Aviva requesting lump sum!

KPnut84

Hi, I had a policy with Aviva last year (2011-12), after forgetting to send them my proof of my no claims discount they proceeded to take out £700 from my account with no prior notice. After a complaint and proof of no claims sent, they refunded the £700 back into my account. It appears a week later they refunded the amount again without my knowledge (utilities account). This was over 10 months ago. I recieved a phonecall 3 days ago to advise I owe money to them and I must pay it back in full by the end of the month. After acknowledging that I owe them the money due to their mistake, I offered to pay back the amount in installments of £50 a month, which they point blank refused and asked for the full amount. Can they take the full amount? Or is what I am suggesting reasonable? Where do I stand legally? :wall:
Thanks

Quentin

Legally you owe the money, and they can ask for it in full.

But if you cannot pay it they can't get blood from a stone, so see what they will accept on the drip. (If you can pay it, then be prepared for them to pursue you)

FlameCloud

As its a utilities account, presumably you pay regular payments into the account? In which case the lump sum should still be there to pay off the amount in one go?

KPnut84

hi Flamecloud, you would think so, but unfortunatey due to a calculation error, we have been putting less in the account than we should have been. So the £700 has just been fritted away bit by bit each month. Wasn't until end of Sept that we noticed a problem and have changed our standing orders. We wish we could pay it off in one, but we just dont have it, and Aviva are being quite unhelpful with the situation. We thought paying off in installments wouldn't be a problem, but seems that it is. We feel very annoyed that we didnt notice the double refund at the time, but whats done is done, just need to find a solution

KPnut84

Quentin wrote: »

Legally you owe the money, and they can ask for it in full.

But if you cannot pay it they can't get blood from a stone, so see what they will accept on the drip. (If you can pay it, then be prepared for them to pursue you)

We offered £50 a month, as thats what we can afford, but they didn't even want to discuss it, they said lump sum at the end of the month required! They just kept repeating themselves, we even spoke to a manager who told us the same thing. We told them we don't have it so theres no way us paying it in full by the end of the month, but they didnt seem to care much. We do feel foolish for not realising it was there, but at the same time we have acknowledged their mistake and are willing to pay it back, but we can't all at once like they want. Its all a worry that if we cant they will just take it and cause us to be very overdrawn, or even worse Baliffs

TSx

KPnut84 wrote: »

We offered £50 a month, as thats what we can afford, but they didn't even want to discuss it, they said lump sum at the end of the month required! They just kept repeating themselves, we even spoke to a manager who told us the same thing. We told them we don't have it so theres no way us paying it in full by the end of the month, but they didnt seem to care much. We do feel foolish for not realising it was there, but at the same time we have acknowledged their mistake and are willing to pay it back, but we can't all at once like they want. Its all a worry that if we cant they will just take it and cause us to be very overdrawn, or even worse Baliffs

Honestly, don't worry too much - bailiffs are very, very unlikely and would only follow long drawn-out court proceedings which are very unlikely.

Send them a letter offering £50 a month and explaining you acknowledge the debt but aren't able to pay it in one go. Wait and see what they say (those dealing with written correspondence often have better knowledge than those dealing on the phone for some odd reason).

magpiecottage

TSx wrote: »

Send them a letter offering £50 a month and explaining you acknowledge the debt but aren't able to pay it in one go.

That sounds very reasonable. However, in your letter you should say you are "dissatisfied" with their refusal to accept that offer when you called them on (specify the date).

The reason for using the word "dissatisfied" is that it causes the matter to constitute a complaint and they have to deal with it in a particular way. If they do not come up with a satisfactory response within 8 weeks you can take them to the Financial Ombudsman Service.

I doubt very much it will get that far, though.

Keep a copy of that letter and make sure you get, and hang on to, proof of posting (free from the Post Office). No need for recorded delivery as some suggest. Post it first class today and with the proof it will be deemed to have arrived on Friday.

KPnut84

Thank you for your advice
I had a letter come through this morning from Aviva, advising of the lump sum owed, asking us to call and pay by card of the full amount. Its also says 'If we do not receive payment by 13 October 2012 then we shall have no option other then to cancel your policy'! I havent got a policy with them anymore as switched to another company at the end of september, so can't really understand why the are advising they will cancel the policy, when I dont have one with them anymore!!
Also, it is now the 10th, to pay by the 13th doesn't exactly give alot of time.
When we last spoke to them over the phone we asked to speak to a manager to make a complaint, he basically just said we have to pay the amount in full and that there is no 'pay monthly' option. Not very helpful. :mad:

Quentin

If you search for them (here and on the net) you'll see that the standard of "service" you are getting from aviva is not unusual.

The silver lining is you are no longer with them!! (Assuming you haven't been caught out by an autorenewal!!)

Reply to their letter as previously suggested, explaining you cannot pay them in full and suggest a scheme to pay them off, then take it from their reply.

If you have any "old" direct debit arrangements contact your bank now to cancel them. At least that will mean they cannot make you overdrawn as you originally feared.