Lv= won't offer me direct debit option

Andy_hull

Tried today to get car insurance from LV= but told they cannot offer me a direct debit option only payment in full (£268). When I asked why they just said that they run a credit check and that I didn't meet the required criteria!! Asked them what it is they said they didn't know???
I was then suggested that I obtain a copy of my credit report from experian to find out the problem.
I then went off and got my experian credit report which came back as excellent nothing that would go against me (credit score of 999).

I rang LV= back but then told again nothing they could do as they don't know why I was refused credit. :mad:

Going to write a complaint to the boss of LV= but won't help me get a good deal on my car insurance !!!! as I need to renew by Monday!!!

Anyone else had similar problems?

dunstonh

Asked them what it is they said they didn't know???

That is the correct response to give. Staff are given a reason but not the data behind the reason.

I have seen people with very good credit records fail abysmally on checks. Sometimes the data isn't consistent somewhere and its that which causes a fail. In cases I have experienced, i have gone to Experian stating the problem. They then come back that they cant find anything wrong and when they re-input the data it seems to go through fine.

Going to write a complaint to the boss of LV=

I would be more interested in finding out what data is causing a problem. If you have accessed your report you should see an enquiry on there from LV. If you don't then perhaps you need to check with the agency they use.

There is no requirement for LV to offer you terms they do not want to. If you complain and they still refuse then it is not a complaint the FOS can look at as its a commercial decision. Hence why I think you should focus on the cause.

vusys1

dunstonh wrote: »

I would be more interested in finding out what data is causing a problem. If you have accessed your report you should see an enquiry on there from LV. If you don't then perhaps you need to check with the agency they use.

They also run checks at RBS but advise that the search will not show on your credit report.

Just an aside, RBS got pulled up for "offering instalments" as it was deemed to be encouraging,adertising, the customer to enter into a credit agreement. Now this is the best bit, call scripts have been changed so that they have to ask the customer how they want to pay, if they reply monthly instalments, then the computer says "no" (after running its check), they have to apologise and say "sorry no can do, lump sum please". Customer complains,we back down and they offer instalments. Its all a game

magpiecottage

dunstonh wrote: »

There is no requirement for LV to offer you terms they do not want to. If you complain and they still refuse then it is not a complaint the FOS can look at as its a commercial decision. Hence why I think you should focus on the cause.

That is correct although under the Data Protection Act, you can insist that the decision is taken by a human rather than a computer. That could (at least in theory) give rise to a complaint FOS could consider.

foggytown

There is a slightly disquieting connection between the OP's situation and one I was in when I renewed my car policy with LV. I was told that if I wanted to pay by DD then I wouldn't be able to remove the auto-renewal feature from the policy. Nobody at LV ould eplain why that should be or how one is linked to the other. So I just paid in full. Fortunately my premiums are low enough that I can do that. With some it may not be the case.

Quentin

Although they insisted on the auto renewal clause remaining, you could have still ended the policy and avoided renewing.

ie. They wouldn't be able to force you to renew with them.

LMCD

opinions4u wrote: »

Pay in full. Stick £25 a month in to a savings account for next year. Earn a bit of interest instead of paying a bit of interest.

No company is obliged to give you credit. Borrowing to pay car insurance premiums that are less for a year than many pay for a month seems silly to me.

It's not technically borrowing as it would be on a pro rata basis - as long as the debit was paid for that month cover would be provided!!

plus who has got money just to hand over like that?! everyone has different financial circumstance hence the reason for this type of forum...


OP I had this problem when I went to renew this year and a company I used to work for had the best price but they said it was due to my postcode - So I can only think that past experiences with people on credit around here aren't fab?! I don't know though as I think its a bit of unfair discrimination as its a persons responsibility to be insured and thought that if they were not insured the cover would cease therefore not their problem..

but found a decent enough quote that was affordable for me to pay monthly from hastings direct through a comparison site - and I checked both of them.

LV=_company_representative

We're sorry to hear about the problems you've been experiencing. Perhaps you could email your contact details to [EMAIL="lvcares@lv.com"]lvcares@lv.com[/EMAIL] and we will look into the matter for you.

Regards

Nick Joy, LV= eCommerce Team.

opinions4u

LMCD wrote: »

It's not technically borrowing as it would be on a pro rata basis - as long as the debit was paid for that month cover would be provided!!

If it's not borrowing, why do companies have to provide an APR for the cost of credit on your monthly premiums?

plus who has got money just to hand over like that?! everyone has different financial circumstance hence the reason for this type of forum...

That's why I suggested saving up for next year. You give yourself more choice and a lower price if you can pay in full.

The sort of money saving tip this forum encourages?

LMCD

opinions4u wrote: »

If it's not borrowing, why do companies have to provide an APR for the cost of credit on your monthly premiums?

That's why I suggested saving up for next year. You give yourself more choice and a lower price if you can pay in full.

The sort of money saving tip this forum encourages?

pernickity but yeah there is a surcharge.. I wouldn't outright call it borrowing though... will leave it at that though.

yes I acknowledge your second point to save - thats a great tip for this forum!!

but I am thinking in the shoes of those and myself - I pay my monthly direct debit and other expenses etc - it is not black and white to be able to put £25 in an account, but for the OP it may well be.

adamc260

Andy_hull wrote: »

Going to write a complaint to the boss of LV= but won't help me get a good deal on my car insurance !!!! as I need to renew by Monday!!!

Anyone else had similar problems?

Insurance companies dont HAVE to give you the option to pay on direct debit... its just something that they do (to make money mostly).