Car Insurance Took Money Prior To Renewal Even Though Cancelled

MJ_15

My car insurance renewal was cancelled over the phone 3 working days prior to the renewal date. The next day I obtained insurance elsewhere, to start in 2 days time. I emailed the company a few days later to confirm in writing that the renewal had be cancelled/removed from the policy as stated over the phone. The company confirmed that the renewal had been removed, however a payment was already pending and been applied for.

Are companies allowed to take payments prior to renewal dates without customer permission? They have stated that once the payment has been received, they will refund the money. However I feel as if this was an unauthorised payment and that sufficient time was given for the policy to be cancelled, therefore money should never have been taken.
Any advise?

Thanks.

Car_54

You may be right, but what do you want to happen?

They'll refund the money. If that's not quick enough, your bank should refund it. What else are you looking for?

bertiewhite

I had this with Swinton so I phoned them up and the money was refunded. Easy

Rolandtheroadie

I think the last letter I got (renewal price) asked me to give them 5 days notice as they would apply for payment at that point. So I called up 12 days before and cancelled the auto renew just to be sure.
Done the same with the OH's, but they took payment anyway. Quick call, got a refund and a tenner for any inconvenience. I'm sure if you incurred any charges due to them taking the payment, they would pay these as well.

neilmcl

MJ_15 wrote: »

My car insurance renewal was cancelled over the phone 3 working days prior to the renewal date. The next day I obtained insurance elsewhere, to start in 2 days time. I emailed the company a few days later to confirm in writing that the renewal had be cancelled/removed from the policy as stated over the phone. The company confirmed that the renewal had been removed, however a payment was already pending and been applied for.

Are companies allowed to take payments prior to renewal dates without customer permission? They have stated that once the payment has been received, they will refund the money. However I feel as if this was an unauthorised payment and that sufficient time was given for the policy to be cancelled, therefore money should never have been taken.
Any advise?

Thanks.

The payments and customer account are quite often on 2 different computer systems and I wouldn't say that 3 working days is sufficient for both system to be updated and the payments cancelled in time. I had something similar happen to me, when I rang up to cancel my renewal which occurs on Jan 1st, I contacting the renewals team the previous Wednesday, yet when I looked in my bank account last week I noticed a payment had been taken. I rang them (BMW Insurance/Allianz) and whilst they confirmed the account was cancelled they also said that it probably wasn't quick enough to stop the DD payment.

poppasmurf_bewdley

If they 'took' the money, then it sounds like a direct debit payment.

Just ask your bank to refund you the money immediately under the DD mandate, which they must do immediately.

Marvel1

My last renewal for both home and car, stated if did not wish to automatically renew, contact them with X days before renewal date as payment maybe taken.

agrinnall

poppasmurf_bewdley wrote: »

If they 'took' the money, then it sounds like a direct debit payment.

Just ask your bank to refund you the money immediately under the DD mandate, which they must do immediately.

Or just as likely a Continuous Payment Authority on a debit ot credit card (in fact, if it was the annual premium I'd say it's much more likely to be a CPA). As stated, ask the insurer for the money back, and if they don't return it quickly ask the bank to get it for you.

DoaM

And if the bank says they can't cancel/refund a CPA, tell them they're talking bullocks (and another link) and ask to be passed to a manager!

neilmcl

Just to update my earlier post (#5) I was refunded within a a day or two.