Swinton Bikes Cancellation

matty4113

Hi all,
This one is a bit long winded so bear with me.

I took out bike insurance in january this year at a cost of £68 for the year. I then added breakdown at a cost of £50, I then opted for installments, that took the total to around £14 per month.

I cancelled the insurance in early March as I sold the bike. I was covered for approx 6 weeks. Swinton rang me and asked why I had cancelled the direct debit, I told them I had sent a letter...........they hadn't received it apparently!

They told me the cancellation fee would be £50 which I already knew, plus the breakdown fee which was paid upfront by Swinton, plus some other bits and pieces, total being £133. I told them I couldn't pay this in one go so they told me to ignore the letters for 14 days and it will get passed to LFS, their debt recovery company and for a fee of £25, they will set up a payment plan.

I was not happy with this so wrote a letter straight away stating I thought the amount was ridiculous and that I was not prepared to pay another £25 just for someone to set up installments. This was sent recorded delivery. Last week a letter dropped through the door, totally ignoring my letter and stating it has now been passed to LFS who will be intouch.

I am not trying to get out of paying what I owe but I need a little advice. I want to be prepared when I speak to LFS. Do I accept the £133 plus another £25 (more than my years insurance)?

And if so, how much do I pay each month, obviously they want as much as they can get but I am only comfortable really giving £20 per month. Can they hassle for more?

Your help is very much appreciated.

Matt

dunstonh

The problem is that you have used a credit agreement to pay monthly premiums. So, by stopping the payments you are in breach of the credit agreement and ultimately that is passed to a debt recovery company. The debt can then be shown in arrears or default on your credit file (and the damage that goes with that for the next 4-6 years).

I was not happy with this so wrote a letter straight away stating I thought the amount was ridiculous and that I was not prepared to pay another £25 just for someone to set up installments. This was sent recorded delivery. Last week a letter dropped through the door, totally ignoring my letter and stating it has now been passed to LFS who will be intouch.

You may not be happy with it but if you are in default and they don't want to consider options then there is little you can do if they decide to pass it to their bad debts collection firm.

Realistically, £25 is not an unreasonable fee for setting up a debt repayment plan. I think it would be hard to get that classed as unreasonable

matty4113

That's fine, just wanted clarification on that. But let's be honest.....£25 for the set up of a direct debit is crazy. So am I within my rights to state how much I can afford to pay monthly?

matty4113

dunstonh wrote: »

You may not be happy with it but if you are in default and they don't want to consider options then there is little you can do if they decide to pass it to their bad debts collection firm.
unreasonable

I am not in default, I cancelled the policy, something I am entitled to do. You think it is ok to charge me more for cancellation than a whole years cover?

dunstonh

I am not in default, I cancelled the policy, something I am entitled to do. You think it is ok to charge me more for cancellation than a whole years cover?

Monthly payments are under a credit agreement. You stopped the monthly payments. That puts you in arrears as you have defaulted on the monthly payment.

Whilst I can see your view on why you think its wrong to be charged more than the annual premium, I can see how it has happened. This is mainly due to you having bought non refundable ancillary products (like breakdown and your post suggest others). You have borrowed money to pay for these and the premium. So, whilst the premium will have some refund in it, the ancillary products will not. You add on the Swinton admin charge and then the fact you have had your debt referred to a collection firm then you can see how the situation has occured.

You would have been better letting the insurance continue without cancelling it.

£25 for the set up of a direct debit is crazy.

Its not for setting up a direct debit though. Its for the admin team from the bad debts firm now handling your overdue debt.

matty4113

dunstonh wrote: »

You would have been better letting the insurance continue without cancelling it.

Yes i realise that now, however wouldn't that be illegal? And risky? As someone else is now riding it.

What about stating how much I can afford per month?

Igol

No it wouldnt be illegal you'd just have a policy ticking over in your name.

I have a winter hack and summer bike so for 6 months of the year one of them is garaged and sorned with insurance running on them both.

As the OP said you've defaulted the fact you only have to pay £68 for the year then went for monthly payments and then didnt see an issue with 50 quid cancellation fee gets me tbh!??

matty4113

If I have to pay it then I have to pay it but can I state what I can/cant afford?
And I opted for installments because I added the breakdown and couldn't afford 1 payment of £110.
And you own them 2 bikes. If the new buyer had an accident and was not insured who would be liable? Me

losgiganteskid

As usual there will be winners and losers on the senario you mentioned. The winners will be Swintons as they will be able to receive what they believe to be due to them, incl comm and fees - the losers...........Swintons, as I guess you won't be insuring through them again and if you tell your friends and family your story - doubt whether any of them will either.

Igol

Unless you got any rider insurance,which for 68 quid isnt likely, then its you whos insured. The new keeper is responsible for their own insurance.