charge is correct, you will at least know why.

Good luck