charges for paying by direct debit?

annasharl_2

Hi all. I don' know if i'm posting this in the right section of the forum, but i have a question that hopefully someone will be able to answer.

Can insurance companies charge fees for paying by direct debit? I have just renewed my building and contents insurance with Barclays. They are charging me £1 each month for paying monthly which means my insurance is costing me an extra £12 per year. Is this legal?

Thanks

Annasharl xx

lisyloo

The whole amount is due up front.
They don't charge you for direct debit, but they charge interest for what is effectively a loan or credit.

Yes it's entirely legal to charge for credit.

If you don't want to pay the extra then pay for the insurance in one lump sum up front.

If you can't afford that they you could consider getting a 0% credit card and putting it on there.
This is still using credit but it's 0%.

Obviously you need to be disiplined about paying this back as it can tempt people into getting into debt.

annasharl_2

Thanks for clearing that one up lisyloo. :T