Dial Direct Auto Renewal

How_many_cowboys

I have also had a problem with these, just did a quick search and a few others have popped up, basically end of the year for the insurance so I phoned around for a cheaper quote and got a better price so I admit I didn't phone them but I cancelled my direct debit payment hoping that's a good enough clue, 6 weeks later I get a letter saying I was still insured and they want £160.90 premium due and £38 cancellation fee. Did phone up CAB for advice today and they said check your terms and conditions on renewal but I was working so had to wait til I get back but Dial Direct say on their T+C that the auto renewal needs to be opted out so now I'm stuck, any advice?? Because its a final demand bailiffs will be used if need be but CAB said don't pay anything because you're claiming libel so hopefully will be going down to CAB with paperwork on Thursday to look for away out, just time is short.

mikey72

Ask the FOS for advice, they may or may not decide to rule on auto renewal in these circumstances, and what is a reasonable price to cancel if they do deem it a fair t&c, as no doubt the cancellation charge may not be reasonable.

InsideInsurance

How_many_cowboys wrote: »

I didn't phone them but I cancelled my direct debit payment hoping that's a good enough clue

It was, hence the cancellation fee and the limited premium to be paid until they got the clue.

Cancelling a direct debit/ payment is never an appropriate way of cancelling a service. Whilst what you get out of insurance may not be as tangible as other services they are still providing risk transfer even if you dont make a claim.

You can phone them, say it was an honest mistake and provide evidence that you had insurance elsewhere and ultimately threaten to go to the FoS. Ultimately you may have to chalk it up to a lesson that to cancel a service you have to cancel the service rather than allowing them to continue to provide the service then just refuse to pay the payment when they come asking for it.

How_many_cowboys

InsideInsurance wrote: »

You can phone them, say it was an honest mistake and provide evidence that you had insurance elsewhere and ultimately threaten to go to the FoS. Ultimately you may have to chalk it up to a lesson that to cancel a service you have to cancel the service rather than allowing them to continue to provide the service then just refuse to pay the payment when they come asking for it.

I have written a letter to the FoS and yes I had other insurance. Its ok saying phone them up to cancel but when you're on hold for 20+ minutes just to do then maybe thats the whole idea so you give up and they can blag you.
Quick search eariler on google with 'dial direct review' seems they do it alot.

ihateyes

How_many_cowboys wrote: »

I have written a letter to the FoS and yes I had other insurance. Its ok saying phone them up to cancel but when you're on hold for 20+ minutes just to do then maybe thats the whole idea so you give up and they can blag you.
Quick search eariler on google with 'dial direct review' seems they do it alot.

I would be surprised if FOS helps you in the situation. If their terms and conditions state your insurance will renew unless you contact them directly, then they have done nothing wrong... ALL insurance companies do this.

Unfortunatley you have th insuranace with Dial Direct, not the bank... so cancellin your ddeb does net mean you want to cancel, you could simply be changing banks. The insurance company is not to know this unless you communicate with them.

Ive been in your position before, and frankly i dont know what your complaint is about, except your ignorance to the terms and conditions they supplied you with.

mikey72

ihateyes wrote: »

I would be surprised if FOS helps you in the situation. If their terms and conditions state your insurance will renew unless you contact them directly, then they have done nothing wrong... ALL insurance companies do this.

Unfortunatley you have th insuranace with Dial Direct, not the bank... so cancellin your ddeb does net mean you want to cancel, you could simply be changing banks. The insurance company is not to know this unless you communicate with them.

Ive been in your position before, and frankly i dont know what your complaint is about, except your ignorance to the terms and conditions they supplied you with.

As with everything, just because it's in the t&c's doesn't make it fair or enforceable, that's why we have a legal system, and legislation and bodies like the FOS to protect consumers.

ihateyes

mikey72 wrote: »

As with everything, just because it's in the t&c's doesn't make it fair or enforceable, that's why we have a legal system, and legislation and bodies like the FOS to protect consumers.

True.... but the fact remains OP didnt cancel with the company who provide his insurance.


I did see an unfair renewal, whereby a customer got his renewal from Swinton, and the letter stated THEY WOULD CALL TO CONFIRM RENEWAL....

The policy holder got quotes, waited for call, no call recieved, policy had renewed called swinton to be told he is tied in....

Thats Unfair T&C's.........

dunstonh

I cancelled my direct debit payment hoping that's a good enough clue

reading your renewal letter that tells you what you need to do if you want to cancel wouldnt have been a better option.

legally, cancelling the payment method does not cancel the contract.

As with everything, just because it's in the t&c's doesn't make it fair or enforceable, that's why we have a legal system, and legislation and bodies like the FOS to protect consumers.

And just because we have a legal system and the FOS does not mean T&Cs are not legally binding.

The problem we have is that the OP made an error by making an incorrect assumption. That incorrect assumption has led to a cost. However, no rule has been broken by the firm (that we know of).

Ignoring the fact the FOS will not even look at the complaint at this stage, if they were to after the complaints process had been followed, they would look for rule breaches or unfair terms. We have no known published examples at this time on how the FOS rules on auto-renewal. The fact there is no examples and the firms are still doing it after all these years suggests that the FOS are not taking a hard line against the firms. Or it may be that the volume of complaints is so low in that area that there has been no example published yet.

It is fair to say that a court would rule against the OP as its their error. You are basically relying on the FOS feeling sorry for you or finding a bit of wording they dont like. i.e. getting lucky.

ihateyes

dunstonh wrote: »

reading your renewal letter that tells you what you need to do if you want to cancel wouldnt have been a better option.

legally, cancelling the payment method does not cancel the contract.



And just because we have a legal system and the FOS does not mean T&Cs are not legally binding.

The problem we have is that the OP made an error by making an incorrect assumption. That incorrect assumption has led to a cost. However, no rule has been broken by the firm (that we know of).

Ignoring the fact the FOS will not even look at the complaint at this stage, if they were to after the complaints process had been followed, they would look for rule breaches or unfair terms. We have no known published examples at this time on how the FOS rules on auto-renewal. The fact there is no examples and the firms are still doing it after all these years suggests that the FOS are not taking a hard line against the firms. Or it may be that the volume of complaints is so low in that area that there has been no example published yet.

It is fair to say that a court would rule against the OP as its their error. You are basically relying on the FOS feeling sorry for you or finding a bit of wording they dont like. i.e. getting lucky.

Well Said:beer:

How_many_cowboys

I'm sure someone has phoned up to cancel before and they never ran it through the computer by error or on purpose. So the same procedure happens, bills get sent out and then where do we stand? Do you now have to record all phone conversions to cover our !!!!!!?

MarkyMarkD

If FOS had an overwhelming belief that auto-renewal was wrong, they would have published a finding to that effect. And they haven't.

Far more people benefit from auto-renewal - by avoiding being prosecuted for driving without insurance - than suffer by it.

All insurers send out renewal quotes, and if they are going to auto-renew (and this is only if it was part of the original terms of your original insurance) they tell you, and tell you how to cancel.

As Dunstonh says, you have been on risk and if you had had an accident, you might have claimed. Having alternative insurance isn't, per se, a reason for them to refund you in full.