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Help needed asap!!!

I agreed to help my FIL out as he is bankrupt and cannot get a bank acount. i agreed to pay his monthly car insurance installments out my acc withhim giving me the money each month. he sold his car as he was no longer able to afford it and wrote to the Post Office to cancell the policy. we thought that would be it until yesterday when they took over £300 out of my account. this is a cancellation fee!!!! i have had all the money taken out of my account and am now stuck with 5 children to feed and no money. FIL cannot pay me as he does not have any money and is also stuck. PO are refusing to refund the money and have not sent any sort of letter stating they would be taking this money out of my account???
do you have any idea on what to do as the PO are not helping and are not interested, i dont have anyone i can borrow from and am really worried about this!
What's for you won't go past you
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Comments

  • Hi there

    Phone your bank and tell them that the money was taken without your permission (they are required to give you notice of amounts under the Direct Debit Guarantee) and ask them to claim it back.

    Send a letter of complaint to the Post Office (FIL will have to do this as the policy was in his name) and ask for a full breakdown of the charges. Make sure you put at the bottom of the letter "Please make sure you send me your FINAL RESPONSE in writing as I will want to pursue this matter with the Financial Ombudsman Service if I am not satisfied with the outcome".
    In the beginning, the universe was created. This made a lot of people very angry and was widely regarded as a bad move.
    The late, great, Douglas Adams.
  • cazscoob
    cazscoob Posts: 4,990 Forumite
    The bank are saying that it was made my a debit payment not a DD which was unauthorised! i can wait 30 days and then file a fraudulant payment which can take up to 6 months!!!


    the charges are £35 cancellation fee and £265.80 short term rate?
    they had taken 2 payments of £70 and the policy would have been continued if he knew the fees would be soo much! or at least had money put in my acc to cover it if he had known! but im stuck now with nothing?
    What's for you won't go past you
  • Hi there

    I'm afraid this comes down to the terms of business that FIL will have been provided with at the time he took the policy out.

    When you set up a policy, the insurance company incur most of the costs at the outset (they send you all the documents, pay brokers fees and price comparison site fees), so they will often say that if you cancel after 14 days, they will charge you a set percentage of the premium plus a fee. The 14 days "grace" is to give you time to change your mind without being penalised, but after that it's standard that you will be charged. For up to 3 months cover, you could be charged up to 50% of the annual premium.

    I hate to say this, but what they have done to you is what any other insurer would have done (other than taking the money without consulting you first). Sorry to bring you the bad news...
    In the beginning, the universe was created. This made a lot of people very angry and was widely regarded as a bad move.
    The late, great, Douglas Adams.
  • Just to clarify, I'm not condoning what they have done. I personally don't like the practice, but it is something that happens across the market.
    In the beginning, the universe was created. This made a lot of people very angry and was widely regarded as a bad move.
    The late, great, Douglas Adams.
  • cazscoob
    cazscoob Posts: 4,990 Forumite
    the amount they took plus the payments was probably more than the actual policy amount!
    i have asked them to refund me and bill him but they have refused, the bank have said that as the payment was taken from me i can issue a fraud case against them in 30 days as i have not recieved any business or services from them
    What's for you won't go past you
  • *MF*
    *MF* Posts: 3,113 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    cazscoob wrote: »
    The bank are saying that it was made my a debit payment not a DD which was unauthorised! i can wait 30 days and then file a fraudulant payment which can take up to 6 months!!!


    Hi ...

    Can you clarify ... was there a direct debit set up, and if not how were the two payments of £70.00 made?
    If many little people, in many little places, do many little things,
    they can change the face of the world.

    - African proverb -
  • cazscoob wrote: »
    the amount they took plus the payments was probably more than the actual policy amount!

    Not sure how that can be if the monthly amount was £70, or do you mean the monthly amount was £35 and they'd taken 2 payments?
    In the beginning, the universe was created. This made a lot of people very angry and was widely regarded as a bad move.
    The late, great, Douglas Adams.
  • cazscoob
    cazscoob Posts: 4,990 Forumite
    it seems to be debited from the account not set up as DD?
    What's for you won't go past you
  • *MF*
    *MF* Posts: 3,113 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 25 February 2010 at 6:00PM
    cazscoob wrote: »
    it seems to be debited from the account not set up as DD?

    For anyone to take money from your account requires your authorisation - and I would expect that to be by direct debit. (I know the problem is the amount now taken - but I am hoping the solution lies in how the other earlier payments were agreed, ok. There has to be an agreed method which you authorised - and I still supect it would be a direct debit - I could be wrong.)

    Can you remember what you signed when this was arranged

    - and/or can you check with FIL and ask him to go over the paperwork he got - it will say in there how payment was to be made

    - and/or can you check your bank statements to see what they say?
    If many little people, in many little places, do many little things,
    they can change the face of the world.

    - African proverb -
  • cazscoob
    cazscoob Posts: 4,990 Forumite
    It was set up online so nothing was signed, the £70 a month was agreed to be payed to me and the taken out the bank each month. It has the name of the company and amount on online banking but in the DD list there is nothing with the PO account, it has my car ins, household bills etc
    thanks
    What's for you won't go past you
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