Adrian Flux car insurance debt

eastonways

Hi guys,

I took out car insurance with Adrian Flux, it was around £344 per month. They advised me that I would need a guarantor, I said no problem. I then forgot about this and they terminated my policy with them, 1 month after I took it out, due to having no guarantor. I never provided them with any guarantor details and they are threatening to pass my details to a debt collections agency for the 11 unused months of my insurance.

Whilst I understand that you will say I should of approached this differently and either paid in full or had my parents take the insurance out for me, my circumstances at that time was completely different to now. I was a Manager at a well known UK company and lost my job as the company I worked for went into administration.

Legally, where do I stand? I am only 17 years of age and upon researching, legally a company cannot chase me for a debt that I had no guarantor for. Any advice will be appreciated.

k3lvc

You stand presumably without a car, with a cancelled insurance policy (and therefore loaded premiums for the foreseeable future) and presumably with a dirty great black mark on your credit history.

Hopefully someone else will add more legal details about the guarantor/17yo issue

antrobus

eastonways wrote: »

....Legally, where do I stand? I am only 17 years of age and upon researching, legally a company cannot chase me for a debt that I had no guarantor for. Any advice will be appreciated.

Minors are only liable for contracts for buying necessaries. Whether or not motor insurance qualifies as a 'necessary' I do not know. I suspect not, which is why Adrian Flux wanted a guarantor in the first place.

kingstreet

Why did the insurer/broker permit the inception of the policy without first establishing the correct contractual arrangements?

rudekid48

Did you make a claim? Not sure why they are asking you to pay the full 12 months otherwise??

Normally they would just be after you for the period you were on cover.

Something isn't right here - either you haven't told us everything or maybe you've misunderstood what they are asking for?

eastonways

Hi guys,

Thank you for your response.

I made no claim. As I said, I took the policy out with them, they asked for a guarantor, I never provided one yet they still insured me. I was insured for exactly 1 month. Here is the latest email I received from them:

Please see your cancellation breakdown below:
Insurance Premium (including our £30 policy arrangement fee) £2892.87
Direct Debit set up fee £25.00
Personal Accident Cover £ 15.00
Key Care £15.00
Total Premium £2947.87

Please note that the £30 policy arrangement fee, Direct Debit set up fee, Personal Accident Cover and Key Care are non-refundable after 14 days.

We can confirm that your policy was in force from the 17/12/2012 until the 18/01/2013 and was cancelled on a pro rata basis basis. This means that your insurer charged for the amount of days you had on cover. They were unable to offer a refund higher than the balance that was outstanding with Premium Credit as they usually cancel their polices based on the amount of months on cover and your case the refund would have only been 70% of your insurance premium. Refunded Insurance Premium £2505.69 Less our commission and £25 cancellation fee: £379.58 Total cancellation refund £2126.11

The settlement figure of your direct debit agreement with Premium Credit Limited was £2505.69, which, after the deduction of the above cancellation refund, has left an outstanding balance due of £379.58.

This payment is required before 07/02/2013 in order to prevent this being passed to our debt collection agency and incurring a further £25.00 fee.

Legally speaking on legal grounds, where do I stand when I had not provided them with a guarantor and I am only 17?

KeepFighting_2

eastonways wrote: »

Hi guys,

Thank you for your response.

I made no claim. As I said, I took the policy out with them, they asked for a guarantor, I never provided one yet they still insured me. I was insured for exactly 1 month. Here is the latest email I received from them:



Legally speaking on legal grounds, where do I stand when I had not provided them with a guarantor and I am only 17?

Apart from the fact that they should never have set up the Credit Agreement as you were a minor their email says you owe them £379 not £3700 which is about one months cover.

spacey2012

If you were 17, any contract you had with them is void.
They no chance of enforcing any credit agreement as you were not old enough to contract to one.
As they were the ones who cancelled the insurance and have already done the dorty, I would be inclined to tell them to go do one.

eastonways

Thanks guys!

I have been emailing them and they replied back stating that even though I am 17, I am still legally responsible for signing the credit agreement and the debt. I told them that I cannot be held to any type of credit agreement without a suitable guarantor.

They still insist that they will pass me to a collections agency and will incur further charges. The "further charges" are not even listed in my policy terms of service.

Any suggestions?

DCFC79

eastonways wrote: »

I was a Manager

eastonways wrote: »

I am only 17 years of age

Maybe its me but I don't buy the 2 statements above.

k3lvc

DCFC79 wrote: »

Maybe its me but I don't buy the 2 statements above.

Oooh you cynic - my radar was flahing away but I kept quiet