Insurance recorded on credit file?

matttye

A_Flock_Of_Sheep wrote: »

So are you in some kind of contract then whereby I'd you wish to cancel you are still liable for the remaining year? We have cancelled insurance but pay up front at the start but have always got a proportional refund for the remaining time not used.

If you are in some kind of "contract" similar to a mobile phone then yes one could argue the insurance firm could abuse customers by reporting payments to third party credit reference companies. If there is no financial contracts then in my view they have no right to do so.

I just did this, after about four or five monthly payments I paid off the remainder of the year and saved £50

A_Flock_Of_Sheep

matttye wrote: »

I just did this, after about four or five monthly payments I paid off the remainder of the year and saved £50

Yes but my concern is potentially insurance firms reporting payment data to CRAs when in reality your insurance isn't a regulated finance agreement or there is not contractural liability for the future payments.

My concern is how many companies seem to be jumping on the CRA reporting bandwagon. Having been victim of a false default from an unregulated credit reporting company (not a loan or credit card) I can only see the potential for errors and ruination of credit scores unjustly increasing.

I sincerely hope that false bad data reported to CRAs becomes the new PPI compensation culture and companies are sued right left and centre.

matttye

A_Flock_Of_Sheep wrote: »

Yes but my concern is potentially insurance firms reporting payment data to CRAs when in reality your insurance isn't a regulated finance agreement or there is not contractural liability for the future payments.

My concern is how many companies seem to be jumping on the CRA reporting bandwagon. Having been victim of a false default from an unregulated credit reporting company (not a loan or credit card) I can only see the potential for errors and ruination of credit scores unjustly increasing.

I sincerely hope that false bad data reported to CRAs becomes the new PPI compensation culture and companies are sued right left and centre.

Agreed. I think there should be reasonable time limits for removing bad data too.

What the CRA's need to understand (Equifax mainly as they're slow as molasses) is that some incorrect information in a credit report can make people put their lives on hold until resolved, especially when they're going to be applying for a mortgage.

UsetheFORCE

A_Flock_Of_Sheep wrote: »

So are you in some kind of contract then whereby I'd you wish to cancel you are still liable for the remaining year? We have cancelled insurance but pay up front at the start but have always got a proportional refund for the remaining time not used.

If you are in some kind of "contract" similar to a mobile phone then yes one could argue the insurance firm could abuse customers by reporting payments to third party credit reference companies. If there is no financial contracts then in my view they have no right to do so.

If I want to cancel my insurance, I get charged £25 cancellation and that's it. They will record the loan as paid up, even if I wanted to cancel a month into the year.

A_Flock_Of_Sheep

UsetheFORCE wrote: »

If I want to cancel my insurance, I get charged £25 cancellation and that's it. They will record the loan as paid up, even if I wanted to cancel a month into the year.

And the £25 cancellation fee covers what exactly? I notice insurance firms don't have a £25 joining fee.

I know the £25 probably covers the cost of reporting the account as closed to the CRA. So CRA's really do have a vital role in putting up costs.

UsetheFORCE

I had to pay £25 at the beginning of the year as the first policy was cancelled..they took it off the amount due for this year though.

I really don't know what it is for, don't think there is much I can do about it.

I now have 2 loans showing as active...one with no balance and the other with the outstanding amount for this year.

mayluio145

Yes, it would recorded in your credit file.