Post office car insurance payment problems

kobeyu

I got car insurance from post office in December 2008.
Some months later I moved house and notified them of this, paid a small amount in admin fee and moved on.

A week or so after this they called me to say they never received the initial payment (about 350 quid). I checked my bank statement. I *had* paid it. Post office said that the payment was stuck with cardnet and gave me a number to give to my bank, to give to cardnet, so that cardnet would give the money back and then I'd pay them again. I thought this was odd, and the bank didn't really want to do this (or didn't understand, or something), but the bank did send me proof of the transaction. I sent this onto post office and didn't hear from them again. I figured they must have dealt with it.

Now that insurance term has expired, they have sent me another letter saying I've never paid for it. Phoned them up again this morning, and we're back to the start, they want my bank to get cardnet to give me back the money etc.

My questions:
1) What the hell? How is this my problem? *vent*
2) Does anyone have any useful bits of information about the card payment system? I don't really understand it from here.
3) Does this happen often? Should my bank know about this kind of thing?

Quentin

Reply in writing that you did you pay them, the money has been taken from your account, send them a copy of the proof of the transaction and ask them to confirm you do not owe them anything at all. They should take this up themselves with their card company and your bank.

It's not your problem, but unless you get them to confirm this to you, it could escalate.

FH_Brit

Simple answer for the future - only pay the vendor directly not a third party like Cardnet, PayPal etc.

Send a check that is traceable that paid into the Post Office and not to a thirtd party. Your best bet is to put in writing that THEY (Post Office/Underwriters) engaged and chose Cardnet to collect their money, it was not your choice and you can prove that you have paid THEIR APPOINTED AGENTS, and that any further dispute is between your insurers and THEIR agents.

Be careful though that proof of payment is acceptable, a photocopy is not "court evidence" as it can be "made" on your computer. An original statement or letter from your bank would be needed.

Be also aware that here there is an error - make sure it's not your bank's error that took the money out of your account but never paid Cardnet. If it is the bank's error you still owe the money to the insurer as YOU had their service.

kobeyu

In the interest of posterity:

This matter was eventually resolved after the post office asked for duplicate bank statements for the month containing the payment and the 3 or 4 months following that (to show the initial payment and the absence of any kind of refund). The post office paid upfront for this (my bank charges £5/statement).

They sent me a letter with a standard looking apology. I have no idea what happened (whether they found the money or decided that the money was lost, but I definitely didn't have it so am not responsible).

Anyway, all resolved satisfactorily, but after such stress has definitely left a bad taste...