Owe insurers cancellation charges on credit but credit agreement not signed?

echo_and_narcissus

We have had a motor insurance policy with Adrian Flux which auto-renewed in the middle of August for which a direct debit was taken.

We have unfortunately had to scrap our vehicle and so have just called the insurers to cancel.

We are informed we owe a certain amount on the credit agreement. We are just out of the 14 days cancellation period but have NOT signed the new credit agreement yet.

I'm not sure where we stand with this one... Are we obligated to pay hundreds of pounds outstanding if we haven't signed a credit agreement even if the policy auto-renewed and an initial payment has been taken via DD?

Any help welcomed, good or bad news, thanks!

InsideInsurance

The credit agreement is irrelevant, the fact they offer you credit to spread the payment over months is just a convenience factor for you, you cant then use it as a method of getting out of your contract of insurance with them.

You agreed to a contract that contained an auto renewal clause. You were warned that it was about to renew and you had to inform them if you didnt want them to, you were told of your cancellation rights and the costs involved. You chose to allow them to renew it and then chose to cancel it after the cooling off period and thus as long as they are only applying the costs as outlined in their documents then yes you have to pay it.

Pay what you owe rather than trying to find loopholes to escape your responsibilities

dunstonh

Whether you sign the agreement or not does not change they fact that you owe money. The credit agreement is just to allow them to continue monthly payments.

echo_and_narcissus

InsideInsurance wrote: »

The credit agreement is irrelevant, the fact they offer you credit to spread the payment over months is just a convenience factor for you, you cant then use it as a method of getting out of your contract of insurance with them.

You agreed to a contract that contained an auto renewal clause. You were warned that it was about to renew and you had to inform them if you didnt want them to, you were told of your cancellation rights and the costs involved. You chose to allow them to renew it and then chose to cancel it after the cooling off period and thus as long as they are only applying the costs as outlined in their documents then yes you have to pay it.

Pay what you owe rather than trying to find loopholes to escape your responsibilities

My you're a charmer aren't you? I'll just go and sit in the corner with my dunce's cap on I assume you speak to people IRL in that tone as well?

It wasn't an issue when the cover renewed. It was an issue after the cooling off period. Ergo my question. No need for the attitude. I'm sure anyone would find out if there was a way to not hand over the cash if they didn't have to and they weren't sure.

As you were!

Quentin

InsideInsurance wrote: »

......Pay what you owe rather than trying to find loopholes to escape your responsibilities

Unnecessary.

Without loopholes to exploit there would be no mse.

The op is quite entitled to seek advice here over this issue without getting a holier than thou sermon for daring to ask.

InsideInsurance

echo_and_narcissus wrote: »

I assume you speak to people IRL in that tone as well?

Depends on the person and what they're asking :rotfl: