Swinton swindle?

Ninjatraceur

I have had my insurance with swinton for a year and during that year it became financialy unviable for me to keep it on the road. I saw the year out and before my policy finished they wanted me to renew with them i explained to them it seemed ludicrous for me to pay out on insurance on a car im not even using and trying to sell (The car is parked on my drive way and not on the road) so i wasnt interested in re insuring with any one and i proceeded to cancel the direct debit after having paid one years insurance. A while later i get a letter from them charging me for cancelling a policy i didnt want and i didnt sign for, according to their notes i was supposed to call back if i wasnt interested i have wrote to them arguing my point to which i recieved another letter stating if the sum wasnt paid within 7 days i shall be hearing from a debt collecting agency!! Can they do this? To me it seems like daylight robbery! :mad:

rudekid48

Have you listed your car as SORN?

If so, provide proof that your car was off the road at the time of renewal and they will then have to just 'lapse' your policy.

Always put things in writing - this then wouldn't happen.

Ninjatraceur

Yes, my car is listed sorn. How does that work 'Lapse' policy? excuse my ignorance. Would this stop them from charging me? : )

rudekid48

When your policy is due for renewal, if it is not renewed and therefore expires - this is known as 'lapsing'.

If the policy is renewed for another year then it needs to be cancelled.

No-one can charge you for 'lapsing' a policy as it has simply expired. They can charge you to cancel a policy though.

Was your car SORN on the date that the policy was due for renewal? If so, you will need to put everything in writing to swinton and send a copy of your SORN to prove that you had taken your car off the road. You need to make sure that you tell them that the policy should have 'lapsed' - do not use the term cancel.

Ninjatraceur

Excellent, will do cheers. : )
Ill let you know how it goes.

magpiecottage

If you told them before the policy expired that you did not wish to renew, they cannot charge you for it.

The contract simply lapses, runs out, ceases to exist, it is an ex-policy.

Sorry - got a bit carried away there!

Anyway, threatening you with debt collectors for no renewing a policy you no longer need is unacceptable.

I think it would cause a reasonable person unwarranted distress and, without having all the evidence, suspect I would be recommending they paid you about £50.

Swinton is not a client of mine but you can complain to them on the telephone, by post of by e-mail. If they tell you to put it in writing, tell them the FSA handbook makes clear that complaints can be oral - see here (it is definitions 2 and 3 that apply).