Halifax paid insurance company £170 despite them only having out of date debit card

Payless_2

As above really. I bought my home insurance from AXA last year and to an extent this is my own fault. AXA emailed me to ask me to update my debit card info. I didn't and they then emailed to say my home insurance was due for renewal and gave me a quote. I found a lower priced policy elsewhere and bought this. But I didn't inform AXA as I assumed that they would be unable to take money from my account with only out of date debit card info.

How wrong I was. The Halifax gave them the money. AXA did not email to say that my policy had been renewed and by the time I noticed that the money was gone from my account the 14 day cooling off period was up. Consequently they get to keep 25% of my annual premium when I cancel.

I'm really peed off about this. Especially as a quick google leads me to believe that AXA underwrites Halifax's own home insurance products. All very cosy.

Anyhow, why are banks allowed to do this? If I tried to use my old debt card in a shop, it would be declined

jonesMUFCforever

Halifax did not 'give' them the money - axa asked for it because you authorised a CPA on your card and as you did not cancel the policy, the terms which you agreed to this time last year, kicked in.

Sorry but you are to blame here.

grumbler

MSE article: Continuous payment authority: manage recurring payments

Read the original paperwork and the renewal letter and you'll see that they warned you and you should have cancelled the auto-renewal instead of making assumptions.

Steve_xx

Yes but if you use your lapsed debit card in a shop then it will be declined as at that point it is no longer valid. But with the insurance you set up you will have authorised them on a Continuous Payment Authority basis and this means, as you've found to your peril, that they can continue to collect monies owed.

There are two ways of looking at this. The insurers say that they want to protect you from running into a situation where your policy lapses. But really they want you not to notice the transaction. The other way of looking at it is from a nannying point of view.

To my mind, the right way to deal with this problem would be in the insurer actually offering you the choice of whether you want to have a Continuous Payment Mandate setup at the point that you take out the policy. I for one would refuse it if given that option at the start.

Another way of dealing with this would be to inform the insurer as soon as you take out the policy that you want it to lapse at the end of its primary period. Therefore effectively giving them 12 months notice that you will be quitting! And, I advise you to do this now with your new insurer if the policy is set up similarly on a CPA.

Payless_2

jonesMUFCforever wrote: »

Halifax did not 'give' them the money - axa asked for it because you authorised a CPA on your card and as you did not cancel the policy, the terms which you agreed to this time last year, kicked in.

Sorry but you are to blame here.

Is this the case even though I pay my home insurance up front and not monthly? This seems a very dubious practice to me. I also pay my son's car insurance annually and didn't cancel his old provider because the card was out of date and they didn't do this.

Steve_xx

Payless wrote: »

Is this the case even though I pay my home insurance up front and not monthly? This seems a very dubious practice to me. I also pay my son's car insurance annually and didn't cancel his old provider because the card was out of date and they didn't do this.

Yes possibly it is the case - you need to look at the terms and conditions that you took out the policy on.

Your sons car insurance must not have been on a CPA.

Payless_2

Steve_xx wrote: »

Yes possibly it is the case - you need to look at the terms and conditions that you took out the policy on.

Your sons car insurance must not have been on a CPA.

A recent email from AXA states that it was up to the discretion of Halifax as to whether the payment was made.

jonesMUFCforever

Payless wrote: »

A recent email from AXA states that it was up to the discretion of Halifax as to whether the payment was made.

It might be that a payment on an expired card may go through but a lost stolen or lost card may not go through.

Westie983

Payless wrote: »

A recent email from AXA states that it was up to the discretion of Halifax as to whether the payment was made.

Halifax is just the router between you (customer) and the Company (Seller of service) so why would it be up to the router to make or decline the payment....

Its just the route in which the payment is made. If the bank gets a authorisation to release x amount from your account they will assist by complying.

When there is issues you are alway directed to the company at first instant then the bank can get involved if they are needed to intervene and try and help.

GingerFurball_2

Payless wrote: »

A recent email from AXA states that it was up to the discretion of Halifax as to whether the payment was made.

Sounds like the usual "everyone hates banks so we'll just blame them" !!!!!! that retailers love pulling.

agrinnall

GingerFurball wrote: »

Sounds like the usual "everyone hates banks so we'll just blame them" !!!!!!!! that retailers love pulling.

I agree, taking the money was entirely AXA's doing, and if they had any balls they would confirm that they have done nothing wrong, but instead they're taking the cowards way out and trying to place the blame elsewhere.