Back Dated Charge for Penalty Points - Help Please

TomSouthCoast

Hi, thanks for reading this!

My friend has recently recieved a letter from her previous insurers demanding £180 for a penalty point endorsement on her policy she informed them about last December. I understand that they could have added this charge to the policy at the time but I don't see how they can demand this money now?

Will she have to pay this amount or can she justify not paying, as they didnt inform her of the charge, when she wrote to advise them 11 months ago?

Quote

Why would your friend imagine that they don't have to pay?

How has this situation even materialised?

Are they still with the same insurer?

How much were they previously paying?

When is their renewal due?

What was the endorsement?

No offence, but this doesn't seem to make a lot of sense.

dunstonh

My friend has recently recieved a letter from her previous insurers demanding £180 for a penalty point endorsement on her policy she informed them about last December. I understand that they could have added this charge to the policy at the time but I don't see how they can demand this money now?

Did she actually inform them at the time of getting them or at renewal? It just seems a bit strange they are only asking for the money now.

Will she have to pay this amount or can she justify not paying, as they didnt inform her of the charge, when she wrote to advise them 11 months ago?

Did she ever get a follow up on the letter acknowleding receipt? Did the renewal notice she received show the points as declared (this is probably the important bit as it would indicate whether they got the letter or not)?

Something now has caused them to become aware of the points. What is it?

magpiecottage

dunstonh wrote: »

Did she actually inform them at the time of getting them or at renewal? It just seems a bit strange they are only asking for the money now.

Did she ever get a follow up on the letter acknowleding receipt? Did the renewal notice she received show the points as declared (this is probably the important bit as it would indicate whether they got the letter or not)?

Something now has caused them to become aware of the points. What is it?

As it is the previous insurer, the Data Protection Act would seem to prevent them finding out later - so the only logical reason would be that they have been going through their records and found it.

If so, then I think they would have a hard time persuading FOS that she should pay now. If she wrote back saying she was dissatisfied that they waited so long and consider it unfair and unreasonable that the insurer now demands the money after their contract has expired, I suspect they will simply waive it.

Loughton_Monkey

This doesn't add up, provided you mean December 2009 ("Last December").

Motor Insurance is usually an annual contract. For a new policy, or at renewal for an existing one, you must disclose all accidents and convictions at the time. After that, throughout the period of insurance, you do not have to tell the Insurer about convictions 'mid term' - only at the next renewal.

You refer to them as 'previous insurer'. Has she told her current insurer?

The only way I can make this out is if her 'notification' last December told them of a conviction that went back further in time, prior to when she renewed (or took out a new policy) with that Insurer.