Premium Credit

daddycee

I had the day of work and thought I would sort out my bills etc and have tried to change the date some of payments as my pay date has changed and have found the following interesting facts with regards to Endsleigh Insurance (car).

I called them earlier and tried to get my payment date changed, however, (I didn't look at before) I have been told that because I pay monthly I pay through PREMIUM CREDIT and it turns out the I have to contact premium credit to have the date changed, anyway, what's happened is that PREMIUM CREDIT have paid my insurance in full and in the meantime I have taken out a loan agreement with PREMIUM CREDIT and have to deal with them (an american company by the way)

Is this allowed to happen? I mean, it seems very strange to take out car/house insurance etc with an insurance company but to have a third party to pay the whole year for you and then you have to pay the third party just seems, well, right off the ricter school in stupidy. Why can't the companies just take the payments directly?

Now some of you will say just make your payements etc etc but when you miss a payment you get charged £20 and if you have more than one agreement setup then well, add it up.

please no silly comments such as "you shouldn't have signed" as when they all come for renewal I will just pay everything in full.

cheers

rs65

daddycee wrote: »

Is this allowed to happen? I mean, it seems very strange to take out car/house insurance etc with an insurance company but to have a third party to pay the whole year for you and then you have to pay the third party just seems, well, right off the ricter school in stupidy. Why can't the companies just take the payments directly?

it's quite normal. the finance company pay the insurer upfront and the insurer avoids the credit risk.

kingstreet

Most insurers use premium funding companies. They want the money upfront, you want to pay in instalments.

The only way to avoid this is to use insurers who collect the money themselves, or pay the full annual premium.

dunstonh

Is this allowed to happen? I mean, it seems very strange to take out car/house insurance etc with an insurance company but to have a third party to pay the whole year for you and then you have to pay the third party just seems, well, right off the ricter school in stupidy. Why can't the companies just take the payments directly?

Car insurance and household insurance is an annual contract that used to be paid annually (and for most people, it still is). However, those wanting to pay monthly have done so, in most cases, under a credit agreement. It has been this way for decades.

However, more recently, firms have tightened up on the documentation and it is more obvious than it used to be.

You are borrowing money to pay a bill. So, that is why you see it being treated as a credit agreement.

ellie100

I have a related query. I recently took out a student contents insurance policy with Endsleigh which I pay monthly for and then received a letter from Premium credit ltd which consisted of a contract and said they provide me with a credit limit of £1500 if my policy was changed.
I rang Endsleigh as the letter was slightly confusing and there had been no clear advice that I would be dealing with Premium Credit instead of them. The guy on the phone said the letter was basically to bind me in to the Consumer Credit Act so that if they were to take too much money I would be able to retrieve it more easily. The £1500 credit limit was an amount they would lend me if I needed to change my policy for whatever reason. The guy also said that I did not have to sign this contract if I didn't want to. Having spoken with my parents they advised me not to sign it as the amount I'm paying for my insurance is not particularly large and if I have taken out a policy with Endsleigh i should, by law, be covered by the Consumer Credit Act anyway.

Has anyone been in this situation or can offer me any advice?
Thanks

forgotmyname

Either pay in full or take installments which would be a loan of some sort.

Get the loan yourself and pay the insurance.

Whats the difference? Not signing the contract but paying will be the same as you agreeing to it.

Unless you cancel it according to the terms..

dunstonh

I recently took out a student contents insurance policy with Endsleigh which I pay monthly for and then received a letter from Premium credit ltd which consisted of a contract and said they provide me with a credit limit of £1500 if my policy was changed.

The £1500 is the typical floor limit where a credit check is not made on you

I rang Endsleigh as the letter was slightly confusing and there had been no clear advice that I would be dealing with Premium Credit instead of them.

Its a minor issue that doesnt need full disclosure but would be covered in the T&C.

The guy on the phone said the letter was basically to bind me in to the Consumer Credit Act so that if they were to take too much money I would be able to retrieve it more easily.

Whilst the latter bit is a poor reason (as in explanation), the fact is that it is there to protect both parties.

The guy also said that I did not have to sign this contract if I didn't want to. Having spoken with my parents they advised me not to sign it as the amount I'm paying for my insurance is not particularly large and if I have taken out a policy with Endsleigh i should, by law, be covered by the Consumer Credit Act anyway.

Your parents are wrong. You dont have to sign as taking the offer of credit is deemed to be acceptance in itself. However, Premium credit remain the creditor. Not the insurer.

mikey72

dunstonh wrote: »

Your parents are wrong. You dont have to sign as taking the offer of credit is deemed to be acceptance in itself. However, Premium credit remain the creditor. Not the insurer.

If that's the case, and you don't need to sign it, definately don't then.