AA home insurance

kenlyn

Just wondered if anybody had same problems with returned direct debit charges from AA? In short, AA charge £12 for a returned direct debit. As my policy is split in 3 (contents, inside & outside) and therefore 3 payments via direct debit made each month I have been charged £36 by AA for my returned DD. This is on top of the amount charged by my bank for returned DDs. 1 part of ther policy is only for £3.36 so I have ended up paying £15.36 for it (bank not charging for ths one). It is contained in their small print (magnifying glass needed) but to be honest, I never read it and adviser did not point this out either. I queried this with them for April payment and received no reply to my letter.Today received a letter from debt collecting agency for the money. Appreciate I should have read small print but doesn't this seem heavy handed considering had policy with them for a few years and this is only time this has happed? I will have to pay them tomorrow but just wondered if anyone else been charged by acompany for returned direct debits - thought only the bank charged. Sorry to bore you with all this but so upset when that agency letter came. Thanks for letting me get it off my chest ! Regards

InsideInsurance

Do they collect 3 separate payments each month or just the one?

kenlyn

They collect 3 direct debits each month on same day.They saidi it couldn't be in one as there were 3 parts to the insurance cover. Thanks

InsideInsurance

The AA are brokers and so they may well be placing the insurance with different insurers but I am surprised they dont roll it up into a single payment.

That said they are however being consistent in terms of collecting 3 payments and if all three fail then charging three late payment fees. Wonder if their are sufficient failed payments to warrant the additional banking charges they'll be paying for tripling the number of payments they take.

kenlyn

Is it common practice for a company to charge for failed direct debits as i thought it was only the bank that charged their customers for returning these? Many thanks

Quentin

kenlyn wrote: »

Is it common practice for a company to charge for failed direct debits as i thought it was only the bank that charged their customers for returning these? Many thanks

Yes. The merchant gets all the hassle/admin to deal with when the customer defaults - why should everyone who ensures their dd won't default subsidise those who don't?

InsideInsurance

it is getting increasingly common.

Customers are so price sensitive and prices are so easy to compare that companies are looking to trim every penny they can from their up front prices and so need to look for secondary income streams be that admin fees on changes/ cancellations or failed payment charges etc

kenlyn

Thank you Quentin for info. I don't expect anyone to subsidise me and as this is the only time this has happened, I did not know who charged what etc which is why I asked for advice from the knowledgeable people on this site in the first place.

The_AA_Company_Representative

This certainly doesn't sound typical of our usual high standards. We are eager to look in to this for you. Please send your details, with Reference 9077 to [EMAIL="chat@theaa.com"]chat@theaa.com[/EMAIL] thank you

dacouch

The_AA_Company_Representative wrote: »

This certainly doesn't sound typical of our usual high standards. We are eager to look in to this for you. Please send your details, with Reference 9077 to [EMAIL="chat@theaa.com"]chat@theaa.com[/EMAIL] thank you

It would appear that the AA will (Possibly) waive these fees for people who complain on MSE, if you don't then you end up paying...

kenlyn

Thanks Dadouche for taking time to reply.

AA rep: thanks for the offer but I have already sent 3 emails of complaint and awaiting reply. Can't agree with statement that AA has high standards though. Had another letter today from Central Recoveries (owned by AA) saying I had not contact them and that collectors would be calling to house for the money (£69 owed). I rang them and they said mistake - this was after money paid last week so can't be that. Am going to report to as many organisations as I can as they are threatening, bullying and intimidating and my hubby not slept with worry. AA more concerned that I cancelled DD for breakdown than anything else which says lot for them. AA should stand for appalling and atrocious.