1st Central Insurance Services/ Premium Credit Ltd

Mullins1927

Can somebody please advise I purchased my car insurance from 1st central through compare the market. I received everything via email including insurance certificate which I was happy with stress free service I thought. Today I have received a letter from Premium Credit services saying that I am paying my insurance through them and my payments are £40p/m but now I have checked the paperwork it states my first transaction is £400 my insurance is only £400per annum and I have already paid 120 im so confused it also states credit limit is 1500 are they offering me a loan or is my insurance really 1500 per annum because if this is the case surely they are misleading many customers through comparison sites

Quentin

Maybe your "first transaction" is the "loan" of the £400??

jcrymer

I took out a policy with them last year and paid monthly. As Quentin has said, it is probably the loan amount. They have paid the money to 1st Central and that is the transaction amount. My paper work is in front of me and says "Deposit (payable to your intermediary) £125.50, First Transaction Amount £376.49"
A paragraph below that "In respect of your first transaction, the amount payable is £429.20"

So, think is all as it should be in your case.

jcrymer

Mine also has credit limit of £1500, probably in case you need to change the policy, a more expensive vehicle risk, named drivers etc.

forgotmyname

Saves them doing another credit check or paperwork if for some reason your premiums are increased.

Just make sure you cancel properly, They have a knack of somehow managing to reinstate the direct debit even after cancelling the insurance and direct debit.

Kailasa700

Hi, I also recieved my paperwork from Premium Credit and was horrified until I read the small print! They approve a loan ammount of £1500 which would cover you for any increased premiums in the term if necessary. The example they give of total payable being £1700 is exactly that - an example *phew!*...! The letter says on it that they are required to show you the full cost if you were to borrow the full ammount. However, you're *not* borrowing the full ammount so don't panic, the letter will show the deposit already paid and what your monthly payments will be - these are the correct ones and relate to the money you owe them (that they have paid to the inurance company on your behalf). Hope that helps! x