Help please re Insurance company took money out of my account

the_blacksmith

Hi new to this so please be kind, and if its in the wrong section could someone please move it to correct one thank you.

Briefly 10 months ago I helped a friend that was in hospital by paying his monthy car insurance over the phone using my debit card. I thought nothing more of it and was repaid the £20 or so quickly.

I have just discovered to my horror that the insurance company have just taken £350 out of my bank account. (money I havent got so am now overdrawn).
I phoned them up this evening.

Firstly they wouldn't give me any information stating Data protection, I insisted they did talk to me, it turns out the person I paid for has defaulted on his payments and it has gone to a debt agency and its these people that have tracked previous payments made and used my card details to take this £350 payment.
They have told me that in the small print of the policy which he signed they are allowed to do this with any card he made payment with, thats fair enough but he didn't make the payment I did.
I have never seen or signed this policy and I was just helping at the time.
I am due to go into the insurance office on Saturday so they can speak to debt agency on my behalf, (they wouldn't or couldn't give me details).

I have also spoken to this friend and he said he would phone them tomorrow, I know he has not got the £350 to pay me as he's now unemployed, he also said he cancelled the policy months ago.

Basically his problem is not mine and thats for him to sort out, but I would really appriciate any advice on where do I stand ? the way I see it is I have been robbed from my bank account, what right do they have to access my bank account and just take a large sum of money like this.

Looking forward to reply's, thank you.

opinions4u

I would be amazed if the legal position supported the insurance company/debt collection agency in these circumstances.

Make the visit. Ask nicely for them to return your funds. Then ask firmly. Then tell them that you will pursue this as a criminal theft and it will become a police matter.

If you get no joy recovering your money then I would suggest that you report it to the police as a theft. Google your local trading standards office too - they should be able to advise.

I would also suggest that you write to the money pages of a newspaper (e.g. the Wednesday Daily Mail) and see if they'll support you in recovering funds.

It worked for me a few years ago in a different matter!

I won't lecture you on the obvious lesson to learn from this ... I doubt you need it!

miss_emily_3

I used to work for an insurance company and when taking payments on card, had to ask if the customer would like us to retain their details for future payment. You would assume without this consent no future payments can be taken. I would have thought this would be the same for most insurance companies.

As far as I am aware they have no right to take this payment. I would speak to my bank, they should be able to help.

the_blacksmith

Thank you for your help and advice, I will do my best to stay calm Saturday.

FH_Brit

Blacksmith - First of all I assume your card is a visa/mastercard? In this case the FIRST thing you should do is call the credit/debit card customer service number on the card or your statement and tell them that you "dispute this charge as an unauthorised payment" as a merchant the people who took the payment agree to the terms of visa/mastercard and that means that only authorised payments can be taken (I know this is so with credit card and assume same with debit cards) If you dispute the card company will reverse the payment and it's then upto the merchant to prove YOU authorised this payment - which of course they cannot, as you only authorised the original £20

jambosans

FH_Brit wrote: »

Blacksmith - First of all I assume your card is a visa/mastercard? In this case the FIRST thing you should do is call the credit/debit card customer service number on the card or your statement and tell them that you "dispute this charge as an unauthorised payment" as a merchant the people who took the payment agree to the terms of visa/mastercard and that means that only authorised payments can be taken (I know this is so with credit card and assume same with debit cards) If you dispute the card company will reverse the payment and it's then upto the merchant to prove YOU authorised this payment - which of course they cannot, as you only authorised the original £20

Most banks will argue you must dispute it with the company first of all to resolve the matter and then follow a debit card dispute process. I'm talking strictly banks accounts here, have no idea about credit cards.

Seeing as you are disputing this with the company first of all I would see how far that takes you as they can probably refund quicker. If you dispute with the bank not all will refund you there and then.

the_blacksmith

Thank you so much for the advice, straight after reading advice from F H Brit I got onto my bank (visa) they have started a dispute and I will recieve some paperwork to fill in and return in the next two weeks, so guess it will be slow.
I feel reasured now that my money will be returned as I had never given permission for them to keep my details they don't even have my address.

I have some savings which I will transfer to my bank account to cover overdraft for now, (authorised so no charge).

I have always been careful with money and rarely go overdrawn so this hit me for six, without your help and advice I would still be stressing out so a great big Thank you to all.:T

PaulW922

I agree with the above. If you friend had given the company his Visa card then they might have grounds for taking the £350 under the terms of the small print. You however do not any agreement with them and they have no contractural right to take that money. What they are effectively saying is that 'we agreed with your friend that we would pay his debts from your account, so that's ok'.

I agree you should ask your bank to refund the money. Even if your card scheme is not a Visa/MC you can still insist on a refund becuase you never authorised that transaction.

I would love to take a debt collection company to the small claims court. That could be your last resort.

Whatever you do, don't hang about..

the_blacksmith

As everyone was so helpful with advice I thought you may like an update.
I went as arranged to the insurance office today and the Manager got onto the phone to the debt collection agency, I could here her saying ' oh dear ' and 'oh no' several times so I was expecting bad news, she asked them to talk to me and explain.

He told me that they had written to said friend end of April asking if the payment made last July 08 was his debit card, and they warned him if he didn't reply they would assume it was his card and take £351.90 out of the account.
He didn't respond so they took the money, they are going to refund me next week after the bank holiday and also pay any overdraft fee's I may inccur.

I still don't know what debt agency took my money, I am not allowed to know? just have to go through S******S Insurance for contact.

I also questioned the debt agency as to why they have my 3 digit card number (on back of card) as without this they couldn't take card holder not present payment, he couldn't answer but said he would speak to his Manager.

I still feel I need to complain about this but only after I have received my money back.
Will let you know when or if I receive it, will continue with disbute if no refund by next Friday.

Have spoken to friend who is actually a friend of my Sons and I am trying to get him to face up to this debt in the nicest way I can, he lost his job a few months ago and simply doesn't have the money.
Thank you all.

PaulW922

You know, becuase debt collection agencies are all t*****s, and might keep your details and try again, you might want to think about asking the bank to issue a new debit card? It shouldn't cost anything given what has happened and it will have a new expiry date and three digit cvv code.

I must say I find it difficult to beleive, despite what was said, that they wrote to your son's friend and said 'is this your card?'. I would hazard a guess they just wrote and said, on xx date we will do this.