Admiral + Premium Credit....Scam?!

102378612

Hi,
I just got a letter this morning from Premium Credit, saying that Admiral had set up a credit agreement with them on my behalf to pay my contents insurance for the year.

I never agreed to any credit agreement, yet they say they may take out the first payment from my account prior to me returning the signed credit agreement!

I have several issues here;

1. Admiral haven't contacted me telling me what my new premium is for the forthcoming year.

2. I never requested a credit agreement (especially not charging 26.8%) to pay my contents insurance and have been given no other payment options.

3. The credit agreement seems to have been applied for on my behalf ALREADY.

4. They're going to debit money from my account prior to me even signing any agreement.

Surely this can't be right? Has anybody else woken up to one of these letters? Where do I stand on refusing to take part in this agreement and leaving Admiral completely?

dunstonh

I never agreed to any credit agreement, yet they say they may take out the first payment from my account prior to me returning the signed credit agreement!

That is quite normal with most regular premium car insurance policies and has been for the last 30 years. It's just become a bit more formal in recent years due to some segments of society looking for loopholes to get out of paying money they owe.

1. Admiral haven't contacted me telling me what my new premium is for the forthcoming year.

Ask them then.

2. I never requested a credit agreement (especially not charging 26.8%) to pay my contents insurance and have been given no other payment options.

If you have been paying monthly then you may well have been paying that sort of APR for years.

3. The credit agreement seems to have been applied for on my behalf ALREADY.

That is correct. The insurers have a floor limit which allows them to offer it without the need to credit score or apply for credit. It wouldn't work if they couldnt.

4. They're going to debit money from my account prior to me even signing any agreement.

They dont need you to sign anything. You paying it is sufficient authorisation.

Surely this can't be right? Has anybody else woken up to one of these letters? Where do I stand on refusing to take part in this agreement and leaving Admiral completely?

Its right, its normal. If you dont like it then dont pay monthly and pay annually instead.

102378612

dunstonh,

Thanks for your reply,

Just to clarify a couple of things, I have been paying direct debits directly to Admiral in the past, and have not been paying APR before.

My issue is with the lack of any consultation, I haven't been given another payment option, essentially I don't want to pay through a credit agreement and will happily pay in a lump sum.

Where do I stand on extricating myself from this credit agreement and avoiding this APR?

Thanks

dunstonh

Just to clarify a couple of things, I have been paying direct debits directly to Admiral in the past, and have not been paying APR before.

Has the annual cost of the monthly premium being higher than annual premium paid in one go? (most insurers are). I wouldnt use Admiral nowadays personally but I did in my younger days for car insurance and they charged more for monthly payments then.

I just did a quick google search and found this thread from 2006 which also says they are paying more for monthly, albeit car insurance again: https://forums.moneysavingexpert.com/discussion/205235

My issue is with the lack of any consultation

They dont need to consult with you. If they already had an increased cost for monthly then they are just formalising it with current CCA requirements (just as other insurers have had to). If they didnt charge more for monthly previously and are now doing so then its a commercial decision that they are allowed to make.

Where do I stand on extricating myself from this credit agreement and avoiding this APR?

At renewal you pay annually instead. As simple as that.

GlynD

I'm paying to Premium Credit for car insurance at the moment.