Will my credit be effected HELP PLEASE!

Balding

I'm a 21 year old student and I want to apply for a student account, I don't have much credit to my name apart from a next directory credit thing which has recently increased (which must be a good thing right?). Apart from that no phone bills or credit cards etc, only a current account. A few months ago I bought pet insurance after one month I paid the initial double payment, I was then told by a family member my pet is already covered so I cancelled the direct debit. I kept meaning to actually phone the insurance company and tell them i no longer need their services but I never got round to it. Roll on a few weeks later I got a letter saying something like they have been informed my direct debit has stopped and to continue coverage I need to pay the fee, of which I didn't. Again I kept meaning to phone them to tell them to cancel the policy but forgot anyway since then I haven't heard anything which probably means my policy has been cancelled. The worry I have is that because I didn't officially cancel the policy, that I merely cancelled my direct debit and as a result my pet stop being covered is that it will have had a negative effect on my credit score. Is this true, will it effect my credit rating, what little of it I have, or will it have no effect.

Curr946

unlikely, but they could sell on any money you own. As most have a cancellation charge.

CLAPTON

read your contract with the insurance company and see whether you have a monthly renewable contract or a yearly contract.

if you have a yearly contract then you will owe them for the year.

in due course check you credit records with the three main agencies and see whether there is any mention of the situation.

Balding

CLAPTON wrote: »

read your contract with the insurance company and see whether you have a monthly renewable contract or a yearly contract.

if you have a yearly contract then you will owe them for the year.

in due course check you credit records with the three main agencies and see whether there is any mention of the situation.

But I never actually used their services. I just paid them two months worth of insurance then stopped paying. Essentially they took they took £16 off of me for with nothing in return.

Balding

Curr946 wrote: »

unlikely, but they could sell on any money you own. As most have a cancellation charge.

But why would I owe them I never used the insurance, I just paid them two months worth of cover then stopped paying and my pet stopped being covered.

Curr946

Balding wrote: »

But why would I owe them I never used the insurance, I just paid them two months worth of cover then stopped paying and my pet stopped being covered.

as you agreed to a contact. That would be like not paying car insurance because you hadn't had an accident. Your pet was still insured

Balding

Curr946 wrote: »

as you agreed to a contact. That would be like not paying car insurance because you hadn't had an accident. Your pet was still insured

So will it have an impact on my credit rating since I didn't formally cancel?

Buzby

You're missing the salient info required. Did you give permission for your financial dealings to be disclosed to any third party DCA? If yes, then there's a viable risk. If not, then no.

What you've not taken into account, is that insurance is a complex business - moreso when you don't pay up front. Many firms are not licenced credit brokers, but use a third party firm. They pay the full amount to the insurer for the policy and you pay the fees to the lender. On the odd occasion the lender may be able to pull the plug, but it is easier for them to simply pursue you, whilst the policy rolls on for the annual fee agreed - you cannot assume at if you stop paying, the policy ends (if only everything was that simple!)

I'd pay £2 for your credit file, and see what lies therein.

Balding

Buzby wrote: »

You're missing the salient info required. Did you give permission for your financial dealings to be disclosed to any third party DCA? If yes, then there's a viable risk. If not, then no.

What you've not taken into account, is that insurance is a complex business - moreso when you don't pay up front. Many firms are not licenced credit brokers, but use a third party firm. They pay the full amount to the insurer for the policy and you pay the fees to the lender. On the odd occasion the lender may be able to pull the plug, but it is easier for them to simply pursue you, whilst the policy rolls on for the annual fee agreed - you cannot assume at if you stop paying, the policy ends (if only everything was that simple!)

I'd pay £2 for your credit file, and see what lies therein.

As far as I know, no. It was just a case of signing up online and getting my pet covered. From what I can tell to cancel the policy I can just phone them and have it cancelled at any time, providing I have never made a claim, it also says any payments made are non refundable but there's nothing I can do about that really.

CLAPTON

Balding wrote: »

But I never actually used their services. I just paid them two months worth of insurance then stopped paying. Essentially they took they took £16 off of me for with nothing in return.

I've had car insurance for 20 years and I haven't used their services but I still have to pay.

What does your contract say?

Check your credit files.

Take control of the situation.

demontfort

What is your pet anyway? Is it something exotic? I'm intrigued