Axa Sunlife

SecondLife

I have held a policy with Axa Sunlife since 12 April 2005.
Their schedule of payments stated that on the 12 May 2005 the premium should be paid and thereafter monthly, this I have done and it has been kept up to date.

I noticed this month they took double the premium, when I queried this they have told me that I have been in arrears for the last 13 years and that they have decided to rectify.

I have never received any notification of this so called arrears, neither did they notify me that my DD would be double the amount this month, is this not against the DD Guarantee?

Interestingly enough they have taken double my premiums but not that of policy for my husband.

So angry at the moment, need to calm down, but this is an appalling way to treat their customers particularly at my age where they have me tied in as I probably could not get another policy for the same amount now :mad:

Quentin

Yes they have given you grounds to use the dd guarantee


Separate to getting on to your bank to credit your account ask the insurer to itemise the arrears and take it from their response

SecondLife

they are claiming that as I took the policy out on the 12 April 2005 then I should have paid the first premium then, but my argument is that I paid as per the request and paid on the 12 May 2005.

dunstonh

Yes, it is bad service but using the DD guarantee scheme would leave your policy in arrears and give them grounds to cancel the policy.

particularly at my age where they have me tied in as I probably could not get another policy for the same amount now

Is this for life assurance proper or one of their awful endowment plans or an over 50s plan?

Quentin

So this is just one payment missing?


If so it looks as though they could be correct - what would have happened had you died on 13/4/05 when no payment had been made??


Looks no argument you owe it, but they should have told you before taking it by DD


(You have grounds to complain to Axa about them breaking the DD rules - a complaint might result in a goodwill gesture!! If you are unhappy with the response to your complaint you can escalate to the FOS for their adjudication at no cost to you, but cost to the insurer in management time and FOS fee, which is why you often get a goodwill gesture to kill off a complaint from the outset)

Quentin

dunstonh wrote: »

Yes, it is bad service but using the DD guarantee scheme would leave your policy in arrears and give them grounds to cancel the policy...

Any insurer cancelling a policy because their client legitimately used the dd guarantee after the insurer had broken the dd rules could expect FOS to rule in favour of the client!


In this case they have waited nearly 13 years to collect a DD payment of one single month's premium and not informed their client to expect a double payment being taken!!

SecondLife

it is one of the over 50s plans, yes I know they are bad but at the time due to circumstances and health it was the only option open to us, now nearly 13 years later we will still be in the same boat

dunstonh

Any insurer cancelling a policy because their client legitimately used the dd guarantee after the insurer had broken the dd rules could expect FOS to rule in favour of the client!

I disagree.

The service, in this case, is very poor but the debt is correctly owed. If the policy is in arrears and the policyholder refuses to bring it up-to-date then they are totally within their rights to cancel the policy.

The fact they messed up a direct debit collection doesn't change the fact money is owed.

A complaint about their handling may well result in a goodwill gesture that is similar to the premium. In which case, they effectively end up paying that premium.

Quentin

dunstonh wrote: »

I disagree.

The service, in this case, is very poor but the debt is correctly owed. If the policy is in arrears and the policyholder refuses to bring it up-to-date then they are totally within their rights to cancel the policy.

.

In this case the client isn't disputing the amount, but the misuse of the DD system by the Insurer


Where have you read the OP refusing to bring it up to date?


Creditors cannot use the DD system like this. They agree to inform the client about changes in advance of taking the money!

SecondLife

Quentin wrote: »

In this case the client isn't disputing the amount, but the misuse of the DD system by the Insurer


Where have you read the OP refusing to bring it up to date?


Creditors cannot use the DD system like this. They agree to inform the client about changes in advance of taking the money!

Thank you, I have not refused to bring my policy up to date as I have not been aware of this. When I took the policy out they asked for the first payment to be made on in May 2005 this was done and has been paid every month since.

Quentin

Definitely make a complaint (and use the DD guarantee - they won't cancel the policy if you do, that's scaremongering)


Get them to itemise and confirm the arrears. (Do you have the original leaflet/ad you replied to? They often used to give you a free month or two as an inducement to take out this type of policy)