Non-authorised recurring payment on car insurance

Voyager2002

Cyberman60 wrote: »

I phoned RAC on the day of receiving the quote to advise them that I did not want to renew but could not get through on the phone number they gave, only getting a constant recorded message saying 'please hold the line is busy etc'. I was due to leave the UK the following day for a month so eventually had to give up on the phone call, thus I decided to inform my bank to stop this payment under all circumstances by their online secured banking email.

If only someone would invent some way of writing on a piece of paper, and then physically moving it to the office of the people you are trying to contact.

Cyberman60

rach_k wrote: »

Couldn't you have put a quick letter in the post to cancel the insurance?

I was travelling for a month abroad the day after I got the renewal advice so after phoning RAC at length with no answer apart from an answering machine I thought cancelling with my bank would be enough. According to various websites I've read today that is enough since the law changed in 2009.

I take your point though and will now raise a complaint via their website email service.

The_Boss

A complaint to RAC? What have they done wrong?

Cyberman60

Voyager2002 wrote: »

If only someone would invent some way of writing on a piece of paper, and then physically moving it to the office of the people you are trying to contact.

Indeed, but as an ex-banker I was aware of a 'stopping' procedure that I thought would be enough and it appears thankfully/luckily that it is enough since 2009. :j

Cyberman60

The_Boss wrote: »

A complaint to RAC? What have they done wrong?

They have an inadequate telephone cancellation service in my view as to spend 40 minutes listening to a repetitive 'we are very busy please wait' answering service is definitely not efficient customer service !!!

Gaz83

You could have written the letter when on hold.

ETA: I genuinely think some people want to make things difficult for themselves.

Cyberman60

Gaz83 wrote: »

You could have written the letter when on hold.

ETA: I genuinely think some people want to make things difficult for themselves.

Nah, I was browsing the internet !! :rotfl:

chattychappy

I agree on the bank issue. They must refund the money.

If the deal with the RAC did provide for auto-renewal, then even if the insurance policy is cancelled by non-payment, there might still be provision for a cancellation fee. I doubt whether they'll pursue it. If they state that the renewal can be cancelled by calling a number, then it is an implied term that they will answer that call in a reasonable time. One can argue about what is reasonable - but given what the OP has said, it is another reason why I'd be surprised if the RAC follow it up following the complaint.

YorkshireBoy

Cyberman60 wrote: »

I was travelling for a month abroad the day after I got the renewal advice

So if the post had been delayed - even by just 24 hours - you'd have been in an even worse position?


Two tips for the future...


I always find that prevention is better than the cure...whenever I take out insurance I make it abundantly clear that the card details used are not to be used for auto-renewal. I then call them back a few weeks later to ensure they've complied with my wishes.


If they don't answer the renewal number, try the new customer number...you'll invariably find they all have access to the same systems.

eddddy

Cyberman60 wrote: »

There was nothing in writing as it was an online insurance. Yes, they could argue that there was a clause I should have seen but I know that I never ticked a box to directly authorise recurring debit as I never would agree to that.
...

Hi Cyberman60

There's usually a term in the policy that makes it very clear that it will be auto renewed. E.g. in an Axa policy:

Renewal
Your policy will renew automatically. You will be contacted prior to the renewal date to check that your details are still correct and current. Please see general condition 14 on page 28 of this policy.

http://www.axainsurance.com/car/policy-wording/2_1_122_CarPolicyWording.pdf page 4

Or a MoreThan policy:

L. AUTHORITY TO RENEW
If we are willing to continue providing cover and we advise you before the policy’s renewal date of our renewal terms, you
authorise us to renew this policy and any subsequent policy
on expiry, in accordance with our renewal terms at that time,
unless you advise us otherwise before the renewal date.

http://www.morethan.com/sites/default/files/policy-wording.pdf page 22

So assuming your policy has similar wording, you have agreed for it to be renewed, but by cancelling the payment authority, you have failed to pay for the renewal.