Complaint to Ombudsman re. Autorenewal = A Sharp Practice

dransfield

I just sent this complaint and wondered if anyone else shares my fury about this sharp practice:-

Dear Ombudsman,
In short:-
Last year I insured my car with Elephant.co.uk.
This year their renewal premium was approximately 30% higher, and so did not renew with them.
I used price comparison websites, and insured with Privilege Insurance for a reasonable price.

I happen to contact Elephant (for proof of NCB) and was alarmed to find that they had automatically renewed me! I then became exasperated as the Cust Serv Rep explained this was for my own good! This is simply “sharp practice”. I can think of no other single purchase where it would be considered acceptable to recharge the customer without their express permission. How about if I book some cinema tickets on a Friday? – Should the cinema, by default, book some more tickets for the following Friday? Or what about that Villa I stayed in last summer? - Should the owners charge my card for the coming summer just in case? …etc…

The legal requirement for a motor vehicle to have 3rd party cover for road use (which was one of the CSR’s justifications) is my responsibility, not that of any insurance company who I may have had cover with. Or are they going to pop around and get it MOTed for me as well?
If (hypothetically) this were a valid argument, then:-
• They would only need to put me on 3rd party cover, and
• they would need to confirm that my particulars had not changed, otherwise the insurance could be invalid anyway.

Happily, in my case, Elephant have, in their words: agreed to refund the premium and waive any cancellation charges, or in my words: agreed to return the money that they stole from my credit card.

However, I am moved to lodge a formal complaint against this practice within the industry.
Yours sincerely,
[Dransfield]

custardy

dransfield wrote: »

I just sent this complaint and wondered if anyone else shares my fury about this sharp practice:-

Dear Ombudsman,
In short:-
Last year I insured my car with Elephant.co.uk.
This year their renewal premium was approximately 30% higher, and so did not renew with them.
I used price comparison websites, and insured with Privilege Insurance for a reasonable price.

I happen to contact Elephant (for proof of NCB) and was alarmed to find that they had automatically renewed me! I then became exasperated as the Cust Serv Rep explained this was for my own good! This is simply “sharp practice”. I can think of no other single purchase where it would be considered acceptable to recharge the customer without their express permission. How about if I book some cinema tickets on a Friday? – Should the cinema, by default, book some more tickets for the following Friday? Or what about that Villa I stayed in last summer? - Should the owners charge my card for the coming summer just in case? …etc…

The legal requirement for a motor vehicle to have 3rd party cover for road use (which was one of the CSR’s justifications) is my responsibility, not that of any insurance company who I may have had cover with. Or are they going to pop around and get it MOTed for me as well?
If (hypothetically) this were a valid argument, then:-
• They would only need to put me on 3rd party cover, and
• they would need to confirm that my particulars had not changed, otherwise the insurance could be invalid anyway.

Happily, in my case, Elephant have, in their words: agreed to refund the premium and waive any cancellation charges, or in my words: agreed to return the money that they stole from my credit card.

However, I am moved to lodge a formal complaint against this practice within the industry.
Yours sincerely,
[Dransfield]

the part in red
so you read the renewal letter? the part that said you didnt have to do anything if you wanted to continue?

Bangton

Sorry OP but threads like this annoy me. Your going to make a complaint with the FOS when the insurer has sorted out the matter? Why?

The FOS will throw this out the moment they look at your renewal which WILL say you should contact Elephant if you DON'T wish to renew (or something similar).

In my opinion the auto renewal is very handy as it means I can renew year on year if I cannot find a cheaper quote..if I can then I call the insurer to stop the insurance and they do a deal anyway! (which I wouldn't have know about if I didn't have to call and cancel the auto renewal).

It's swings and roundabouts..it doesn't suit you, but it might suit plenty of other people...I am sorry to be harsh but I see no reason to go to the FOS...the FOS is there when the insurer cannot deal with the complaint OR deal with it to your satisfaction. How can you not be satisfied when you have had your money returned?

nobby_noo

dransfield wrote: »

I just sent this complaint and wondered if anyone else shares my fury about this sharp practice:-

Dear Ombudsman,
In short:-
Last year I insured my car with Elephant.co.uk.
This year their renewal premium was approximately 30% higher, and so did not renew with them.
I used price comparison websites, and insured with Privilege Insurance for a reasonable price.

