Mis sold car insurance ( Loan)

diggsy_2

Hiya,


I was wondering if any1 could help me with this ............

From 2009 / 2010 i had car insurance with a large insurance provider, in May 2010 i changed my car, i rang the company to tell them and my insurance went up considerably!I asked if i could cancel the policy as i eventually found it cheaper elsewhere, at this point I was told i would need to pay out the remainder of my loan. I was very confused and explained i didnt have loan (I never have) at which point they told me THEY had taken out a loan with a 3rd party company on my behalf and if i wanted to cancel i had to pay out the remainder. I explained i knew nothing about a loan at which point they again told me, they had taken the loan out on my behalf and if i wanted to cancel i had to pay it off, i explained that was ridiculous as i didnt want to pay for something i no longer wanted - they told me i had to. Eventually i paid it off at ridiculous prices but i was wondering wether anything coud be done now as ive heard it happens to quite a few people however rumours and gossip are not always true

thanks x

Malky

Why did you pay off a non-existant loan that you had no knowledge of? It dosen't make sense.
Go back to 09 when you bought insurance. How did you go about it?

Saints2011

I do not follow..

diggsy_2

I was told i had to or it would go down as bad credit, at one point i threatand to just stop paying it as i didnt understand how they were classing it as a loan, i was told it was underwritten by a 3rd party (which i understand alot of companies do) but not as a loan, they told me they had taken it out and paid the 3rd party company and now i owed them back because they paid it as one lump sum and i paid them back monthly

diggsy_2

It was originally online but i spoke to them numerous times over the phone and they NEVER mentioned loan or cannot cancel

Tixy

Often if you opt to pay your insurance over 12months what actually happens is that your insurance is paid by a loan company to the insurance company and you have a credit agreement with the loan company.
When this happens its (usually) very clearly written in the T&C of the insurance that you will be taking the loan out from x company and the credit agreement details, APR details etc.
You probably ticked a box to this effect when you took out the insurance.

sweep9

Did you pay for your insurance all at once at the start of the insurance or did you decide to pay monthly?...

diggsy_2

pay mothly and i appreciate what ur saying tixy but they never asked for signed paper work either

Tixy

Consumer credit agreements post 2007 can be done online with a tick of a box with no need for signed paperwork I believe.

diggsy_2

Thanks for your help Tixy, I just thought it was very unsual but then again it was a poor company with appauling customer service which i later learnt and now i am happy to say i am no longer with them and would never go with them again even if they were the cheapest!far too much hassle and mis sold products as far as im concerned

corbyboy

diggsy wrote: »

Thanks for your help Tixy, I just thought it was very unsual but then again it was a poor company with appauling customer service which i later learnt and now i am happy to say i am no longer with them and would never go with them again even if they were the cheapest!far too much hassle and mis sold products as far as im concerned

This is nothing to do with them being a poor company. Every single insurance company works this way. You aren't paying for your insurance monthly, you are repaying the loan monthly. The whole insurance premium was paid up front by the loan company and you are now paying them back.

Also, insurance companies don't let you cancel pro rata. So if you cancel 70% of the way through the year you won't be entitled to a 30% refund of your premium.