SKY insurance advice needed

lizzywig

My SIL got SKY TV in 2009, she got a call from a 3rd party company offering insurance for SKY (I'm not sure exactly what this was for) and she took it up. They took a monthly direct debit and in 2010 she decided to cancel, she wrote to them because she could not get through on the phone. They wrote back saying she could cancel and they would charge her £30 as it was before the year contract end (which wasn't actually the case).

She noticed recently that the money was still coming out of her account (how she didn't notice sooner I don't know) so she tried to get into contact with the company. They have gone into liquidation...yet the money is still coming out of the account.

The bank won't cancel the direct debit (apparently they don't do this). Any idea of how she can cancel?

penrhyn

If the bank wont cancel, I suspect that it is NOT a direct debit, rather a continuous authority on a credit card.
With a direct debit you are free to cancel at any time. With a continuous payment on a credit card it has to be cancelled by the payee.

marleyboy

Shame because its old and well known...........

http://www.actionfraud.police.uk/sky-insurance-scam-sep10

Sky users should be vigilant

Several residents have received the phone calls, and one was told that their current Sky insurance had expired when it still had several months to run. Trading Standards has said that they do not believe that these calls were made by Sky and is advising residents to take the following precautions:

• never give out bank or credit card details following a cold call
• check a caller’s identity using an independently obtained phone number
• hang up the phone if you have doubts about the caller’s identity.

So far, this scam has been reported by motorists in Cheshire and Staffordshire. As fraudsters move and change the geographical areas they operate in, all UK residents should also be vigilant about this type of fraud.

Anyone who has lost money to a scam like this should report it to Action Fraud.

Kurtis_Blue

penrhyn wrote: »

If the bank wont cancel, I suspect that it is NOT a direct debit, rather a continuous authority on a credit card.
With a direct debit you are free to cancel at any time. With a continuous payment on a credit card it has to be cancelled by the payee.

That's not correct it was on watchdog/radio 3 or some such last month, banks can and must cancel recurring payments at the demand of the card holder, and this very site was mentioned in giving out incorrect advice.

In fact looking now the advice on this site states:

http://www.moneysavingexpert.com/banking/recurring-payments

"You CAN'T cancel them. Ask the retailer to.
If it won't, you've a right to get your bank to stop it."

Mixed message??


FSA statement:

"However, you have the right to cancel them directly with your bank or card issuer by telling it that you have stopped permission for the payments. Your bank or card issuer must then stop them – it has no right to insist that you agree this first with the company taking the payments."

http://www.fsa.gov.uk/consumerinformation/product_news/banking/know_your_rights/payments

marleyboy

OP - You may find the following links useful...

http://www.fsa.gov.uk/consumerinformation/product_news/banking/know_your_rights/solving

http://www.moneyhelp.org.au/tools-tips/cancelling-a-direct-debit/

How to cancel a direct debit

Write to your financial institution (and send a copy of your letter to the business you pay using direct debit) and instruct them to cancel your direct debit authorisation forthwith or on a specific date. The bank cannot lawfully refuse your written request for cancellation.

To cancel a diect debit on a credit card account, you should first write to the organisation with whom you have established a direct debit, instructing them to cancel the arrangement. If the debits continue you can then show them the letter of cancellation to your financial institution and ask that the debit be reversed as it is unauthorised.

Sample MoneyHelp letter:Instruction to cancel a direct debit authorisation from savings or cheque account (MoneyHelp Letter 10)
Sample MoneyHelp letter:Instruction to trader to cancel a direct debit authorisation from credit account (MoneyHelp Letter 10B)

Keep copies of all correspondence and statements in relation to your request for direct debit cancellation.