Non return of credit agreement fine

angel3130

I took out home insurance with Budget Insurance last month and never got round to sending the Credit Agreement back within the 14 days stipulated. I have now been sent a letter saying they will add £15 to my monthly payment because of this.

How can they justify this costing them £15? Can they get away with this??

maninthestreet

An insurance company can't fine anyone - do the terms and conditions of the credit agreement state this charge at all??

bod1467

Usually an insurance company would demand the whole premium be paid up-front if a credit agreement hasn't been completed. So what is this £15 "fine"?

somethingcorporate

It's an incentive to get you to sign up to DD. It would probably be shown as a reduction of the normal cost. Since you have not signed up to DD you have not got this reduction.

arcon5

I agree with above.

It's unlikely to be a fine, just a difference in price. The other option I suppose would be to terminate your policy and charge an admin fee + fees for the time you was covered.

Why not phone them and ask if you can fax it over and stay on the current quote?

angel3130

I am paying direct debit, the charge is because they sent me my credit agreement to sign and because I've not sent it back within 14 days they are adding £15 to my next instalment. I'm sure it did have it in the terms and conditions but it seems to take the mick!