Direct debit indemnity claim - is it the New PPI???

steve7777777

I have recently received a £450 refund via the bank (DD indemnity claim) from my pet insurance company as I found they had increase the monthly Direct Debit amount without notifying me first, for example

1st year it was the agreed £11.16 which I had Agreed
2nd Year this increased to £15 NOT AGREED
3rd Year this increased to £28 NOT AGREED

I spoke with the bank regarding the increases and advised them I do not agree to this however they initially advised it will be on a rolling contract which I am fine with but not the increase.

After I received the indemnity claim I decided to check all my DDs including car insurance and the same has happened. I knew the car insurance was active obviously in the 2nd year but was under the impression it was on the 1st years amount but it had increased by approx £30 per month.

MY QUESTIONS IS can I claim this 2nd year car insurance back similar to the pet insurance and other products that had been increased without my consent???

Thanks in advance for your comments.

Steve.

DevCoder

As long as they tell you the amount is changing (ie the beneficiary) then the amount can change

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/38/standing-orders-direct-debits-38.htm

http://www.bacs.co.uk/Bacs/Businesses/DirectDebit/Collecting/Pages/CustomersRights.aspx

roonaldo

Premiums do change, especially car insurance, you will get an annual renewal and with most insurers they will automatically renew if you dont cancel it.

The problem being if you keep doing these claims your policy will lapse due to non payment and you dont want to be driving about with no car insurance.

You also run the risk of your indemnity claim being reversed, if there is found to be no wrong doing they can ask for payments back.

I would suggest you go elsewhere for your pet or car insurance.

DD indemnity claims is nothing like PPI. PPI is only refundable if mis-sold. DD indemnity claims are not designed for people who dont read their renewal notices.

dunstonh

Insurance premiums are notified in renewal notices. So, you are notified.

Are you saying you never got your car insurance certificate?

Direct debit indemnity claim - is it the New PPI???

er, no. Not even close. You cannot be mis-sold a direct debit indemnity guarantee.

meer53

steve7777777 wrote: »

I have recently received a £450 refund via the bank (DD indemnity claim) from my pet insurance company as I found they had increase the monthly Direct Debit amount without notifying me first, for example

1st year it was the agreed £11.16 which I had Agreed
2nd Year this increased to £15 NOT AGREED
3rd Year this increased to £28 NOT AGREED

I spoke with the bank regarding the increases and advised them I do not agree to this however they initially advised it will be on a rolling contract which I am fine with but not the increase.

After I received the indemnity claim I decided to check all my DDs including car insurance and the same has happened. I knew the car insurance was active obviously in the 2nd year but was under the impression it was on the 1st years amount but it had increased by approx £30 per month.

MY QUESTIONS IS can I claim this 2nd year car insurance back similar to the pet insurance and other products that had been increased without my consent???

Thanks in advance for your comments.

Steve.

So why didn't you contact your insurer about the increase in the 2nd year ? Or don't you look at your bank statements ? It's not the banks fault, it's yours.

I'd love car insurance that never goes up !

Hazzanet

steve7777777 wrote: »

MY QUESTIONS IS can I claim this 2nd year car insurance back similar to the pet insurance and other products that had been increased without my consent???]

By all means you can make the claim, but don't be surprised when the debt collectors come knocking on your door.

You'll be contacted by the pet insurers soon asking for their money back, and chances are if you don't cough up, that'll be sent to the debt collectors fairly swiftly.

steve7777777

Thanks for the updates above but I think the point has been missed with regards to my questions or maybe I didn’t make it clear.

Let me focus on the car insurance part to make it easier.

Firstly I knew the car insurance had rolled over as this is what I agreed at the very start of the plan.

What I didn’t agree to was the increase in the amount of the premium. I do not remember receiving the increase letter as with work I am away a lot and move about. Also I am sure they do not send it recorded delivery do they? So easily could have been lost in the post or sent to an incorrect address… They cannot prove I have received it.

Going off the direct debit promise I do not feel I was notified because I would have simply switched and gone for a better quote… If they had to get my signature the first time around then they should require my signature for any increases!!

“If there are any changes to the amount, date or frequency of your Direct Debit (insert your organisation name)will notify you (insert number of) working days in advance of your account being debited or as otherwise agreed.”

Bottom line, it is my choice to review or not review my bank account as it is my bank account but it is not their choice to decide what to charge me then do it as there is a level of trust with setting up a DD and I feel that trust has been broken by the company.

With regards to the car insurance company chasing me if I claim, I have read that they have 14 days once the claim has been made to issue a counter claim, after 14 days they cannot chase me for payment…

Any feedback is appreciated especially on the 14 day chase period.

Thanks

Steve.

dunstonh

Firstly I knew the car insurance had rolled over as this is what I agreed at the very start of the plan.

What I didn’t agree to was the increase in the amount of the premium

You did agree to it. They issued the renewal and gave instructions on what would happen next. If you accepted the renewal premium and terms (which you say you did) then you accepted the premium.

I do not remember receiving the increase letter as with work I am away a lot and move about.

so, you are saying that you are driving around without an insurance certificate?

With regards to the car insurance company chasing me if I claim, I have read that they have 14 days once the claim has been made to issue a counter claim, after 14 days they cannot chase me for payment…

Yes they can. Monthly premium car insurance is collected under a credit agreement. They can activate failure to pay and hit your credit record. They can also void your policy and that will require you to declare a cancelled policy due to non-payment for the rest of your life and that will prevent you from getting cover with some providers or being penalised with an increased premium with others.

You are taking risks with your actions. Risks that could end up costing you a lot of money.

Hazzanet

steve7777777 wrote: »

With regards to the car insurance company chasing me if I claim, I have read that they have 14 days once the claim has been made to issue a counter claim, after 14 days they cannot chase me for payment…

Indeed, within the framework of the DD guarantee, however the debt still stands.

* If an error is made in the payment of your Direct Debit, by (insert your organisation name) or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.
- If you receive a refund you are not entitled to, you must pay it back when (insert your organisation name) asks you to

magpiecottage

steve7777777 wrote: »

I do not remember receiving the increase letter as with work I am away a lot and move about. Also I am sure they do not send it recorded delivery do they? So easily could have been lost in the post or sent to an incorrect address… They cannot prove I have received it.

If they can prove it was posted then you will be deemed to have received it two working days later if it was correctly addressed.

I do not feel I was notified

The letter they sent says you were.

If there are any changes to the amount, date or frequency of your Direct Debit (insert your organisation name)will notify you (insert number of) working days in advance of your account being debited or as otherwise agreed.

Which they did.

Bottom line, it is my choice to review or not review my bank account as it is my bank account but it is not their choice to decide what to charge me then do it as there is a level of trust with setting up a DD and I feel that trust has been broken by the company.

I do not see that the bank has done anything wrong.

Any feedback is appreciated especially on the 14 day chase period.

I agree with Hazzanet.

That does not stop the insurer pursuing you for the debt.

It also does not stop them trashing your credit record or cancelling your insurance.

That in turn means you could get fined for having no insurance on your car or having it crushed.

[Deleted User]

Always interesting to see the lengths some people will go to find a claim or complaint where none exists....