If you cancel a direct debit, can they still request money?

suestew

Hi, we have just swapped our insurance company and hubby wants to just cancel the direct debit, but I think it's best to call them and tell them so they do not try and take it out at the start of the new policy year. It does state on renewal that if they do not hear from us then they will take monthly payment.


Thanks

McKneff

Oh you definitely need to ring them, cancelling a direct debit just does that. The bank don't inform them. You must do that. They wont know other wise.


Ring them up to stop the renewal and follow it up with a letter or email and be sure to save the email.


Don't mention the word cancel, just say you don't want to renew.

suestew

Thanks. Out of interest, why do you not mention the word cancel?

InsideInsurance

Cancelling payment stops a company from collecting payment. Unless it is stated that this is a valid way to cancel a service/ order etc then you aren't cancelling it, just not paying for it, which means you still owe the money and now also potentially owe late payment fees or missed payment fees.

Some companies will also be naughty and just set up a new DD if they find the original one has been cancelled.

Assuming you have actually cancelled, or more accurately in this case told them not to renew, the service then you can cancel the DD assuming there is no last payment or reimbursement due.

InsideInsurance

suestew wrote: »

Thanks. Out of interest, why do you not mention the word cancel?

Because it sounds like you dont want to cancel, you want to allow the policy to lapse/ not renew.

Cancelling is terminating it early and typically invokes cancellation fees

CAN1976

suestew wrote: »

Thanks. Out of interest, why do you not mention the word cancel?

Presumably you wish them to continue your cover until the policies expiry date.

JuicyJesus

InsideInsurance wrote: »

Because it sounds like you dont want to cancel, you want to allow the policy to lapse/ not renew.

If that is the case then the OP should also check that the policy won't auto-renew.

suestew

CAN1976 wrote: »

Presumably you wish them to continue your cover until the policies expiry date.

absolutely, but the last payment in November would have been the final payment on that years policy. The policy renewal date is in December.


Thanks for replies, I did think you would have to ring so will get on to that tomorrow.

InsideInsurance

JuicyJesus wrote: »

If that is the case then the OP should also check that the policy won't auto-renew.

Yes, the comment was not to say you wish to cancel, not that they shouldnt contact

pmduk

McKneff wrote: »

The bank don't inform them. You must do that. They wont know other wise.

Are you certain? I understood companies are told when a DD is cancelled?

Sinhanada

Cancel the direct debit first - this will stop the company from being able to take the money out, but also Write to them and explain that you have cancelled the direct debit