More Than Insurance Default Notice Letter

brittainacb1

Hi

I just wanted to give some advice following an alarming letter I received from More Than when I cancelled my Pet Insurance.

I no longer need the insurance, so I cancelled the direct debit... I realise strictly speaking I should've phoned to cancel it in person, but couldn't be bothered with the hassle of automated phone systems and being on hold for ages, so I just cancelled the DD and waited for them to contact me to confirm cancellation.

The letter I then received was very unexpected. Headlined 'DEFAULT NOTICE UNDER SECTION 87[1] OF THE CONSUMER CREDIT ACT - and accompanied by a formal looking leaflet from the Financial Conduct Authority about debt recovery proceedings and my rights in debt collection proceedings (see images attached below).

I initially thought I wasn't meant to have cancelled and had somehow breached my contract with them by doing so, however, on reading this letter several times, the wording of it started to look a bit suspicious to me.

Only on reading it three or four times - and then phoning them up, does it become clear that actually I did have every right to cancel my direct debit and that in no way constitutes me "defaulting" on a debt or being subject to debt recovery proceedings - as the letter clearly implies, but does not actually say outright. If you read the wording properly, it's clear that you can simply cancel your DD to terminate your policy - but the way this letter is presented is clearly designed to frighten people in to not doing so.

The letter contains phrases like.....

- 'THIS IS A DEFAULT NOTICE'
- DETAILS OF TERM BREACHED
- NATURE OF THE BREACH
- REQUIRED ACTION TO REMEDY
- YOUR LOAN AGREEMENT PRESCRIBED PAYMENT TERMS
- ENFORCEMENT ACTION TAKEN AGAINST YOU IN RESPECT OF THE BREACH
- FURTHER ACTION
- YOU SHOULD GET HELP AS SOON AS POSSIBLE FROM A SOLICITOR

It's written in strong and threatening terms and accompanied by a leaflet given to people who are facing debt recovery proceedings. More Than would obviously say the include this letter to help people, but it's blatantly not needed and is included purely to add to the frightening effect of the letter.

Anyone receiving this letter and not thinking and reading it through carefully would immediately assume they are about to have debt collection proceedings, a court case, a mark against their credit rating... When in actual fact, the conclusion of the letter is really that if you do nothing, your insurance will simply be cancelled with no further action taken or needed.

When I rang them up about this letter, the call centre guy's first words were "don't worry, you won't have any proceedings against you or negative impact on your credit rating" - contradicting what the letter implies, and suggesting to me that they must have plenty of people phoning them in response to these letters and panicking.

The letter is designed by them purely to panic and frighten people in to not cancelling their insurance. I understand the need for them to try to retain customers, but doing so by deliberately trying to panic people with such a deviously crafted letter is bang out of line.

In terms of the actual wording of the letter, they are on safe ground - it doesn't say anything that is not technically true. But the way it's presented is just devious and manipulative - and I'd imagine most recipients of this letter would freak out.

I just wanted to try to publicise this in case anyone else gets such a communication from More Than - and to let them know it's nothing to worry about in reality!

verityboo

The trouble is you purchased a years insurance and took out a finance agreement to pay for the years insurance. You then just cancelled the DD but that doesn't change that you purchased a years policy, not a monthly one. Just cancelling the DD would have been okay if you had paid another way
If you had contacted them and asked to cancel they may have charged a handling charge to do that
It looks from your post that they cancelled the policy because you stopped paying, something you need to clarify as otherwise you might have to declare a cancelled policy every time you try and take out any type of new insurance which will be costly

brittainacb1

I think you're right - and my first thought was indeed that I have breached a finance agreement and am to blame - and I do still believe that's technically true. What doesn't seem right to me though, is that they have said (indirectly in their letter - and directly on the phone) that cancelling the direct debit will just cancel the policy and that I don't actually need to take any further action to cancel it - and I won't be pursued for unpaid debts.

What I didn't like is the fact that, they have no intention of pursuing me under the consumer credit act, that I can cancel the policy by cancelling the DD - and said clearly as much on the phone, yet their letter is deliberately designed with its wording to scare me in to believing otherwise. It's the dishonest use of a threatening letter to trick me in to re-starting the payment that I don't like.

MSE won't let me post images of the letter because I'm a new user unfortunately.

verityboo

Irrespective of whether they are going to chase you for any further money, have they cancelled the policy due to non payment?

If so, when you take out any new insurance policy for any type of insurance you will have to tick the box next to the question 'have you ever had a policy cancelled'. It will be virtually impossible to buy a policy online.

If this is the case is there any way you can reinstate the policy and then ask to cancel (so the cancellation is then simply you asking rather then them cancelling)