Policy early settlement charges, whos liable?

hungledink

A friend of mine recently took out some insurance with Octagon Group. As he didn't have fund in his account I allowed him to use my account to set up a direct debit and he would then repay me each month.

Since then, he has moved to Australia and cancelled his insurance policy. I am now receiving letters saying I am liable to pay the outstanding balance, which was left over from the early settlement.

Am I liable for these repayments or do they have to contact the policy holder for the repayments?

Thanks.

vaio

I'm pretty sure you aren't liable.

Tell your bank not to pay any more payments to the insurance company.

Make it clear (in writing?) that this instruction covers both direct debits and any continuous payment authority that might exist.

hungledink

The direct debits have stopped, its just the outstanding balance they are demanding now.

vaio

either just ignore them or, maybe better, write and tell them it wasn't your insurance, you have no liability for any outstanding sums and if they disagree ask them to specify how any such liability arose. (and maybe pass on the contact details of your friend)

dunstonh

The policyholder is liable. Not the account holder.

hungledink

Thanks for the info. I have confirmed with them that the account is not mine but I imagine I will still get letters from them in the future.

What is the best way to approach the situation if the letters continue? Previous letters have mentioned transfering the debt to a debt collection agency.

dunstonh

they will transfer for it to a collection agency and the debt will be registered against the policyholder. Not you.

mic200202

hungledink wrote: »

Thanks for the info. I have confirmed with them that the account is not mine but I imagine I will still get letters from them in the future.

What is the best way to approach the situation if the letters continue? Previous letters have mentioned transfering the debt to a debt collection agency.[/QUOTE

You may need to be a little careful here.How has the insurance company got your address details if you had nothing to do with the insurance? (except by acting as a payee).They should not have any of your details if all you did was give a sort code and a/c number.Are you sure you didn't sign a credit agreement or similar.On the face of it my colleague Dunstonh is correct the liability for the insurance is not yours but the liability to pay could be if you signed a credit agreement.You don't not want this passed to a debt collection agency.I would ask them to forward any paperwork relating to you to be sure.

dunstonh

Dunstonh is correct the liability for the insurance is not yours but the liability to pay could be if you signed a credit agreement.You don't not want this passed to a debt collection agency.I would ask them to forward any paperwork relating to you to be sure.

Good point. I forgot about those paying under a credit agreement (which many monthly ones are).