Quote line insurance liquidisation - please help!

hawalker

My brother has just rang panicking. He got a letter from quote line which he has his van insurance with saying they had gone into liquidisation and so his insurance has ceased but because they arranged credit for him through a 3rd party I am assumed by, they are saying he still has to continue payments for an insurance policy that isn't valid. Can someone tell me if this sounds right please? He can't afford these payments plus a new insurance policy.
Thank you

Quentin

Yes it does sound "right" - the loan he took out to pay his insurance is a separate issue to his insurer going into liquidation.

Has his insurance actually ended? If not he could cancel now and then put in a claim for any refund due on cancellation to FSCS.


If it has actually ended then he needs to take out a new policy before the van goes on the road.


(It will be his insurer that has gone into liquidation, not quoteline - if his insurer is Enterprise then he may still be able to cancel his policy see this thread: https://forums.moneysavingexpert.com/discussion/5539111)

Mr_Poves

Hi , I'm in the same position , my policy is void from the 26th of this month .
Yes he still has to pay the finance , he needs to get some new cover sorted asap .
I have spoken to the finance provider and the fscs are paying compensation directly to them hopefully within the next month or so .
This means we may or not have a balance owing to us , even though I personally have paid more than I have actually had out of the policy .
quoteline are sorting some pretty good 0% deals for people stuck in this predicament .
The finance providers have stated they may put the balances that are still owing on hold , and will try their best to avoid any hardship issues for customers , they understand that new policies will be needed and they will take priority over the existing repayments .
Just ring up and speak to them , that's how I found out .

Mr_Poves

Quentin wrote: »

Yes it does sound "right" - the loan he took out to pay his insurance is a separate issue to his insurer going into liquidation.

Has his insurance actually ended? If not he could cancel now and then put in a claim for any refund due on cancellation to FSCS.


If it has actually ended then he needs to take out a new policy before the van goes on the road.


(It will be his insurer that has gone into liquidation, not quoteline - if his insurer is Enterprise then he may still be able to cancel his policy see this thread: https://forums.moneysavingexpert.com/discussion/5539111)

I considered cancelling mine but thought better of it for the hassle of claiming directly from the fscs , my broker has managed to get me a full year's no claims for the 4 mth's I've had , combined with a 0% new financed policy I don't think I will lose out much , thankfully .

magpiecottage

Look here for details of how the FSCS will work on this.

If you are a private individual, rather than a business (which I realise my be the case if you drive a van) then any finance deal arranged through the purchase of the policy may be covered by the Consumer Credit Act, making the lender liable as well.

Mr_Poves

magpiecottage wrote: »

Look here for details of how the FSCS will work on this.

If you are a private individual, rather than a business (which I realise my be the case if you drive a van) then any finance deal arranged through the purchase of the policy may be covered by the Consumer Credit Act, making the lender liable as well.

I'm very interested in this , all I'm being told is keep paying !

magpiecottage

I suggest you contact the finance company, referring them to section 75 of the Consumer Credit Act 1974 and ask them how they wish to resolve it.

Consumer Credit disputes come under the jurisdiction of the Financial Ombudsman Service but you first need to do what I have said. If they do not help you need to make a complaint to the lender that they are not honouring their obligations and only if that does not produce a satisfactory outcome can you go to FOS.