Quick question about cancelling a direct debit

Scaredy_Cat_3

Hi

Stupidly forgot to cancel the direct debit for car insurance... actually, we have just changed insurance company and I didn't want to cancel the old one until I had all the paperwork through for the new one. Plus I forgot the payment due date, thought it was mid-month, turns out it's 1st of the month.

So, new car insurance takes effect from 1st June. I am writing to cancel old insurance now. Meanwhile, I've just checked my bank account online and see they have already debited the DD for the old company with a date of 1st June. I've just cancelled the DD online. Technically I have cancelled before the due date, but have a nasty feeling it will be too late to stop the payment going through.

Can anyone advise if this DD will automatically be stopped or will I have to ask the bank to sort it out and just wait for a refund?

withnell

You need to leave a couple of working days for a direct debit to cancel, so the payment will have sent

Scaredy_Cat_3

Thanks - that's what I thought! I am cross with myself because I almost cancelled it a few days ago but decided to hang on until I did the finances in full (regular end of month job) and hadn't realised the payment date was 1st of the month!

BruceyBonus

Phone the insurer and ask for the old policy to be cancelled. If the renewal date is 1st June (i.e. you phone and cancel before the policy renews), then the insurer will arrange for you to be refunded for the extra payment that has been taken.

I_luv_cats

Ask your bank??

Depends on the bank! Some banks allow you to cancel it by mid afternoon on the previous working day, before payment is due.

You may have to give notice to your insurance company and also pay them a cancellation charge (a months premium??)

Scaredy_Cat_3

Tried to ring the insurer but they are closed until Monday. I don't really see why I should have to pay a cancellation fee - I have sent a letter to cancel the policy and this was posted before the renewal date.

I have done a letter to my bank, too. Just tried to ring them and now I remember why I don't use telephone banking!!!! First I rang telephone banking, who were lovely but couldn't help so transferred me to online banking - who were useless and tried to say I should ring telephone banking. He sounded like he didn't have a clue - said I should cancel a DD one working day in advance (which makes sense)... but he was happy to cancel future payments, then he noticed it had already been cancelled, and said he had never seen this before. Then he said maybe I should ting them back tomorrow as they have a specialist team who might be able to help, but really he wasn't sure. I have the distinct feeling I was being fobbed off!

Well, I guess I messed up - I should have cancelled it a few days ago, but I still think I am entitled to my money back as I am cancelling prior to renewal. I guess it might just take a couple of weeks.

BruceyBonus

When did you post the letter to the insurance company? Who are the insurance company?

Phone the insurer on Monday anyway, first thing in the morning. Most insurers don't charge a cancellation fee in the first 14 days, just a charge for the time on cover (in your case, one day). But there may be a minimum premium. If you post the company's name, I'll have a look.

jonesMUFCforever

Phone or call at the bank on Monday and ask for the D/D to be recalled.

scouselad1974

Hi

I banked with A&L and wanted to cancel a direct debit to my inurance company a day after my payment had been taken so that I could set up a new direct debit mandate with my new bank for the next payment, I accidentally cancelled the direct debit on the date it was due rather than the day after and A&L returned the payment, I was always under the impression that a Direct Debit had to cancelled a working day before it was due, maybe every bank has different rules

Scaredy_Cat_3

BruceyBonus wrote: »

When did you post the letter to the insurance company? Who are the insurance company?

Phone the insurer on Monday anyway, first thing in the morning. Most insurers don't charge a cancellation fee in the first 14 days, just a charge for the time on cover (in your case, one day). But there may be a minimum premium. If you post the company's name, I'll have a look.

The company is Masterquote/BDML.

I've only posted the letter yesterday so they won't even have it yet, but legally the letter is dated and posted prior to renewal. I didn't anticipate a problem because I assumed the DD was mid-month like most of my others. I guess this is why they set it up for 1st of the month, to catch people out!

BruceyBonus

Scaredy_Cat wrote: »

The company is Masterquote/BDML.

I've only posted the letter yesterday so they won't even have it yet, but legally the letter is dated and posted prior to renewal. I didn't anticipate a problem because I assumed the DD was mid-month like most of my others. I guess this is why they set it up for 1st of the month, to catch people out!

Unfortunately they do charge a cancellation fee:

Within 14 days of receipt of the policy documentation you can decide not to continue with the policy. You can either call us or write to us to confirm this and return your Certificate of Motor Insurance. We will charge for the time you have been on cover, as well as a £20 administration charge levied by the Administrator.

I believe the letter would only be considered received when they actually receive it. This would work the other way round too - if they wrote you a letter then expected you to action it before receipt, it would be unfair.

According to their website, they were actually open from 9am until 5pm today.