Please help insurance cancelled by company,who are now claiming full payment!!!

Milliemania

Please can anybody help me please, sept 08 i took a policy out with a certain car company the first 2 months payment went out fine but then the 3rd and 4th months the payments were late by a day,all payments were ment to be direct debit,the 3rd month i had already cancelled the D.D and paid a day late and the same with the 4th month.Then i was told i had supposedly defaulted and had to make the payment in full for all the months i would of been with them which is approx £1500.The funny thing is i cant remember signing anything all correspondence was done either online(1st contact) and then over the phone(to purchase insurance).A debt collector has now written for payment on 2 occasions.. What can i possibly do? Was this insurance company right to do this considering they cancelled it and not me? Will this affect my application for future car insurance with other people? Has anyone else had similar problems? Any help would be very much appreciated thank you.

BenL

Yep, i'd agree with Dan.

The finance arm of the insurance company will have paid the full premium to the insurance arm and now you owe the finance arm the advanced amount (plus maybe 25% apr interest at a guess, or 16% ish if you were lucky)

The insurance should still be running.

have a look on http://www.askmid.co.uk/ to see if your car is listed as insured or not (not foolproof though i believe)

dunstonh

but then the 3rd and 4th months the payments were late by a day

direct debits always go out after the weekend if it falls on a saturday or sunday (or bank holiday).

The rest of your post is hard to follow as it doesnt indicate if you cancelled it or they cancelled it (you say you cancelled the D/D then later you say they cancelled the insurance).

Will this affect my application for future car insurance with other people?

If they have cancelled it due to non payment then you will need to declare that. It will also damage your credit rating as you used a credit agreement to pay for the insurance and now have defaults. It may not have got as far as that bit yet.

Milliemania

Sorry i took long to reply,this 1st insurance got cancelled last november,im now using another company,but the old one still saying i should pay up

dacouch

How much was your original premium and how much are they asking for?

Milliemania

Ok i have just checked my bank statements the payments go as follows 6th sept 08(which was a saturday) rang to buy insurance,paid by card which came out my account 9th sept 08 the amount £164.92. Payment was then set for the 6th of every month.The next month october i didnt pay on time i paid a week later on the 14th amount £164.79,Then the next month November i again didnt have another funds for the payment(7th November) for direct debit,but on the morning money was ment to be taken out i rang the company and told them,they then said they would reapply for it again within the next 14 days.The date was confirmed for the 19th november 08.The morning of the 19th i knew that the direct debit would come back unpaid due to insufficent funds in my account but i rang them 1st thing that particular morning and informed them that i could pay them now over the phone via my debit card,they then said they had to wait to see if it would be declined even though i kept telling them it would.I tried my hardest for them to take payment via my debit card but they persisted in refusing.So the next day knowing it had already been declined i rang back to pay via my card again,this time i was told i had defaulted on my agreement(even though i dont remember signing anything)and that they were cancelling my insurance unless i paid up the full amount there and then which was 1,532.41,i then informed them i couldnt and wouldnt be paying this amount because i didnt have that type of money i was then informed if i dont pay it would be referred to a debt recovery,they did apply for the 1,532.41 which i didnt have or pay on the 17th december 08...............In february this year a company called direct,legal collections wrote to me about the money,now a place called Aplin Stockton Fairfax has got involved still wanting payment.... What could or should i do? I didnt cancel contract and dont remember signing anything?

rudekid48

How could you pay with your Debit Card if there were insufficient funds in your account?

dacouch

Have you had a claim on the policy by any chance?

Milliemania

rudekid 48......... i had the money and put into the account about 10am,but they had already tried to claim it by direct debit by then



dacouch......yes a claim was made

rudekid48

OK, you didn't mention the claim bit originally. If your Insurer has paid out then they will want the full annual premium from you as they have upheld their side of the bargain by covering a claim but you have not upheld yours by paying for the policy.

They may be agreeable to some payment terms but they are going to want paying.

dacouch

As Rudekid mentioned, with Insurance Companies, when you make a claim on your policy however big or small. In these circumstances they would not refund any money if you had paid the premium up front and cancel, if you are paying by instalments and the policy is cancelled then the rest of the instalments are due up until the renewal date.

Was the claim a small claim eg a windscreen claim, the Insurers might allow you to pay the claim back and then the amount outstanding may be reduced dramatically, it might be worth asking them about this.

As Rudekid mentioned the Insurers may allow you to pay the outstanding over a few instalments.

Were the instalments being collected by a company called Close or Premium Credit