direct debit arrears fee

londoner20

Hi there. Just been charged £40 arrears fee for my house insurance monthly direct debit that was returned unpaid this month - I phoned the company up the same day and offered to make the payment on a debit card but they said they have already added £40 arrears fee.

Isn't £40 excessive?

Alex

dunstonh

Isn't £40 excessive?

In your opinion it may be but until someone gets a court to agree, then its not. The FOS have generally ruled that admin charges up to £50 are acceptable as long as they are in the published terms. It's probably cheaper than them cancelling it due to non-payment and then you having to declare a cancelled policy every time you apply for insurance in future.

botanical

londoner20 wrote: »

Hi there. Just been charged £40 arrears fee for my house insurance monthly direct debit that was returned unpaid this month - I phoned the company up the same day and offered to make the payment on a debit card but they said they have already added £40 arrears fee.

Isn't £40 excessive?

Alex

If the non-payment was a bank error, should they not refund you the arrears fee?

londoner20

hi guys, thanks for your replies. The direct debit error was mine, I just hoped as I could rectify it that same day with a credit card payment and intervene before any letter was sent out, i could avoid an arrears fee. But no, they said they had to send a letter out in a couple of days and for that they had to charge me £40. It's the system, apparently.....

MortimerMouse

google bbc.co.uk/news/10171047

Tedliplegress

hello. I am interested in your 3 clients, we would hold in direct admin, tell me how to make the transaction?. greetings