can my insurer cancel my policy if....

shashi19128

cjgoodsell wrote: »

Thats interesting... I've heard some banks or the type of account will automatically cancel the direct debit after it was refused and then the bank has problems setting it up again by refusing it...

Even if it was their own fault they may of sent you letters saying they are missing certain payments and then given you a time frame to pay it... You say feb payment was missing but its now May so are you nearly 3 months behind on your direct debit plan?

Who told you the DD was refused? There has to be a problem between their accounts teams and your bank...

yes, all payments are up to date. tho the dd was not in place, i still phoned up to make payment. they never sent me a letter stating that if i didnt have dd details in place that they would cancel my policy. and i cant find it in the terms and conditions. but im looking to take it to the ombudsmen tomorrow to see if i have a case.

just to put everyone at rest to the payment dispute. all payments have been paid up to date, last payment to them was received on the 29th april. feb, mar and apr were all paid by single card payment. thanks

glider3560

shashi19128 wrote: »

but im looking to take it to the ombudsmen tomorrow to see if i have a case.

The Financial Ombudsman will not be interested until you have used the company's own complaints procedure and either been issued with a final decision or waited 8 weeks and not received one.

shashi19128

glider3560 wrote: »

The Financial Ombudsman will not be interested until you have used the company's own complaints procedure and either been issued with a final decision or waited 8 weeks and not received one.

yea im going through that now. and as the people im dealing with are brokers, they say im not going to get anywhere. but i will wait for the final letter. but in the mean time i will contact the ombudsmen for some advice and see where i would stand once the letter arrives

cjgoodsell

Have you referred to the terms of the credit agreement because it would be in there... Not having a valid direct debit instruction is shown to be a breech of the agreement... What you need to do is find out WHY the instruction couldnt be set back up... Your insurance company as far as they are concerned sending it to the bank and requesting it and the bank refusing to and that would not be deemed their fault...

shashi19128

it couldnt be set back up because on the banks computer the dd was set to cancelled so when the company tried to take the money, the bank refused. thats the reason. but i just find it silly that even tho they are getting there money each month, they are still cancelling the policy.

cjgoodsell

then speak to your bank because clearly the insurer was trying to get the direct debit re-set back up so they can take their money they were attempting for each month but your bank was not re-setting it up... from what your saying your bank is at fault your insurer have tried several times and probably within their procedures now and able to invoke cancellation due to not having a Valid direct debit instruction in place for their policy.

starrystarry

cjgoodsell wrote: »

then speak to your bank because clearly the insurer was trying to get the direct debit re-set back up so they can take their money they were attempting for each month but your bank was not re-setting it up... from what your saying your bank is at fault your insurer have tried several times and probably within their procedures now and able to invoke cancellation due to not having a Valid direct debit instruction in place for their policy.

It isn't the bank's fault. As I said above, most banks will not allow a second DD to be set up with the same reference number. So no matter how many times the insurance company tried to set up a new DD, it would always show as cancelled at the bank's end. What needed to happen was for someone to ask the bank to reinstate the original DD. OP, did you speak to the bank at any point?

cjgoodsell

starrystarry wrote: »

It isn't the bank's fault. As I said above, most banks will not allow a second DD to be set up with the same reference number. So no matter how many times the insurance company tried to set up a new DD, it would always show as cancelled at the bank's end. What needed to happen was for someone to ask the bank to reinstate the original DD. OP, did you speak to the bank at any point?

I feel it is the banks fault because the company I work for uses the same reference no matter how many times the customer/bank cancels the dd we are able to get the direct debit re-set up once the payment was resolved paying by card/cash.

starrystarry

cjgoodsell wrote: »

I feel it is the banks fault because the company I work for uses the same reference no matter how many times the customer/bank cancels the dd we are able to get the direct debit re-set up once the payment was resolved paying by card/cash.

But clearly this particular bank was not prepared/able to set up a new DD under the same reference number. Doesn't make it their fault. They're not responsible for making sure the premiums are paid on the policy.

I'm not saying it's all the OP's fault either, it seems she did try to sort things out. But the problem all stemmed from the initial DD that bounced.

cjgoodsell

Then the onus has to be on the bank their refusal to set up the direct debit has invoked that insuarance companies cancellation process. I can see the inusrer being able to justify the reason they invoked the cancellation. Follow the complaints process for both the bank and the insurer then that way can find out who really is responsible for this..

I do believe the insurer probably only followed their procedure for not having a valid direct debit instruction in place anyway they would of sent out letters to show they tried to get in contact with their customer to resolve this before they cancelled and their customer may not of got those letters but the insurer can prove they sent them.

Its a tough one to call has something been added to the bank accounts thread about the refusal of the bank to re-set up a dd under the same reference? Because then someone there might be able to shed some light onto this as well...