Direct debit question.

d87heaven

Not sure this is the correct forum but here goes.


I have been previously been insured with the AA on my home and contents. With divorce and house being sold I no longer needed the cover so cancelled the direct debit in the final month of cover. I then notice that the AA has retsarted a new instruction and resumed taking payments via DD again.

From the AA

Thank you for your email.
We sent out documents from the credit department on 25 December 2008 confirming that the direct debits would start again for the new policy.
As there was no record of any default on your account then we applied for the debit as per normal, and the bank paid it.

Each new policy is a new contract, which is why we send out new documents each year. The same applies for the credit department.
The mandate you cancelled was on the old policy, and therefore the contract ended when the policy expired.
We then sent out a new notification for the new annual contract, and when we didn't hear from you to the contrary, started to collect debits. Your bank accepted the new mandate because it was just that, a new mandate, not an attempt by us to reinstate one that you had cancelled.
I hope that clarifies matters for you.

I know I should have spoken to them and cancelled the policy over the phone or in writing bt I had a few other things on my mind.... doh!

simax

What is the question?

d87heaven

That would help woudn't it?

Can they set up a direct debit on the premise that I used to have one with them? I thought once I cancelled the direct debit that was that.

jonesMUFCforever

In the terms and conditions I think you will find that unless you CANCEL the POLICY with the INSURER then they will assume that the policy is to continue.
You could invoke the D/D guarantee and get the bank to refund you but this won't stop the insurers chasing you for this debt if they have a mind to.

Common sense says that if you can show proof that the house was sold and the insurance was no longer necessary then they should refund you - you can only ask.