Swinton Insurance - County Court Threat

mcmoore

Hi all, we could do with some advice here.

Last year our house and contents insurance was with Swinton. However, when we got the renewal price in this year, we called them about the price and said we would call them back if we wished to accept it.

We soon found that not only were they about three to four times more expensive than other quotes, their own quote on price comparison websites was about 1/3 of the price they quoted for a renewal. So, needless to say, we didn't call them back.

However, they are now saying we never called them and that subject to their 'standard practices' they automatically renewed the policy. They also say the only way they would waive the cancellation charge (for a policy we never accepted) is if we provide proof of another policy in place.

One final note is that the bank account they originally attempted to take payment from rejected because it is my personal one (the policy is for my mother, I paid her insurance last year) as I've basically got no money.

Ironically, they owed her £100 from the year before as a rebate for a cheaper policy but they stopped the cheque, so still owe her that £100. However, they have now added all kinds of debt collection fees etc onto the initial sum (of around £38) so it is now nearer to £200 and have just informed us they are taking her to county court.

We did send a letter explaining the situation fully and this county court action letter is their only response.

Any advice/help/words of encouragement would be most welcome right now because finances are bad enough at the moment, without some company making up debts we don't owe.

Quentin

If she had another policy then why haven't you passed the details on to them to accept their "waiver" offer?

Maybe you could get your mum to discuss this with the CAB and see what they advise?

Otherwise try and come to some arrangement with them before they take out the court summons as this will only add to the bill. If your mum has no money either, make sure they know this as it could make them see sense and not take cour action (which will be pointless if your mum cannot pay!)

mcmoore

Well a few issues regarding the other policy really.

1) Regardless of everything else, they don't have the right to see it, or the details anyway. To me it just sounds like they want to know who beat them and by how much.
2) She didn't take out the policy right away as she didn't have the money to at the time.
3) Even if she had the money at the time of the new policy being due, just because she didn't take a new one out shouldn't give any other company the automatic right to give her insurance instead, should it?

Quentin

mcmoore wrote: »

Well a few issues regarding the other policy really.

1) Regardless of everything else, they don't have the right to see it, or the details anyway. To me it just sounds like they want to know who beat them and by how much.
2) She didn't take out the policy right away as she didn't have the money to at the time.
3) Even if she had the money at the time of the new policy being due, just because she didn't take a new one out shouldn't give any other company the automatic right to give her insurance instead, should it?

1) They don't have the "right" to see it, but they offered to "waiver" any charges on sight of another policy being in place.

Without this, they have been supplying the cover (and clearly expect to be paid for doing so).

3) The principle and legality of auto- renewal isn't being disputed, just whether or not your mum instructed them she didn't want to renew. They did have the "right" to renew automatically, as your mum will have agreed to it when taking out the policy.

mcmoore

I don't see how they have the "right" to renew when they were clearly told "I'll call you back if I wish to accept this renewal price" over the telephone, when, naturally, she didn't call them back to accept.

Quentin

They had the right to renew set out in the original policy, and sent out renewal docs which will have set out what to do if you didn't want to renew.

The problem you have is that they will deny getting the call where your mum said she would call back if she wanted to renew. They will say she never actually cancelled the renewal.

mcmoore

Telling me nothing we don't know here (That they are denying she cancelled) and while I appreciate the effort, it's doing nothing more than reminding me of the situation, rather than helping with it.

Quentin

It won't go away if you ignore it!

Definitely consider this:

Maybe you could get your mum to discuss this with the CAB and see what they advise?

mikey72

Have a look at this thread as well.

https://forums.moneysavingexpert.com/discussion/3009092=

foggytown

mcmoore wrote: »

However, they are now saying we never called them and that subject to their 'standard practices' they automatically renewed the policy. They also say the only way they would waive the cancellation charge (for a policy we never accepted) is if we provide proof of another policy in place.

I have seen this mentioned several times but I don't understand the logic. Why should it make any difference to an insurer/broker trying to stick you with a cancellation charge whether you are insured or not? It's not like they have a duty to insure that you are insured. Is there some FOS aspect here?

I imagine that Swinton has reserved seating in a lot of county courts - on BOTH sides of the court.

dunstonh

However, they are now saying we never called them and that subject to their 'standard practices' they automatically renewed the policy. They also say the only way they would waive the cancellation charge (for a policy we never accepted) is if we provide proof of another policy in place.

Which is totally fair and acceptable.

1) Regardless of everything else, they don't have the right to see it, or the details anyway. To me it just sounds like they want to know who beat them and by how much.

They dont have a right to see it but then they dont have a requirement to refund either. it is normal where dual insurance occurs for the insurance company to seek proof you have dual insured before refunding.

2) She didn't take out the policy right away as she didn't have the money to at the time.

So, she wont get a full refund. It also makes her story less believable if a complaint is made.

3) Even if she had the money at the time of the new policy being due, just because she didn't take a new one out shouldn't give any other company the automatic right to give her insurance instead, should it?

They have every right as she agreed to automatic renewal. The renewal letter also states clearly (i.e. not in the small print) what to do next if you do or do not want to renew.

Telling me nothing we don't know here (That they are denying she cancelled) and while I appreciate the effort, it's doing nothing more than reminding me of the situation, rather than helping with it.

The problem is that there is no wrong doing from the insurer. At least not on paper. You are reliant on their goodwill.

The sensible option is to take them up on the dual insurance refund option and supply details of the other policy. Then in future read the letters and work on the basis that you tell the insurance company yes or no. There is no "maybe" option. If you say maybe then it will go by the policy default. That will either to be auto lapse or auto renew depending on policy in question.