Bogus electronic goods insurance… advice needed please.

Sterling_Groovy

Earlier in the year my parents discovered an apparent error on a bank statement, an outgoing DDM, let’s say for £70.00. On closer inspection this turned out to be, let’s say the eight payment annually they had made, and a statement history from the bank confirmed this. My parents had no idea who the company where and protested ever giving any kind of authorisation for such a payment. The bank told mum and dad who the company were and promptly refunded them the previous three, or so, years payments through Direct Debit Indemnity Claim, DDIC. The bank said they would start an investigation. In the meantime mum and dad began to receive phone calls at home from a company claiming to supply them with, let’s say TV insurance. Mum tried to explain that she had never taken out any such insurance, but they where very persistent and started to threaten legal action, that’s when they turned to me. I gave them a phone script to handle the calls and wrote to the company requesting they cease contact, legal action and harassment. I invited the company to prove its “contract” and hence the validity of its claim to the premiums being collected each year. I insisted they present either a signature or a voice recorded confirmation of acceptance; proof of contract. Four times I have requested this in writing and they have not supplied it. In the week that the bank refunded all but one of the previous premiums the company has begun again threatening legal action and the referral of “the debt” to a collections agency with “fees and charges” incurred. There is a lot more detail to this story, but I have some questions to pose.

Wouldn’t a collections agency require a CCJ of some description, something to act up-on?
What really does constitute proof of contract?
To whom can I report this company too?

Many thanks for all you good work, help and feed back

Sterling G

-taff

without bank details, no DD can be made, so they have given their details to someone in the past to pay for a service and signed to say they wanted it.

If it was insurance, they can cancel it, but if it was a yearly amount to be taken in installments, then extras credit would be applied and if they stop paying, they are still liable for a cancellation fee and that months charge.


why didn't you just cancel the service?

Sterling_Groovy

Hi –taff, thanks for getting back to me,

The bank could find no record of the DDM being setup, no countersigned mandate or instruction; this is just one of the circumstances that set the alarm bells ringing and the key reason that the bank started its investigation. Cancelling the contact with no knowledge of it in the first place was not possible; as it turns out the “contract” apparently rolls over annually with a 14 day cancellation window at weeks 51 and 52, it was the roll over that brought the whole thing to light. Bear in mind that, there has, in the entire period of the alleged contract, been absolutely zero contact from the company, no letters, no phone calls and certainly no notification of any roll over or thank you for your continued custom, no price increases during the term either.