We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Car Insurance Cancellation Help

Hi

Well here goes; due to being made redundant I had to cancel the direct debit to my insuarnce company(It's 4 me/Swinton). I still made payments ontime with my debit card,over the phone. Unfortunatly I had to do this as I never knew when i'd have the money spare in my account to pay them, and couldn't afford bank charges on top.

After 3 months of paying them like this they have cancelled my insurance saying "due to not having bank details on file, the underwriter would not pay out on the policy in the event of an accident. Thus voiding the policy" as such it's cancelled with 7 days notice.

They then have sent me a cancellation bill for the privaledge of not accepting my payments over the phone totaling £91 and requested I make a payment over the phone.( I know ironic).

It does state in the financial agreement that payments have to be made direct debit, but not in the actual policy. It also states nothing about not paying on direct debit, but they do have the right to cancel the policy if payments are not being made.

I'm now a little bit stuck, I want to know whether this is legal what they have done, and do I have to pay this? as i don't know I can afford new cover and this payment as well.

Any help will be greatly appreciated and thanks in advance.:(
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 347.2K Banking & Borrowing
  • 251.6K Reduce Debt & Boost Income
  • 451.8K Spending & Discounts
  • 239.5K Work, Benefits & Business
  • 615.3K Mortgages, Homes & Bills
  • 175.1K Life & Family
  • 252.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.