Performance Direct major upset, need help

Mandy_557

Hi ya, i insured my car with Performance Direct Car insurance and after six months i hit bad times and had to sell my car due to financial problems, i phoned the car insurance company and told them i wanted to cancel my insurance with them. They took all my details and that was all i heard. Then about four months later i have received a letter demanding payment for the rest of the years insurance that i havent paid for. Confused, i phoned them and it was stated that they were just the brokers and that they get their money back from the insurers but the insurers only have given them back some of the money and that i owe the rest. I have a bill of £178 which i have got to pay in seven days or they will pass it to a debt collector. Has anyone heard of this, i did expect to pay a cancellation fee but not the rest of the car insurance on a car i no longer own. I have had car insurance for the past twenty years and never come across this. Is there anything i can do to fight this??? Any advice will be gratefully received.

huckster

Send a recorded delivery letter to the broker, noting disputed cancellation charges- request for information.

Ask them for full details of the cancellation terms and conditions, plus a full breakdown of the cancellation charges calculation.

It is against both the rules of the FSA and OFT for an account to be passed to/handled by debt collectors while in dispute.

RichBen

Check the original terms and conditions of both the broker and the insurance policy. Legally, there is no requirement for an insurer to give any refund on cancellation, unless they state it in their policy. If you wern't told at the outset however, use the phrase "Treating Customers Fairly" and you may get some recourse.