Misleading Quote and Direct Debit Collection Charges!

LowBudget

I received a renewal quote for horse insurance, which appeared reasonable for the benefits against other insurers. The quote included a Direct Debit agreement with the amount filled in. However when my first Direct Debit was taken the amount was much greater and there is also a monthly charge for collecting my direct debit.
Is this allowed?? How best can I challenge this?

InsideInsurance

It is normal that to take credit to spread the costs monthly that interest is added to the bill.

What does the covering letter say about prices for paying lump sum -v- monthly? If it doesnt say anything then how does the price compare? Does it say how many monthly installments there are as some take 10 rather than 12 (like council tax)

dunstonh

There are a couple of documents issued in the process that you should have received before the payment is taken.

1 - a quote on the monthly payment (which is typically higher than annual premium as you need to consider the cost of finance)
2 - advance notice of the monthly direct debit amount and dates. This would arrive at least 10 days before the first payment.

What happened to these?

Is this allowed?? How best can I challenge this?

Yes it it allowed. There is nothing to challenge. However, you should have had the documents above. Did you ?

LowBudget

Horse Insurance is generally offered as a monthly or lunar month payment option and that is what you are quoted on. The charge isn’t due to credit for monthly payments it’s actually stated as being a “collection charge” and while not a huge amount, again it wasn’t included in the monthly amount quoted in the renewal and on the direct debit agreement. I’ve never been charged for a direct debit payments before only for credit or credit card payments (which is usually clearly stated).
Also if I'm agreeing to and giving my bank permission to debit a set amount on the Direct Debit Agreement, how can they just debit a completely different amount without letting me know? I was quoted £32.50 but have been debited £39.50 an additional £91 over 13 lunar months.