Car Insurance cancellations

john8b

Hi, In may this year my bank had insufficient funds to clear my direct debit for my car insurance. Every month since then I have rang them, they said they would re set it up, they have failed. My account has had funds in since May. My bank are not even recieving the instruction from them for a direct debit. The insurance company are trying to charge me £20 per month for re-setting it up. I have had enough and decided to change companies. As this is my first year with them, there is a cancellation fee of £55, plus a percentage of the policy to pay if i cancel. Am i right in thinking that as I am willing to continue trying to pay, it is there failure to set up the direct debit that is forcing me to cancel, there fore it is there fault.
John

lisyloo

Well technically they aren't forcing you to cancel.

Have you got to the bottom of the problem with the direct debit?
Have you made a formal complant following their formal procedures (very important to go down the right channels here as it often gets deal with by a department with more power).

I would sympathise with your argument but I'm not sure you are correct legally as you aren't actually being forced to cancel.

I would say you need to formally complain.
Legally you usually need to give a company every opportunity to put things right and if you haven't formally complained hen you haven't done that yet.

nickmack

john8b wrote: »

Every month since then I have rang them, they said they would re set it up, they have failed.

Check ther bank are not preventing the Direct Debit from being set up. Sometimes once a few payments are missed, the DD is cancelled and the bank will not allow the same payment authority to be used on that account.

I've seen instances where the company has blamed the bank and vice-versa and it's difficult to work out who's done what.

[Deleted User]

I'd agree with nickmack, there is often a problem for banks resetting up the same direct debit reference number. Its probably best to do as lisyloo says, and if you feel that you aren't getting anywhere then make a formal complaint.

HTH
Becca

john8b

i have checked. the insurance company say there requests go through a back banking system before reaching my bank, it is the back bank that is rejecting it, they have asked me to set up another account at the bank , which i feel i neednt do, as i have one. they are reluctant to change there policy number also , which would rectify the problem

lisyloo

Are there any other payment methods open to you?
What rate of interest are they charging for using direct debit?

Would it be that much hassle to call them every month and pay by switch.

I know you shouldn't have to do this but it may cause you a lot less grief.

nickmack

john8b wrote: »

i have checked. the insurance company say there requests go through a back banking system before reaching my bank, it is the back bank that is rejecting it, they have asked me to set up another account at the bank , which i feel i neednt do, as i have one. they are reluctant to change there policy number also , which would rectify the problem

Sounds like the best option is to have the DD's taken from another account. Any option is likely to be more hassle than it's worth.

You're unlikely to get the bank to accept the DD and for the Insurance company to change your policy number, you will probably incur a charge.

I don't believe you're going to get very far blaming the Insurance company. Perhaps communication of the real problem wasn't the best. They may be sympathetic, but it wasn't their fault the DD wasn't paid or their fault they couldn't set it up after it was rejected several times.