Insurance Companies retaing card details

glitter123

I have noticed increasingly that insurance companies are retaining credit/debit card details when you make a payment and at renewal send you a quote saying they will automatically debit the card. They cite this as being for our benefit but I object to this.

Last January my daughter bought a new car and I paid for the insurance using my credit card. In keeping with the regulations they had to speak to me (the cardholder) on the phone before taking the payment. At no time was I told my card details would be retained for future re-use.

Surely they should have to ask permission first?

alias123

'Budget' are notorious for doing this. You have to be on the ball and cancel the renewal otherwise when the time comes the whole amount is debited!!!:cool:

McKneff

Its all in the terms and conditions on your policy.
This is normal practice nowadays.

glitter123

McKneff wrote: »

Its all in the terms and conditions on your policy.
This is normal practice nowadays.

It's not my policy though!

cjgoodsell

I thought it had to be stated on the renewal letter as a minimum requirement so they can pre-warn you before its debited and give you time to call and "lapse" the policy. Some companies will ask you when you are transacting a New Business or Renewal with them but that all depends on how they interpret FSA rules on this matter.

The company I work for started introducing auto-renewal on the card and we have a compliance script on asking for this, but that is how we interpret the rulse with the FSA.

I know one company that wouldnt debit your card until 2 weeks after yoru renewal so would give you time to make sure money was in the account if you wanted it or if you didnt want it time to cancel the transaction so you didnt have the headache of it leaving your account and being refunded the latter taking forever to happen!

dunstonh

It's not my policy though!

As you paid it, you in effect agreed to it.

I thought it had to be stated on the renewal letter as a minimum requirement so they can pre-warn you before its debited and give you time to call and "lapse" the policy.

It is. Most have it in the renewal letter (so not hidden) and it clearly says what will happen next and what you need to do.

glitter123

Oh yes it's on the renewal but I only know because my daughter showed me.

The point is i don't want them to keep my details and I should have been given the choice.

cjgoodsell

glitter123 wrote: »

Oh yes it's on the renewal but I only know because my daughter showed me.

The point is i don't want them to keep my details and I should have been given the choice.

Does yor daughter what the renewal? If so is she paying for it this year or are you? If you are maybe you call them when your wiht your daughter then you can ask them to remove youre card from their automatic renewal system.. Should be easy to do.