Direct Debit Collection Fee?

mrke

Our dog insurance renewal now includes a Direct Debit Collection Fee. This has just been added at renewal this month.

I have never heard of a fee being applied for the collection of premiums! Is this usual practice or even fair?

The insurance is with Equine and Livestock (www.pet-insurance.co.uk)

Quentin

Assuming they pointed it out to you, then its up to you whether you want to pay it and stay or move elsewhere


(The link you posted doesn't work, though why link to them?)

paddyandstumpy

Is it in lieu of interest?

mrke

The renewal document does highlight the new direct debit fee, this fee has not been charged previously.

Unfortunately we have an existing condition with our pet and therefore cannot change insurer as this would no longer be covered.

I'm awaiting an email reply from them now enquiring what their fee free method of payment is.

My initial post is because this ‘new’ fee is above an annual increase in premium and sounds somewhat underhand.

mattk_180

As long as they've made you aware, which they have, unfortunately it's just a case of putting up with it or moving elsewhere.


It's completely separate to the increase in premium and totally unrelated so not sure you would be able to use that as a valid argument.

eddddy

mrke wrote: »

I'm awaiting an email reply from them now enquiring what their fee free method of payment is.

As you imply, if they were advertising a price - it should clearly state any compulsory charges (such as a direct debit collection fee).

I'm not sure that an insurance renewal counts as advertising.

Even if it did, they would just get their wrists slapped by the regulators and told to stop it. They probably wouldn't be obliged to waive the charge to you.

I guess it's really just the same as a retailer increasing a price from "£10 including p&p" to "£11 plus £1 p&p".

mattk_180

Additionally, I assume the answer to their "fee free method of payment" would just be to pay in full.

mrke

Didn't get a reply by email, so I rang them...

Their fee free payment method turns out to be by debit card!

I have now given them my card details and they will take the monthly payments as usual.

There must be a fee that banks charge companies to utilise the direct debit system for customer payments I guess?

mattk_180

The banks might make a charge, but more likely it's to cover the cost of administering the direct debit process of setting it up, chasing payments, covering losses through defaults and court fees etc.


Have you made sure you are definitely still paying monthly but just straight off a debit card? Not sure how usual it is but debit card is normally taken for either payment of the premium in full or to catch up on payments that are in arrears.

mrke

They have confirmed in writing that the payments are now by card rather than dd as I requested, but there is no mention of 'monthly' in the email.....

So that is a very good point mattk_180, I'll have to get back to them to confirm the payment schedule in writing too, although they did not mention the frequency would be changed on the call....

mattk_180

In which case, clarification is vital. If you've complained about the monthly charge and they've offered that "you can pay it by debit card" it may have come across to you that this meant paying monthly by debit card, which is very odd, whereas they most likely thought you were agreeing to paying the lot in full by debit card to avoid the charge.