Direct Line charging for Direct Debits?

2fortea

Just had my renewal quote for Property Insurance renewal from Direct Line who tell me that if I want to continue to pay by installments, I will need to pay a service charge of 15,50%. Is this a new trend, where only those who can pay the full amount will incur no charges?

adamc260

Pretty much every company charges an APR to pay monthly ... It's nothing new

McKneff

Your not paying it because its a direct debit, youre paying for the credit because you are in fact borrowing over the year.
Its pretty standard really, youve been lucky to not having it to pay up to now.

2sides2everystory

Pretty much every company charges an APR to pay monthly ... It's nothing new

Except when it happens to joe public who has been bombarded with various marketing messages from hoards of other major competitors who say things like "no additional charge to pay monthly" and "Pay Monthly get three months free" or "Pay Monthly get two months free".

You are the customer 2fortea, so if you have been surprised or wrongfooted it is not your fault and you can rightly blame the shifting sands of a market designed to do exactly that (surprise or wrongfoot you). Might be time to shop around.

mikey72

Interestingly, although Direct Line want to call it a service charge, to avoid having to tell you an apr, which they are required to by law, is it indeed credit you are "borrowing for the year".
If it's a "service charge", not credit, as Direct LIne seem to think, does that mean it's not a loan taken at the start of the year, so there is no legal obligation to pay it back??

boots_babe

It has always been the case that insurers charge extra for paying in instalments. As effectively they are providing you with a loan.

DCFC79

Nothing new with that OP, been around for years,