I happen to contact Elephant (for proof of NCB) and was alarmed to find that they had automatically renewed me! I then became exasperated as the Cust Serv Rep explained this was for my own good! This is simply “sharp practice”. I can think of no other single purchase where it would be considered acceptable to recharge the customer without their express permission. How about if I book some cinema tickets on a Friday? – Should the cinema, by default, book some more tickets for the following Friday? Or what about that Villa I stayed in last summer? - Should the owners charge my card for the coming summer just in case? …etc…

The legal requirement for a motor vehicle to have 3rd party cover for road use (which was one of the CSR’s justifications) is my responsibility, not that of any insurance company who I may have had cover with. Or are they going to pop around and get it MOTed for me as well?
If (hypothetically) this were a valid argument, then:-
• They would only need to put me on 3rd party cover, and
• they would need to confirm that my particulars had not changed, otherwise the insurance could be invalid anyway.

Happily, in my case, Elephant have, in their words: agreed to refund the premium and waive any cancellation charges, or in my words: agreed to return the money that they stole from my credit card.

However, I am moved to lodge a formal complaint against this practice within the industry.
Yours sincerely,
[Dransfield][/QU

nobby_noo

Dialdirectandgetstung.com
I paid for my son's insurance last year with my debit card.
Dial Direct have used my card details to steal nearly £1000 from my bank account to renew my sons policy for this year.
I am not the policy holder.They steal your money and use every delaying tactic in the book to hang on to it for a few weeks,then charge you to give you your own money back.Which they shouldn't have had in the first place.
They must generate £1000's upon £1000's of pounds a week like this.
These people are thieves.
Why do we let them steal our money and get away with it?
Would all the thousands of people out there who have had money stolen from them by Dial Direct please email me your story. Contact [EMAIL="info@1st-alert.com"]info@1st-alert.com[/EMAIL]

dunstonh

Happily, in my case, Elephant have, in their words: agreed to refund the premium and waive any cancellation charges, or in my words: agreed to return the money that they stole from my credit card.

However, I am moved to lodge a formal complaint against this practice within the industry.

What you mean is that you are going to complain that the insurer did what they said they were going to do because you were too lazy or too stupid to read your post.

These people are thieves.
Why do we let them steal our money and get away with it?

The inability to read and act on instructions does not mean a company stole the money.

I despair at the level of eduction in this country at times.

custardy

nobby_noo wrote: »

Dialdirectandgetstung.com
I paid for my son's insurance last year with my debit card.
Dial Direct have used my card details to steal nearly £1000 from my bank account to renew my sons policy for this year.
I am not the policy holder.They steal your money and use every delaying tactic in the book to hang on to it for a few weeks,then charge you to give you your own money back.Which they shouldn't have had in the first place.
They must generate £1000's upon £1000's of pounds a week like this.
These people are thieves.
Why do we let them steal our money and get away with it?
Would all the thousands of people out there who have had money stolen from them by Dial Direct please email me your story. Contact [EMAIL="info@1st-alert.com"]info@1st-alert.com[/EMAIL]

so,you got no contact from them regarding the renewal..............................................

magpiecottage

dransfield wrote: »

Happily, in my case, Elephant have, in their words: agreed to refund the premium and waive any cancellation charges, or in my words: agreed to return the money that they stole from my credit card.

However, I am moved to lodge a formal complaint against this practice within the industry.

So you had a problem, the insurer sorted it but you want to complain anyway.

FOS is likely to dismiss the complaint without considering it because it is frivolous (i.e. silly) and vexatious (i.e. malicious).

That leaves the way open for Elephant to charge you for its time you are now wasting.

magpiecottage

nobby_noo wrote: »

Dialdirectandgetstung.com
I paid for my son's insurance last year with my debit card.
Dial Direct have used my card details to steal nearly £1000 from my bank account to renew my sons policy for this year.
I am not the policy holder.They steal your money and use every delaying tactic in the book to hang on to it for a few weeks,then charge you to give you your own money back.Which they shouldn't have had in the first place.
They must generate £1000's upon £1000's of pounds a week like this.
These people are thieves.
Why do we let them steal our money and get away with it?
Would all the thousands of people out there who have had money stolen from them by Dial Direct please email me your story. Contact [EMAIL="info@1st-alert.com"]info@1st-alert.com[/EMAIL]

If you did not authorise the payment tell your bank it is an unauthorised debit and you want it refunded in accordance with FSA rule BCOBS 5.1.11

How the insurer deals with your son over it is a matter between them.

DCFC79

Im pretty sure your told its an auto renew policy when you take it out or its in the T&C's.

mikey72

magpiecottage wrote: »

If you did not authorise the payment tell your bank it is an unauthorised debit and you want it refunded in accordance with FSA rule BCOBS 5.1.11

How the insurer deals with your son over it is a matter between them.

That's the bit that annoys me.
The way it's accepted it's ok to debit a third party, because at sometime in the past the insurer got hold of the card details.
It's not, and can be reclaimed as you say.

I agree the insurer and the insured will then have to sort it out between them.