Unauthrorised debits...or not?

Tycho_2

I recently had a letter from Green Flag advising that my breakdown cover is due for renewal. At the bottom of the letter it commented that as I was already paying "by continuous payment", I did not have to do anything as they would renew the cover automatically using the existing card details they have.

I was surprised by that as I don't recal ever signing up to "continuous payment" and I never renew without shopping around.

Today, however, I have received a credit card statement showing that my car insurance company (Admiral) have claimed renewal payment, though I haven't authorised that. But reading their covering letter, I see that at the bottom it says that they will automatically take payment using the card details held on file - and they have.

Can anyone tell me, is this legal? By putting something in writing that says "if we don't hear from you, we will debit your card with your old details?" It's a new one on me, perhaps a sign of the times?

opinions4u

It's a sign of you clicking on <accept terms and conditions> but not reading and remembering them.

sharpy2010

Tycho wrote: »

Can anyone tell me, is this legal? By putting something in writing that says "if we don't hear from you, we will debit your card with your old details?" It's a new one on me, perhaps a sign of the times?

Yes its legal.

Personally I don't think it should be, but thats my own opinion and nothing else.

Its not a sign of the times. Insurance companies have been doing this for at least the last fifteen years, and most probably before that too.

Where have you been?!

Hooloovoo

Tycho wrote: »

Can anyone tell me, is this legal?

Not only is it legal, but automatic renewal of car insurance is a legal requirement in an attempt to reduce the number of people accidentally driving around uninsured because they forgot to renew.

davec1960

Hooloovoo wrote: »

Not only is it legal, but automatic renewal of car insurance is a legal requirement in an attempt to reduce the number of people accidentally driving around uninsured because they forgot to renew.

Is this really the case?

I understood that continuous car insurance was a legal requirement

http://www.mib.org.uk/Motor+Insurance+Database/en/Continuous+Insurance+Enforcement/default.htm

Why did Direct Line ask me if I wanted auto-renewal if it is legaly required?

McKneff

No it isnt a legal requirement, Ive, in the past been with the Coop for years and they have never done it. At the moment I'm with Aegis and they dont do it either.

Hooloovoo

davec1960 wrote: »

Why did Direct Line ask me if I wanted auto-renewal if it is legaly required?

Hmm. Maybe it's just "recommended best practise" then, rather than legally required. I understood it to be a requirement, but maybe not.

garynuman

As far as Green Flag goes, I think its all a con. They blag on, say their your best friend and that "you need to do nothing" - they then artificially inflate the price of your premium hoping you don't notice.

The AA is one of the worst. Unless you pay annually in full, you have to "opt-out" of the ongoing payment. Mine went from £160 to £213 per annum. I phoned them and got it down to £163!

No-one should be paying more than £170 per annum for *full* cover. How may people don't bother reading the renewal notice?! - It's scandalous.

Gaz