Please help! Being chased by C.A.R.S

sweet_caroline

Hello, I'd be grateful for any help on behalf of my brother. I've already sent the "prove it" letter and don't know what to do with the reply!

He took out van insurance with Budget Insurance last year, online. He didn't manage to get the copy of his no claims certificate to them on time. THEY cancelled the policy after 22 days, and charged him £45 cancellation fee, which he paid. He took out insurance with someone else. Then Budget demand a second fee of £75 which is also some sort of cancellation penalty?! Anyway, he refused to pay this and they appear to have handed the debt over to C.A.R.S.

With C.A.R.S chasing him via text messages, I wrote to them (C.A.R.S.), using advice I found here and the template prove it letter. They have written back (also returning the postal order!) saying "... unfortunately we are unable to bank this as Post Office Insurance does not have a Credit Agreement. You would have of either signed a contract with them not a credit agreement or set up your account online, via telephone, or through a rep. If you wish to dispute these matters further please contact them directly". They conclude by saying if they can be of further assistance to phone them.

They're still chasing him via his mobile phone though.

I'd be hugely grateful if someone would advise what he should do next. Contact Budget? Ignore CARS? Pay the £75 he doesn't know what for?.

Many thanks

Caroline

Tixy

It sounds like you sent a CCA request rather than the prove it letter. I would send the prove it letter - Letter when you know nothing about about the debt - AKA "Prove it" letter

Has he been through the insurance documents he had for the company to see what it details with regards to a cancellation fee?

To stop the communication to his phone he could also include in the prove it letter a paragraph from the telephone harrasment letter, asking for all communication to be in writing.Telephone Harassment Template Letter

annaify

CARS were chasing me when I ended my 3 month contract with my GYM. They said that it was supposed to be a 12 month contract and that I have not paid my 4th month fee.
I ignored them(CARS) and got in touch with my Gym headquarters and threatened them with legal action for harassing me/trying to get money off me because I had a signed contract saying that I was going to be with them with 3 months. They sent me an apology letter saying that there must have been a mistake that my 'so called debt' has been cleared and CARS will not contact me again. IMAGINE !! Had I been scared I would have had to pay £412 !!!

I am not sure about insurance though. I hope someone else can help you with that. Just though I'd let you know about my experience with CARS

spacey2012

If he feels he does not owe them why is he communicating with them.
He should Ignore until they apply for a court order.
Then he can have copies of everything they hold and defend the claim.
If they have no right to the money they wont try court or will lose.

He wont convince a debt company he does not owe them, no matter how hard he tries.
They dont work like that, to run a debt company you have to get your teeth in the rabbit and only let go when it rots away to nothing.

g_attrill

The £75 is possibly a pro-rata fee for the time on cover. (ie. 22/365ths of the annual premium), although that should have been charged at cancellation. Possibly it's a surcharge calculated based on him having zero NCD, which was only picked up after cancellation. Either way the fee should be explained to him if he asked.