In a bit of a pickle

halling

My apologies if this is in the wrong forum, but I would welcome some thoughts.

I am sure many people find money a bit tight at the moment, and I have been keeping my budget extremely tight for a while. The other day to my horror a few DD were returned.

Upon investigation, I discovered my old insurance company had taken the annual car insurance premium from my debit card. I rang the insurers and they admitted that it was an error and the money would be refunded, (odd it gets paid immediately but takes 3 - 10 days to return).

I then quizzed them about my expenses due to their error, I was told to submit a claim and this would be dealt with on a case by case basis. So I began putting the claim together, some costs are obvious, returned payment fees, exceeding overdraft, and interest. It then occurred to me that there would be an adverse rating on my credit score, and also my standing with the companies that didn't get paid due to this error.

Does anyone on the forum think I have missed anything from the financial side on this claim? Has anyone been in the same situation? Has anyone an idea of what to expect from my submission of the claim?

pmduk

There may be charges levied by the people whose DDs were returned

halling

Thanks pmduk, I found one additional chatge from the credit card company, and I have an idea I may get an additional interest charge for a balance transfer on that card.

I find it immensely annoying that through an error by someone else, it is going to cost me so much.

Even if I can get an addition of fault in writing from the insurance company, I am not sure how much weight that will carry with the credit agencies, as the payments have clearly been missed.

YorkshireBoy

halling wrote: »

I find it immensely annoying that through an error by someone else...

Why did they admit fault so readily? Was it because they didn't send you a "if you do nothing we will automatically renew your policy using your previously supplied card details" letter?

A tip for the future...when you use a card to pay for any insurance, make it abundantly clear that it's a one-off transaction and your card details are not to be stored for future use.

I actually go one step further and call them back a few weeks later to check my request has been actioned.

This is going to have a major impact on you, what with the loss of interest free deal and negative markers on both your credit card and bank account details with the CRAs, so you might want to get something in writing from the insurance company admitting their fault...so you can show it in any appeal you have to make if you're declined credit in the short to medium term.

matttye

halling wrote: »

Thanks pmduk, I found one additional chatge from the credit card company, and I have an idea I may get an additional interest charge for a balance transfer on that card.

I find it immensely annoying that through an error by someone else, it is going to cost me so much.

Even if I can get an addition of fault in writing from the insurance company, I am not sure how much weight that will carry with the credit agencies, as the payments have clearly been missed.

I'd like to think most companies would use their common sense and remove the adverse information from your report if you're able to prove that a payment was taken from your account in error.

If you can keep spare money in your account to cover incidents like this, that would be great, but not everyone has spare cash lying around, so I think it would be incredibly unfair if they refused to remove late payments etc.

halling

They admitted fault because the policy was transferred to the sister company and it was shown clearly on the computer system but not "slipped through the system apparently".

You are so right on the adverse credit report, I am going to have a chat with my bank. They should have returned the insurance payment request, as it took my account way over the overdraft limit.

I will post what they bank say.

matttye

halling wrote: »

They admitted fault because the policy was transferred to the sister company and it was shown clearly on the computer system but not "slipped through the system apparently".

You are so right on the adverse credit report, I am going to have a chat with my bank. They should have returned the insurance payment request, as it took my account way over the overdraft limit.

I will post what they bank say.

I doubt you'll get anywhere with your bank. You should dump your debit card and ask for a cash card / cash account if you don't want the option to spend more than you have in the account.

I would forget about trying to contact the bank and just focus on getting an admission of error in writing from the insurance company and asking the DD companies not to file any adverse information.

halling

matttye wrote: »

I doubt you'll get anywhere with your bank. You should dump your debit card and ask for a cash card / cash account if you don't want the option to spend more than you have in the account.

I would forget about trying to contact the bank and just focus on getting an admission of error in writing from the insurance company and asking the DD companies not to file any adverse information.

You are right I know the admission is key, and I will be pushing the insurance company for that.

On the other hand Barclays disputed transaction team, were helpful and offered assistance if required.

You are right about the debit card one use only situation, I thank you for that and won't be making the same mistake again.

Gromitt

halling wrote: »

I have absolutely no idea why this comment is of relevance

Seemingly a jealous teenager spamming the boards, just report them and they disappear.

Since the post has now been deleted, it may be wise to edit your post.

halling

Many thanks Gromitt

Bloomberg

halling wrote: »

My apologies if this is in the wrong forum, but I would welcome some thoughts.

I am sure many people find money a bit tight at the moment, and I have been keeping my budget extremely tight for a while. The other day to my horror a few DD were returned.

Upon investigation, I discovered my old insurance company had taken the annual car insurance premium from my debit card. I rang the insurers and they admitted that it was an error and the money would be refunded, (odd it gets paid immediately but takes 3 - 10 days to return).

I then quizzed them about my expenses due to their error, I was told to submit a claim and this would be dealt with on a case by case basis. So I began putting the claim together, some costs are obvious, returned payment fees, exceeding overdraft, and interest. It then occurred to me that there would be an adverse rating on my credit score, and also my standing with the companies that didn't get paid due to this error.

Does anyone on the forum think I have missed anything from the financial side on this claim? Has anyone been in the same situation? Has anyone an idea of what to expect from my submission of the claim?

In addition to getting a full refund you should try and get some extra money for the stress. Threaten to go to the ombudsman if need be. A few years back I bought two new Blackberry phones for my partner and I. It came to just over five hundred pounds which I paid for with a credit card. In error O2 also put the amount on my next bill, I didn't notice on the bill itself. I only realised when my dedicated bills account was wiped out.



My bank charged me for going overdrawn, O2 refunded me the full amount plus the bank charge and gave me two months free line rental which was well over £100. As I never go overdrawn the bank refunded the charge which I pocketed. The bottom line is that if you mess up, big companies are quick to hammer you. Let them have a taste of their own medicine.