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Automatic Insurance renewal dispute

I have had contents insurance with IBUYECO since 2010 where I have been paying £11 a month until the end of June this year. They offered me a renewal of £35 per month which obviously I did not want to take as it is a 3 times increase!! I cancelled the direct debit.

I did not renew the insurance with them and have received a snotty letter demanding payment from the time I cancelled the DD plus a cancellation fee and threatening that this can affect my credit history.

I contacted them and when I stated that I did not authorise the renewal of my insurance with them they informed me that since I didn't contact them they renewed the insurance automatically.

What they say I have to pay is £95 this I do not want to pay plus I subsequently noticed they have taken a payment of £35 before I cancelled the DD, this I would like refunded.

Can anyone help as I feel they have trapped me into a contract that I did not want and have renewed a service and taken payments I did not specifically authorise.
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Comments

  • dacouch
    dacouch Posts: 21,637 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Cancelling the DD does not cance / lapsel a policy, you would need to advise them in writing or call them to instruct them you do not wish to renew.

    If you arranged alternative cover to run concurrently, send them a photocopy of the schedule and ask them to lapse the policy as it obviously was required and delete any charges.

    They may argue that the charges are still valid, if you wish to pursue it further, send them a letter by recorded delivery headed "Official Complaint". They will have to investigate the matter properly and report back to you.
  • mjm3346
    mjm3346 Posts: 47,055 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You need to check what you agreed to when you took out the policy, auto renewal is very common and just stopping the DD does not cancel the policy.
  • System
    System Posts: 178,168 Community Admin
    10,000 Posts Photogenic Name Dropper
    By not cancelling the contract you did renew the contract with them.

    I don't see how you can claim the £35 back. If you didn't tell them you wanted to cancel, and the direct debit was active at the time the money was due to be taken, that is clearly your fault.

    I also suspect you owe them the money as well.
  • Fosterdog
    Fosterdog Posts: 4,948 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    When you cancel a direct debit the company that it is payable to don't know that it's been cancelled, that is between you and your bank. The first they would know about it is when they attempt to take the payment due to them and it is blocked. All insurance companies work this way and you have to inform them if you want to cancel.

    By the time they would have tried to take the payment they would already have renewed your policy because you didn't tell them not to. You wouldn't like it if they cancelled your policy from their end without telling you and the first you knew about it was when you tried to make a claim and you find out you're no longer covered. It works both ways, they are not mind readers so without you telling them what you were doing they don't know.
  • DCFC79
    DCFC79 Posts: 40,610 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    yak111 wrote: »
    I have had contents insurance with IBUYECO since 2010 where I have been paying £11 a month until the end of June this year. They offered me a renewal of £35 per month which obviously I did not want to take as it is a 3 times increase!! I cancelled the direct debit.

    I did not renew the insurance with them and have received a snotty letter demanding payment from the time I cancelled the DD plus a cancellation fee and threatening that this can affect my credit history.

    I contacted them and when I stated that I did not authorise the renewal of my insurance with them they informed me that since I didn't contact them they renewed the insurance automatically.

    What they say I have to pay is £95 this I do not want to pay plus I subsequently noticed they have taken a payment of £35 before I cancelled the DD, this I would like refunded.

    Can anyone help as I feel they have trapped me into a contract that I did not want and have renewed a service and taken payments I did not specifically authorise.

    First flaw was thinking canceling the DD would cancel the policy and the second flaw was getting in a tizz when it was your fault.

    Sounds like you didnt read the terms you agreed toas auto renewal would be mentioned in there. All you do with auto renewal is once the policy is due for renewal you look round for a cheaper quote and once found 1 you either cancel your policy by calling up(ive never had a problem with calling but others suggest do it in writing) and either cancel the policy or you ask the insurer rep if they would match or better a cheaper quote.
  • First of all thank you for your replies...

    Apart from DCFC79. Another person who seems to gloat at other peoples over-sites... I came to this site for some advice not to be belittled...

    I am used to services where you have to "opt in" rather than "opt out". If this is my fault for not reading the T&C or there fault for making things a little muddy/changing them from the previous renewals. I am sure they didn't auto renew in 2011... I am sure when they sent out a reminder I had to contact them to continue my cover with them.

    Does anyone know if there is a chance of not paying having to pay them and if so how best to go about this...
  • verityboo
    verityboo Posts: 1,017 Forumite
    Having owned and insured a car for 20 years I have never come across a policy which did not auto renew and which didn't write after 11 months stating this?

    If you continue to ignore the situation and don't pay they will cancel the policy due to non payment, this will be recorded on the insurance database. You will need to declare this every time you apply for any insurance product that they refused to continue to insure you (meaning main stream insurers will be reluctant to insure you)

    As other have said your best way forward is showing you have another policy but I don't think you'll get the £35 back
  • DCFC79
    DCFC79 Posts: 40,610 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 27 September 2012 at 3:29PM
    yak111 wrote: »
    First of all thank you for your replies...

    Apart from DCFC79. Another person who seems to gloat at other peoples over-sites... I came to this site for some advice not to be belittled...

    I am used to services where you have to "opt in" rather than "opt out". If this is my fault for not reading the T&C or there fault for making things a little muddy/changing them from the previous renewals. I am sure they didn't auto renew in 2011... I am sure when they sent out a reminder I had to contact them to continue my cover with them.

    Does anyone know if there is a chance of not paying having to pay them and if so how best to go about this...

    You can try the suggestion posted by dacouch and see if they will waive it but dont get your hopes up.

    Ive always contacted the car insurer ( whether they had auto renewal in place or not ) to tell them im not interested in the continuation of the policy beyond its current term. Im sure 10 years ago it wasn't in place or not in use by a majority or insurers.
  • yak111 wrote: »
    First of all thank you for your replies...

    Apart from DCFC79. Another person who seems to gloat at other peoples over-sites... I came to this site for some advice not to be belittled...

    I am used to services where you have to "opt in" rather than "opt out". If this is my fault for not reading the T&C or there fault for making things a little muddy/changing them from the previous renewals. I am sure they didn't auto renew in 2011... I am sure when they sent out a reminder I had to contact them to continue my cover with them.

    Does anyone know if there is a chance of not paying having to pay them and if so how best to go about this...

    So you've not come on here asking for advice, you've come on here to get people to agree with you that you're right and shouldn't have to pay?

    You're on the wrong forum in that case. DCFC79 was spot on, and offered good advice too.

    You need to read the terms next time - I've done the same and learnt from it. :)
  • molerat
    molerat Posts: 32,845 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 27 September 2012 at 3:49PM
    Fosterdog wrote: »
    When you cancel a direct debit the company that it is payable to don't know that it's been cancelled, that is between you and your bank. The first they would know about it is when they attempt to take the payment due to them and it is blocked. All insurance companies work this way and you have to inform them if you want to cancel.

    By the time they would have tried to take the payment they would already have renewed your policy because you didn't tell them not to. You wouldn't like it if they cancelled your policy from their end without telling you and the first you knew about it was when you tried to make a claim and you find out you're no longer covered. It works both ways, they are not mind readers so without you telling them what you were doing they don't know.
    Oh yes they do, they get informed of the cancellation. I once cancelled a DD for car insurance and was going to phone them later and cancel renewal. I got a letter 3 days later stating that as I had cancelled the DD it was obvious that I did not wish to renew with them and the renewal was cancelled. It can be done but obviously some / most insurance companies are lazy and will always go for the money grabbing option. I would think that cancelling the DD in sufficient time was notice of intention to cancel the renewal.
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