Car Insurance PaymentsWarning

rich200k

I have fallen into an insurance company "trap" and wanted to inform people of the pitfalls to avoid it.

I took a policy out with Swinton/Its4me in feb, unfortunatley I lost my job and had to cancel the direct debits as I was unsure when/if funds would be available. I still kept up with payments via visa debit ontime and full payments.

I had a car bump and Swinton/Its4me refused to pay out as my bank details weren't on file. I challenged them and they promply cancelled my insurance. They then sent me a bill for £91.38 for the priveledge of cancelling my cover. Which I have flattly refused to pay!

I have started proceedings with the Finacial Services Authority regarding this matter. As it turns out my policy was VOID the minute i cancelled the direct debit and they should have informed me. Luckily for me I have a phone transcript of them saying it was void (thank you freedom of information act) which basically holds them accountable for all payments made on the card(which i'm hoping to get returned) and costs incurred in fixing my car.:j

Be be aware not to fall into this "trap" as I did

I hope this has been helpful

Cheers Rich

rich200k

Having checked the contract with a solicitor, it was found that the contact to be contradictory. In one section they say they only accept direct debits and another says they have flexible payment methods if direct debit is not suitable.

As such no breach of contract.

I'm not prepared to be "bullied" by a big company and if they won't pay out, I'm happy to accept either but my leagl advice is to request both.

just got to see what the fsa say.

rich200k

Just what i've been advised to do.

I did think it was unusual as the fsa, as far as i'm aware is being split up by the government.

I have to be honest I don't think I would have argued the situation for it not having legal advice, it has made a big difference to how I would have handled it.

The wording is on their statement of detail(terms of business) page 13 bottom paragragh.(apologies i don't have a link).

dacouch

It sounds like the solicitor is relying on the following...

http://www.its4me.co.uk/TermsConditions/
"payments by direct debit
Most annual policies can be paid for by Direct Debit via our own credit agreement. For full details of the terms and conditions and interest charges, please ask. Availability is subject to status. A deposit is required. Quotations given on request. If you choose to pay by Direct Debit, you will be provided with a Consumer Credit Agreement to sign and return to us. This agreement will set out your Direct Debit payments.

6 to 8 weeks before your renewal date, a further payment of the same amount is taken as a returnable deposit against next year's renewal. This money will be held by us on your behalf and used against your renewal premium. This payment will often be processed before you have confirmed that you wish to renew. Please do not treat our taking of this payment as renewal of your policy; it is simply a pre-renewal advance payment. If your policy is not renewed, this payment will be refunded to you.

As we operate our own credit agreement, policies we arrange cannot be paid for via an Insurer's Direct Debit scheme.

Where we hold credit or debit card details you have paid with, you irrevocably authorise us to charge to such card any sum due under this agreement which you fail to make on the due date. You will be notified in writing prior to any collection. We will not collect from this card should you notify us of any outstanding claim you have made against us.

other payment methods
Should you choose not to pay in full or by direct debit, we have a range of flexible payment options. For full details of the terms and conditions and interest charges, please ask. Availability is subject to status. A deposit may be required. Quotations given on request. Not available for policies incepted via our website."

I doubt it will work...

PNPSUKNET

did you obtain permission to record their calls? If not they can only be for your use and wont standup. Inregards to your sol I would get a new one, no company would be liable for both. YOU breached the contract, also did you arrange other cover when cancelled.

dunstonh

thank you freedom of information act

Freedom of information act doesnt apply to businesses.

In one section they say they only accept direct debits and another says they have flexible payment methods if direct debit is not suitable.

Does it say you can switch between the two mid term? Normally the choice is made at the start of the policy year as you have to choose the method. If you choose instalments, this is done under a credit agreement. This makes it difficult to switch methods mid term as you end up breaking the credit agreement and that can void the contract.

I did think it was unusual as the fsa, as far as i'm aware is being split up by the government.

Not for another two years. It doesnt matter though as the FSA have never reviewed consumer complaints and will not review consumer complaints in whatever format they are going forward. If you send it to the FSA they will forward it to Swinton to deal with.

iamana1ias

rich200k wrote: »

Having checked the contract with a solicitor, it was found that the contact to be contradictory. In one section they say they only accept direct debits and another says they have flexible payment methods if direct debit is not suitable.

As such no breach of contract.

I'm not prepared to be "bullied" by a big company and if they won't pay out, I'm happy to accept either but my leagl advice is to request both.

just got to see what the fsa say.

Did you speak to them at the time and ask to change the payment arrangements, or did you just take it upon yourself to change them?

rich200k

All I can do is follow the advice i've been given, I did inform swinton beforehand that I wished to cancel my direct debit and was advised that it was possible due to the circumstances.

Regarding the freedom of information act, it applies to ANY business or person taking ANY sort of data about you (including phone calls and even cctv). As such I requested a copy of the calls made to them, I have not recorded any calls.

I did have to arrange alternative cover when they cancelled it as they refused to reistate it, i'm not going to apologise for being insured.

Thanks for the info regarding the fsa, i'll pass it on and see what comes of it.

Don't take it as i'm out to get Swinton/Its4me, I'm not, I just want to inform people that they won't pay out whilst still accepting payments for a policy they knew was void. Thats it.

glider3560

rich200k wrote: »

Regarding the freedom of information act, it applies to ANY business or person taking ANY sort of data about you (including phone calls and even cctv). As such I requested a copy of the calls made to them, I have not recorded any calls.

No it doesn't. The Data Protection Act does give you these rights. The Freedom of Information Act allows you to request information about public bodies (i.e. organisations that have something to do with the government) and is completely the wrong act in these circumstances.

dacouch

I think either the solicitor is miss informing you or you're confusing your words.

An Insurance policy is not like a normal contract in that it is subject to the Road Traffic Act, if you take out cover and are supplied with a Certificate of Insurance which is a legal document declaring you are covered for claims by third parties. It can only be cancelled either by you by advising Swintons or the Insurers or by Swintons or the Insurers if they give you a certain amount of days notice in writing.

To be declared void the Insurers would need to discover information about you or the car that you had not declared and then investigate it before they declare it void. You or Swintons cannot just declare the contract void.

little_girl_lost

Hi Rich,

Sadly I used to work for Swinton in their Accidental Death Insurance Office.

It had only ever payed out on a policy once.

Theres always a loophole.

I terribly sorry for anyone that has the misfortune of dealing with them.
You would think the FSA would catch up with them, but their policies are worded in such a way no one has a leg to stand on.


I wish you luck with you claim for your payments back. And warn others even if other companies policies are more expensive its worth the extra for the peice of mind.