Has the FSCS paid me in error?

Pegmorton

In june 2017 I received compensation from FSCS for an insurance policy for a company that went into administration in Sept 2016. Yesterday I received a phone call from the insurance broker stating that FSCS have paid the compensation to me in error and I owe them (the broker) the compensation. I was told I have 7 days to pay or they will pass the debt to a debt collector. If the fscs have paid me in error would FSCS not have to reclaim the money from me first and then pay it to the broker? It is very strange that the broker has never asked for any payment until now and then only given me 7 days to pay. I am going to ask for paperwork from the broker to show why I owe them this amount. The amount they have requested differs from the compensation paid. Any advice would be much appreciated.

pmduk

I'd talk to the FSCS first

Pegmorton

Yes. Thank you. I have already emailed FSCS - awaiting a reply. I am going to contact CAB too.

dacouch

Did you pay the insurance policy via instalments?

Pegmorton

Yes but to premium credit not the insurance broker. Premium credit cancelled the credit agreement when the policy was cancelled.

Fosterdog

Did you use a broker to take out the policy? If so did you sign any T&Cs allowing them to claim their commission from you if the policy is cancelled for any reason?