Received default notice after insurance company fail to take direct debit

lcgoodac

Today my husband received a default notice. He pays house insurance monthly by direct debit and goes out 28th of every month. He rung aviva on 29th November to pay off the last month of insurance by debit card , he paid it and was informed account was settled. So thought nothing more of it and cancelled the direct debit. Today he received a default notice dated 1st December saying they were unable to collect payment on 28th November as direct debit had been cancelled. He called his bank who confirmed that aviva made no attempt to collect dd on 28th November and dd was indeed cancelled on 29th November and a debit card payment was made on same day which was true. Aviva are still saying the account is settled so we are very confused

But will this affect his credit rating?!

[Deleted User]

It could go down as a missed payment if you don't sort it out.

Contact Aviva to see if any money was owed and if not, ensure that it hasn't been marked as a late payment.

McKneff

Are you sure a default notice has been sent. They don't happen that quick

lcgoodac

Yes we have the letter in front of us

[Deleted User]

What exactly does it say?

boo_star

lcgoodac wrote: »

Yes we have the letter in front of us

It's possibly because you cancelled the DD.

The originator (Aviva) would have been informed via AUDDIS that the DD had been cancelled. It may have caused their system to "throw a wobbly."

As others have said, it would be a good idea to phone them and ensure nothing is amiss.

[Deleted User]

lcgoodac wrote: »

Today my husband received a default notice. He pays house insurance monthly by direct debit and goes out 28th of every month. He rung aviva on 29th November to pay off the last month of insurance by debit card , he paid it and was informed account was settled. So thought nothing more of it and cancelled the direct debit. Today he received a default notice dated 1st December saying they were unable to collect payment on 28th November as direct debit had been cancelled. He called his bank who confirmed that aviva made no attempt to collect dd on 28th November and dd was indeed cancelled on 29th November and a debit card payment was made on same day which was true. Aviva are still saying the account is settled so we are very confused

But will this affect his credit rating?!

Hi lcgoodac,

We're happy to look in to what's happened regarding the policy payments for you and your husband.

If you haven't already called in, can you ask your husband to email us at social@aviva.co.uk with the following details and we'll take things from there:

• Policy holder's full name
• Date of birth
• Postcode
• Policy number

Many thanks,

Marv
Aviva Social Media Support

Westminster

My approach is to leave DDs in place for 2-3 months after closure of any account to allow for exactly this eventuality.

It is much quicker & easier (with far less impact) to recover an overpayment (especially if you manually pay so close to a DD being due) than to clear up the mess of an inadvertent default marker .

jessbob

I am disgusted. Mum died on the 20th July. Cancelled insurance on the 21st July and set up another insurance with Aviva in family's name. Default notice received today sayingJ uly's payment on the 28th July couldnt be taken - the bank account was frozen when the bank were informed of mum's death. Disgusted with Aviva. I have house, car and pension with them. Think I will be cancelling them all.

[Deleted User]

Any direct debits etc will bounce from a frozen account.

[Deleted User]

jessbob wrote: »

Think I will be cancelling them all.

That's a gross over reaction. Any bounced payment will generate a prompt for payment.

You should have used a different account or paid yourself and reclaimed from the estate.