Car insurance direct debit cancelled and they now want full balance

stubs

I've had a letter off my car insurance company (Diamond) explaining that because I have missed a direct debit payment twice (single payment that they automatically re-applied to the same account for), I now have to pay the outstanding balance up front in order to continue with the policy.

They're asking for £500 to be paid within 5 days of the letter else they will cancel the policy.

I've tried calling them to explain why the payment was missed but they were having none of it and will not allow me to pay the missed payment and setup the direct debit for the rest from my other bank account.

I don't really have the £500 available in such short time and am unable to get the money from the bank.

Is there any way round this, or should I let them cancel the policy and move on elsewhere? I understand I will still have to pay them what I owe, but I just can't afford £500 right now

DarkConvict

Before demanding the £500 did they notify you that if you missed another payment they would seek the full amount, if they did why did you wait 2 months and only get in touch when they demanded £500 in one go.

My friend had trouble with Swinton insurance after changing banks, he did give them his new details though, missed 1 payment and they gave 5 days notice before ringing him up and saying your policy is cancelled you owe us £200+. Not heard back from Swinton since we gave them proof that they received the details well within time.

But in your case, I'm not to sure how to proceed. I thought a creditor is meant to give upto 3 months of arrears before closing the account and seeking the remaining amount unless you are now nearing your 3 month mark. By failing to pay you would been seen in breach of contract and as such within there rights to demand the remainder and cancel the service, whilst you could pay the debt over a period of time it would impact your credit file and obviously the £500 is then lost.

stubs

No, I haven't waited 2 months... this is all within this month.
The payment was supposed to go out on the 1st Nov but they didn't attempt to take it until the 3rd. They then made a 2nd attempt on the 13th, followed by the letter on 17th Nov stating that I had to pay the full balance amount within 5 days. It then said if the amount wasn't paid by the 27th then they would cancel the policy.

I'd understand if this had gone on for a couple of months, but isn't this a bit strong for the sake of 1 month?

Tixy

It does seem a bit harsh and I'm not sure the best way to deal with it. It might be worth phoning again to see if they will let you re-instate the DD.

Perhaps you could offer to pay some extra up front and the remainder split over the rest of the term, so that you will in effect be in credit with them. Might be worth a try - you might get someone more reasonable on the phone this time.

stubs

I've tried that aswell
Tried offering to pay £200 now but they said they would only accept £250 now and £250 in another 14 days (even though there's still another 6/7 months to run on the policy)
Not really ideal as I've just had to pay out for a new boiler and now dont have that sort of money available.

stubs

Aren't there any clauses in direct debit ruling that I could spout off to them that would allow me to catch up and continue with my direct debit payments?

vuittondreamer

I had this problem when i went for renewal last year with Sheilas Wheels, because i'd had two dd sent back over the policy span they wanted all the money up front for the next renewal.
if i was you i would look quickly at the comparison sites, and try and insure from today with a new company, but you will have to pay a deposit now and make sure you stick to the DD. You haven't technically yet had your insurance cancelled. You will also have to pay a £20-30 cancellation fee (eventually) with your existing provider. I can't see any other alternative, because you'll have to declare that you've had a policy cancelled.
It's a rotten situation to be in, i know. x

10past6

stubs wrote: »

Aren't there any clauses in direct debit ruling that I could spout off to them that would allow me to catch up and continue with my direct debit payments?

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