No payment taken in 5 months - can I cancel?

josephine1888

To explain the situation briefly, I took out insurance at the end of November and my first Direct Debit was due to come off in December. No payment was ever taken. (Sent a credit agreement from Premium Credit to sign with a credit limit of £1.5k so I presume this is a loan agreement?)

Phoned in January and told payment would be taken at the end of January – again no payment was taken, same again for February.

Spoke to an advisor feb/march and felt I was getting somewhere when I received my contract to sign. Initial payment was £41 a month, however due to the company’s error in not taking the money they have redone the agreement and increased the amount to £63 a month. I accepted this and was just happy that I was getting somewhere and payment would be taken.

A week ago the company tried to take out £83 out of my account - £63 payment plus a £20 charge. When I spoke to them they confirmed that the £20 was added in error. I did not have the amount in my account to cover the £20 extra charge, therefore payment was refused and a bank charge was given.

Spoke to them last week and they told me to cancel my direct debit and to phone them when they write to me demanding payment.

My question is - I have not signed the credit agreement yet. Am I able to leave this contract as I have been mucked about from day one. Come next month my monthly payment will be doubled what I was supposed to be originally paying.

Sorry to ramble

Thanks