Forced to agree Credit Agreement to keep dog insured

socnsum1

My dog is insured with Debenhams on a life cover policy.
We had to claim last year after he was attacked.
We have now received a letter from Debenhams and then another letter from Premium Credit stating that they are taking over the admin of paying for my dog's insurance by direct debit and that I have to sign a credit agreement with this third party company Premium Credit.
I have never signed a credit agreement before and am reluctant to do so, but I am worried that I wouldn't be able to get low premiums if I switched.
Can Debenhams do this, and do I have any other options?
Am I worrying over nothing?

Thanks for any advice you lot can give.

Nick/

spacey2012

Nobody can force you to sign a contract against your will.

Write and politely inform them that the offer to enter contract with a third party is declined, that any punitive measures taken in revenge by the insurance company will be referenced to the FSA.

InsideInsurance

The policy is for a year and so its up to you if you want to pay in a lump sum once a year or pay in monthly installments. If you chose the second option then you have taken out credit before.

I would be surprised if you havent previously been asked to sign a credit agreement, most brokers/ insurers do, given you pay by installments but as credit isnt an insurers main income stream and for a variety of other reasons they are a little more lax about getting these things done.

By the sounds of it they have now decided to further outsource the premium financing to a dedicated finance company and inevitably they are going to be tighter at ensuring things are done properly when it comes to the loan you have been getting.

It is obviously up to you if you want to sign the credit agreement and continue to pay monthly on a 0% APR deal or if you want to switch to paying annually and thus not have any credit.

Its nothing to worry about and Debs are free to switch credit providers

InsideInsurance

spacey2012 wrote: »

Nobody can force you to sign a contract against your will.

Write and politely inform them that the offer to enter contract with a third party is declined, that any punitive measures taken in revenge by the insurance company will be referenced to the FSA.

Why the FSA, which doesnt exist anymore anyway? A consumer complaint would almost always go to the FOS not the FCA (the FSA replacement)

Quentin

spacey2012 wrote: »

.....Write and politely inform them that the offer to enter contract with a third party is declined, that any punitive measures taken in revenge by the insurance company will be referenced to the FSA.

If you follow this advice then the "punitive measures" you can expect (and the FCA can do nothing about, so don't waste time contacting them)is to either pay in full for the year or have your policy cancelled.

If you want to pay on the drip, then you are entering a credit agreement!

spacey2012

The names of what they call themselves this week is hard to keep track of FSA FOC FOS FCA.
So if in error I am not aware of what they call themselves I do apologise and welcome your correction.
The advice on contract offer and your right to reject it has not changed for 200 years.

spacey2012

Quentin wrote: »

If you follow this advice then the "punitive measures" you can expect (and the FCA can do nothing about, so don't waste time contacting them)is to either pay in full for the year or have your policy cancelled.

If you want to pay on the drip, then you are entering a credit agreement!

There must be a existing contract in place already, you of all people should know this ?

socnsum1

Thanks for all of the replies upto now.
I will try contacting Debenhams and see if I can maybe pay a year up front at a time. All the legalise language in this credit agreement is worrying me, and whilst I don't mind taking out a contract with Debenhams, some credit agency is another matter alltogether!

Quentin

spacey2012 wrote: »

The names of what they call themselves this week is hard to keep track of FSA FOC FOS FCA.
So if in error I am not aware of what they call themselves I do apologise and welcome your correction.
The advice on contract offer and your right to reject it has not changed for 200 years.

Irrespective of the "name change" from FSA to FCA, it is pointless you advising the OP to threaten her insurer that their actions will be passed to the FCA. (The FCA like the FSA previously will not deal with complaints from consumers).

The OP does have the right to reject the offered contract, however the consequences will be that payment on the drip won't be available!

McKneff

socnsum1 wrote: »

Thanks for all of the replies upto now.
I will try contacting Debenhams and see if I can maybe pay a year up front at a time. All the legalise language in this credit agreement is worrying me, and whilst I don't mind taking out a contract with Debenhams, some credit agency is another matter alltogether!

That would be easier for you all round.

Quentin

spacey2012 wrote: »

There must be a existing contract in place already, you of all people should know this ?

Yes, there may be a contract in place, but the other side want to make a change (presumably at renewal)!

If the OP is unhappy with the new one being offered they don't have to accept it, but cannot force the insurer to carry on loaning them money!