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Direct Line. Is scam to strong a word.
radsatser
Posts: 4 Newbie
Hello,
Is the Royal Bank of Scotland using its subsidiary Direct Line to cynically exploit vulnerable elderly people to improve its balance sheet.
My mother in law is 80 years old and although living alone, like many relies on the help of her family to maintain her independence by looking after her affairs including her financial interests.
Last year I arranged home and contents insurance for her with Direct Line, a subsidiary of the now discredited Royal Bank of Scotland. The decision to go with Direct Line was based on personal experience with them for my own car insurance, and an online comparison survey indicating their product was good value. I arranged the insurance at a cost of £223.65 on the 17th April 2008 which she paid monthly at the rate of £20.52
A few days ago I received a concerned call from my mother in law telling me that she had received two letters from Direct Line on the 23rd and 25th April, the first was the policy schedule informing her of the renewal premium for 2009-2010 which was dated the 21st March, yet arrived over a month later. The second letter dated 16th April which arrived over a week later simply acknowledged her policy renewal, like most policies this one renews automatically if not queried. The first of the new premiums was therefore taken out on the 17th April 2009 over a week before she received any paperwork with regard to the new premium. I don’t suppose Direct Line can be held accountable for the possible incompetence of the Royal Mail, but it seems strange that both documents took so long to arrive.
Despite having no claims on the policy and no change in the insurance requirements, Direct Line had increased the premium by 108% from £223.65 to £465.15 or £42.64 per month. I contacted Direct Line and was immediately aware that the handler seemed on the defensive. He offered no explanation about why the increase was imposed, other than to tell me that there was a 35% discount on the original policy which was apparently on the online application form, and which I have to accept. When I asked him where the other 73% increase came from he was unable to offer an explanation, although he immediately offered me a 40% discount on the policy, which would have taken it down to about £280, still some £60 to £80 more than other companies. In the event I cancelled the policy with immediate effect and requested a refund of the premium. I have arranged an identical policy with Tesco which will cost her £215 per year or £20.35 per month.
I am seriously concerned about the sequence of events that occurred in this case, and feel that many more vulnerable people without the benefit of family support to pick up this type of scam may have already been ruthlessly exploited. Has anybody experienced anything similar.
Is the Royal Bank of Scotland using its subsidiary Direct Line to cynically exploit vulnerable elderly people to improve its balance sheet.
My mother in law is 80 years old and although living alone, like many relies on the help of her family to maintain her independence by looking after her affairs including her financial interests.
Last year I arranged home and contents insurance for her with Direct Line, a subsidiary of the now discredited Royal Bank of Scotland. The decision to go with Direct Line was based on personal experience with them for my own car insurance, and an online comparison survey indicating their product was good value. I arranged the insurance at a cost of £223.65 on the 17th April 2008 which she paid monthly at the rate of £20.52
A few days ago I received a concerned call from my mother in law telling me that she had received two letters from Direct Line on the 23rd and 25th April, the first was the policy schedule informing her of the renewal premium for 2009-2010 which was dated the 21st March, yet arrived over a month later. The second letter dated 16th April which arrived over a week later simply acknowledged her policy renewal, like most policies this one renews automatically if not queried. The first of the new premiums was therefore taken out on the 17th April 2009 over a week before she received any paperwork with regard to the new premium. I don’t suppose Direct Line can be held accountable for the possible incompetence of the Royal Mail, but it seems strange that both documents took so long to arrive.
Despite having no claims on the policy and no change in the insurance requirements, Direct Line had increased the premium by 108% from £223.65 to £465.15 or £42.64 per month. I contacted Direct Line and was immediately aware that the handler seemed on the defensive. He offered no explanation about why the increase was imposed, other than to tell me that there was a 35% discount on the original policy which was apparently on the online application form, and which I have to accept. When I asked him where the other 73% increase came from he was unable to offer an explanation, although he immediately offered me a 40% discount on the policy, which would have taken it down to about £280, still some £60 to £80 more than other companies. In the event I cancelled the policy with immediate effect and requested a refund of the premium. I have arranged an identical policy with Tesco which will cost her £215 per year or £20.35 per month.
I am seriously concerned about the sequence of events that occurred in this case, and feel that many more vulnerable people without the benefit of family support to pick up this type of scam may have already been ruthlessly exploited. Has anybody experienced anything similar.
0
Comments
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and the underwriter of the Tesco Policy is.....UK Insurance aka Direct Line / RBS0
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"and the underwriter of the Tesco Policy is.....UK Insurance aka Direct Line / RBS"
Tks for that, I didn't look past the Tesco quote. It now seems even more bizarre!!0 -
They also own Churchills
UK Insurance is their "White label" brand they use to underwrite a lot of other companies policies such as supermarkets etc.
The problem you have found is that Insurers give new customers big discounts to hook them in and then at renewal they do not invite with the discount included. The first years premium included the 35% discount to get you on board.
I think you will find the Tesco renewal will also go up at renewal so you need to keep an eye on the renewal premium when its due.
As you stated in your post you cannot hold Direct Line for any delays caused by the Royal Mail although obviously things do get delayed when leaving Insurers sometimes.0 -
and the underwriter of the Tesco Policy is.....UK Insurance aka Direct Line / RBS
UKI are no longer part owned by RBS - Tesco have bought them out recently. Most companies will increase the renewal premiums gradually and hope that you are complacent and stick with them, but the jump from Directline does seem rather large!!0 -
UK Insurance is still part of RBS group but no longer underwrite Tesco policies I believe.0
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