Car insurance issues!

mm268

Hi there, Im new to this forum but find myself in a tricky situation!

I cancelled my car insurance with elephant.co.uk on 27th september 2009 as no longer use the car. I was paying £100.18 per month via direct debit. Upon cancelling it, I was told that I had a £49 cancelletaion charge which they would take in 7 working days, no problem i thought as money was availabe etc. I sent my covernote back to them all ok.

I was then contacted 2 weeks later saying that the card details they had for me are incorrect(even though they had no problem with the Direct Debit before) and i had 7 days to respond. This was the morning before i went away on holiday for 2 weeks. This was the last i heard from them.

In yesterdays post, i got a rater rude letter from C.A.R.S debt collection agency saying that an amount of £309.09 has been passed to them from EUI ltd, (elephant.co.uk) and they have added a £20 admin charge, meaning i now owe them £329.09. I have been told i have 7 days to respond otherwise they will take further action, either sending a debt collector to my house,issuing a default notice or take me to court?

I phoned Elepahant.co.uk and basically said what the hell is going on, to which i was answered with "its in the debt collection agencies hands, deal with them"

I have no signed paperwork from Elepant.co.uk agreeing to the Direct Debit or the insurance, it was only agreed over the phone and then in the infomation pack i have my copy of an agreement but with no signitures?

I dont earn a great deal, and although i may have been neglegant in not responding to elephants letter when i went away, surely this is unfair as i dont undestand how i owe £330!!!

Any help would be greatly appreciated.

Thanks
MM:beer:

vaio

I'd guess you weren’t paying a £100 for insurance, you were paying £100 on a credit agreement which was used to pay for your insurance.

You need to read exactly what your policy says about cancelling and tell us when the policy started and how much it was for, then you will get meaningful advice.

Quentin

You need to ask them to itemise the debt for you.

You may have misunderstood the £49 cancellation charge as being the final amount you owed them when terminating the policy mid term.

In fact that would just be their admin fee for the cancellation, but you would still owe them some premium and some interest, and maybe as well an early repayment fee if you had taken a loan and were paying this back by monthly instalments.

Anihilator

Yet another complete and utter !!!!ing idiot who enters an annual contract then thinks they should be able to cancel, ignore correspondence and then cry to the courts or ombudsman when exactly what is stated in the terms happens.

Threads like this are becoming very very tedious.

olly300

Anihilator wrote: »

Yet another complete and utter !!!!ing idiot who enters an annual contract then thinks they should be able to cancel, ignore correspondence and then cry to the courts or ombudsman when exactly what is stated in the terms happens.

Threads like this are becoming very very tedious.

No need to be nasty.

The user is new and obviously doesn't know:
1. How to use the search facility of this forum
2. That more that the insurance board deals with this issue

Rolandtheroadie

Anihilator wrote: »

Yet another complete and utter !!!!ing idiot who enters an annual contract then thinks they should be able to cancel, ignore correspondence and then cry to the courts or ombudsman when exactly what is stated in the terms happens.

Threads like this are becoming very very tedious.

Why not just ignore them then if they cause so much stress. If you cant say anything nice........

plane_boy2000

I imagine that there was a cancelation charge of 49 quid, but also a penalty of a couple of months cover (200) plus any interest charges - would be around 300