Tesco car Insurance, are they in breach of Contract?

Markwalsall

Hello was wondering if anyone could help me please.
I Had a new car in October and phoned tesco up for a new quote.
They told me that they would get back to me.
They Phoned me up and told me it would cost me £131 pound a month and i agreed on that amout. a week later on the 10th November i Was sent my Car insurance documents and the fixed sum loan agreement.
After reading the letter that came with it it stated my new monthly payments would be £96 per month and would be taken from my bank on the 28th of november, i was over the moon with my new policy and just thought Tesco had amended it for me.

I signed the Fixed Loan A greement and sent it off ,at the bottom of the letter it did say('if you sign this you are entering into a legally binding contract,please only sign if you agree to be bound by it)

The other day i had a direct debit returned, when i checked it out it was tesco trying to take £131 from the account, i had only put enough into that account to cover the £96 as stated in the letter.
I will now be charged by my bank for a returned DD.

I phoned Tesco and told them this and they said sorry it was a mistake and you should be paying £131, i told him i had now signed the contract and he told me that they had recieved it. I asked him if now they were bound by it but he told me that that was not his department and he was not trained in these issues.

he said he waould send a new contract for me to sign.

I dont know weather they should Honnor it now!
Can anyone help.
Cheer in advance for any advise.

sally0101

I think they should honour it ... especially if you got it in writing. You did keep a copy of that didn't you? Tell them you are taking it further.

System

If the amount on the loan agreement letter had been more than the £131 you were expecting, you would have phoned to ask why - wouldnt you ?

So, just because they made an error and the letter was for an amount less then you were expecting, you are hoping to get away with paying less.

Double standards

gavinchappell

If I earned millions of pounds every year like Tesco do in profits rather than my distinctively average salary, then no, I'd have just paid the extra £40 to save the hassle...

Apples and oranges

Whatever the OP decides to do, I wouldn't drive. The missed payment may well have instantly invalidated your insurance and the last thing you want is to get snapped by ANPR or even worse, involved in an accident.

dunstonh

Tesco have made a mistake. However, it does look like one that you were trying to take advantage of. You knew it was £131. Yet didnt contact them when it said £96. When the correct amount was taken you then contacted them because it didnt suit you that the error no longer worked in your favour.

You should complain about the incorrect information and how it led to a bank charge. (although your bank should refund the bank charge as you have a direct debit notification letter saying you would be debited £96 and you were debited £131 - it broke d/d scheme rules and you should not be charged for that).

You would expect the outcome to be a small goodwill payment to ensure you are not worse off because of the bounced d/d charge and your premiums to be set at £131.