Owed money from Direct Line

kcmoon

Hi

I just found out today that I have been overpaying Direct Line more than double for car insurance since September last year. I called to query this with them.

They said it was because they had not received my no claims bonus confirmation letter. I got it out of the file and told them I had sent it, and that there was a date stamp of 15th August on it which must have been when they received it.

The lady checked with my previous insurer, confirmed the no claims bonus and said she would refund the money to me. Then she called again to say that they money would only be refunded in July when the policy finishes.

Do I have a case for going to the FSA or another ombudsman? I think it is unfair that we have to wait that long for our money back.

Any help greatly appreciated.

Thank you.

wealdroam

kcmoon wrote: »

Do I have a case for going to the FSA or another ombudsman? I think it is unfair that we have to wait that long for our money back.

You may well be right in that they should make the refund quicker, but do take into account that you have also made a mistake in failing to notice the overpayments.

But before you kick up a fuss, consider that you may well find that July will have been and gone before "the FSA or another ombudsman" have got anywhere near resolving the issue.

Frankly, I would be quite impressed that they had agreed the refund apparently so easily.

arcon5

Phone your bank up and ask them to refund you under the direct debit guarantee scheme

kcmoon

wealdroam wrote: »

You may well be right in that they should make the refund quicker, but do take into account that you have also made a mistake in failing to notice the overpayments.

But before you kick up a fuss, consider that you may well find that July will have been and gone before "the FSA or another ombudsman" have got anywhere near resolving the issue.

Frankly, I would be quite impressed that they had agreed the refund apparently so easily.

Hi,

On what grounds would they NOT agree refund the money so easily??

arcon5

kcmoon wrote: »

Hi,

On what grounds would they NOT agree refund the money so easily??

I think he's referring to the fact insurance companies are not very easy to deal with, let alone to get to issue refunds at the best of times. So them offering a refund without an argument is fortunate

kcmoon

oh right, yes that's true!

ThumbRemote

kcmoon wrote: »

The lady checked with my previous insurer, confirmed the no claims bonus and said she would refund the money to me. Then she called again to say that they money would only be refunded in July when the policy finishes.

Calculate the extra amount they have taken, then send them a letter insisting they refund it immediately. If they fail, letter before action then small claims court will get a far speedier resolution than any sort of ombudsman.

wealdroam wrote: »

You may well be right in that they should make the refund quicker, but do take into account that you have also made a mistake in failing to notice the overpayments.

The OPs actions are of no relevance to this. In any event, it's not that they've made a mistake. They simply haven't noticed someone elses.

arcon5

A letter before action or formal complain may yield quicker results. If not, waiting for the policy to lapse will likely be quicker than going through the courts.

arcon5

Can they not consider it pre-payment for future installments? Or maybe work out how much more you owe them, deduct how much they have overcharged you, then pay the difference and consider the payment side of things satisfied?

kcmoon

arcon5 wrote: »

Can they not consider it pre-payment for future installments? Or maybe work out how much more you owe them, deduct how much they have overcharged you, then pay the difference and consider the payment side of things satisfied?

The thing is I don't owe them any more than £70 for the next two months and they owe me £370. So they have said that I won't pay anything for the next two months and then when the policy finishes they will pay me back.

I just think that all that time they have had my money, earning interest on it, and now they want to make me wait longer for it still is very cheeky.

I will definitely write them a letter and hopefully that will kick them into action if they expect I will take it further.

Thanks for all the comments and suggestions. :T

arcon5

I'd also stop making further payments - they can't mark you as default when your account is so far in credit, surely?

Have you contacted the bank yet? Assuming it was paid via DD they should instantly refund the money.

Direct Debit Guarantee

• The Guarantee is offered by all banks and building societies that accept instruction to pay Direct Debits
• If there are any changes to the amount, date or frequency of your Direct Debit the organisation will notify you (normally 10 working days) in advance of your account being debited or as otherwise agreed. If you request the organisation to collect a payment, confirmation of the amount and date will be given to you at the time of the request
• If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.
  • If you receive a refund you are not entitled to, you must pay it back when the organisation asks you to
• You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify the organisation.