Premium Credit - Fraud?

Yllas

Hi
My other half has received a letter from Premium Credit stating that he owes them 350 for a cancelled car insurance policy.
This policy was taken out in Jan by his employer and put into his name. When he realised, he spoke with his eployer and they said they would amend it so it was not in his name and address and just covered him as a driver. They obviously did not do that.
He has spoken with Premium Credit and they said they do not need him to sign anything to take credit out in his name (just his personal details) and this is totally legal and he owes them the 350.

Please help - his employer is refusing to pay this (going into liquidation) but my other half does not want his credit rating impacted so cannot wait until the financial company come in

Thanks

eskbanker

I don't think it's fraud but equally I don't think your other half is liable for this debt if it was a policy taken out (and presumably originally paid for) by his employer, so I'd dispute the debt with Premium Credit unless they can prove in writing that your other half is liable.

Going into liquidation doesn't transfer any obligations to the (ex-)employee so the employer should still be the creditor here, it may be that Premium Credit realise they're not going to get the money from the employer and are trying it on....

Yllas

Hi - he called premium credit and they said they did not have to provide a signed agreement and this was an employment dispute and they would not get involved (and yes - the employer has been paying this until now)

eskbanker

It's not up to Premium Credit to decide who to chase for payment! If the policy was taken out by the employer and they've been paying for it ever since then Premium Credit have no basis on which to seek payment from the employee, or at least the onus is on them to demonstrate that they have such a basis in somewhat more credible terms than saying "we don't need to"! I'd suggest your other half writes back to them disputing liability for any debt and put the ball back in their court....

bris

As it's regulated it will be a black mark against him and could trash his credit file.


The problem is the policy is in his name and address so for all the insurer cares about it is his policy which he has clearly benefited from.


The fact the employer has been paying it means nothing to the insurer, they don't care who pays it. The policy holder is liable and that is the bottom line.


The OP's OH has a civil case against the employer but this isn't going anywhere due to the circumstances the employer is in.

eddddy

Currently your OH will have a default on his credit file. and an "insurance cancelled due to non-payment" marker - both of which are not good.

If you're saying that the insurance policy was taken out by the employer without your OH's knowledge or consent, you should tell the insurer and your OH should not be liable. (It would be treated as insurance fraud.)

But if it was all done with your OH's knowledge and consent, then your OH would be liable.


(But if the insurer doesn't believe your OH's version of events, you might have a bit of a fight.)