Changing Direct Debit Date - Charge

guygreenwood

Just when you thought insurance companies couldn't get any lower, I just rang esure to change my direct debit date, by one day, to match my pay date.
They told me that there would be a £26 fee to do that.

I'm disgusted. Is there nothing they won't charge for now ???

keith1950

How much notice were you giving them ? It might have been too close to the payment date that it would cost them a fee ?

InsideInsurance

No, it'll be the more basic factor that 99% buys on headline price and will switch insurers to save less than £1. When you have a market that is so price sensitive you have to do everything you can to slash your upfront prices (often selling at a loss) and then recoup as much as you can by applying charges for any mid term amendments/ alterations etc.

The regulators/ ombudsman also support the idea that it is fairer for a pay on use model where only those wanting to make changes have to pay an admin fee than charging everyone an extra £20 a year irrespective of if they make changes or not.

dunstonh

They told me that there would be a £26 fee to do that.

I'm disgusted. Is there nothing they won't charge for now ???

Not sure what the problem is. You were charged an explicit administration charge because you created administration. If you are not going to pay it, then others would have to. Why should other policyholders pay more because of you?

Explicit charging is considered fairer by the regulator.

Buzby

Cancel the DD and pay by cheque. That way, you control when the payment leaves your account not the service supplier.

InsideInsurance

Though finding a company that still accepts cheques will be difficult and given the limited choice of providers you'd have would probably push your premiums up much more than the £26 it cost to change the DD date