XS Direct - Is it a scam?!

dacouch

a) Why did they cancel your policy? Did you default on payments or did they decide to cancel it and if so why?
b) Try brokers who specialise in drivers with accidents, there are plenty about. Explain to them your problems, if they can't help you ask them if they know anyone who can as they may know someone

Daz2020

Yeah I already have done all that, I actually tried another site that checked over another 100 companies for me with my circumstances and even they came back with not even one single quote available due to my circumstances which basically all boils down to XSDIRECT. The reason the policy was cancelled was I was late with a payment and 10 days later they gave me a notice my policy was up for cancellation so not having the money to pay it by the deadline it was cancelled 16th March this year and has already been passed onto a debt collection company. I've made multiple attempts to contact them, but it's a number that costs alot of credit on mobile and I'm always cut off while waiting on hold so never get to speak to a real person but have been regularly asking them via email to phone me only to get text messages to my number again asking me to phone them. I've tried everything there is possible, I've made a repayment offer for the outstanding months installment owed which was £251. Because I was late I got a £30 penalty added and another 5 days to pay the full £250 + £30, which I still never had the money then to pay so after the 5 days the policy was cancelled which added a £500+ fee for the cancellation. (This is Insure Your Motor in speaking about). If they had given me another few days I could have made the £280 full payment and continued to keep the policy but they refused to overturn the decision to cancel and I ended up with the £957 owed for the policy cancellation with IYM. With XSD, they are hardline stance on me paying the £3000 before they will give me another policy so the only option I do have is with XS Direct for a policy again. I need them to agree to opening a new policy and allowing me to pay the excess on top of the monthly installments which i doubt they will and if they don't i wont have insurance nor a chance of getting it with anyone else. Bottom line looks like, as of now, I have to pay £3000 then open a new policy, unless they do agree to give me the policy and allow the repayment of the excess on top of the monthly insurance policy installments. If not, I have zero chance of getting insurance with anyone else as I have tried as of tonight over 150 different companies and all have refused bar XSD and another who want £7000 for 1 year of cover on a 1.4 Seat Ibiza that cost me £1200 to buy in January. That's the deal and there is no way around it unless XSD will let me pay both a policy and excess off monthly. I honestly think I am screwed with no way around it at all.

dacouch

The broker charged you a £500 cancellation fee?
How long was left on the policy / instalments left

Daz2020

I'm not sure, it was a continuation of the policy which I had with XSD/IYM from a previous vehicle. I had the first for 7 months and changed it January, but I had moved address and it got me a discount on the installments because of the change of address so I was insured for 11 months that were regularly paid and defaulted on the Feburary payment this year. So started the policy on one car in May 2019 and changed cars January which got me a discount. I defaulted on the February payment and subsequently cancelled in march. I always paid the installments at the end of each month. 
It was a fine print section that a cancellation would result in the £500 penalty just as a late payment would be a penalty of £30 each time it may have been late so end of February I missed the payment and was cancelled by the broker on March 16th.
A few more days leeway would have allowed me to avoid the cancellation but they refused to extend it for me and cancelled from their side, not mine. I done all I could and begged to be given the extra few days but it wasn't to be hence the cancellation and penalties. All adding up to the £957 now in the hands of another collection company which I have made an offer to repay. Still to hear back if they accept or want full payment on that. I have no contact for XSD bar the claims manager so I mailed him explaining it all and what I propose for the policy and repayment of the £3000 excess, doubting it will matter but in that case I have told him if this is not possible then I would offer to repay the excess only at what I could afford which would be the same as the other debt at £10.00 per month. That's reasonable given I'm already living on what the law states is the standard daily living costs and would further need to cut more if I dont have a car and need to pay for public transport everyday. The policy and repayment option I proposed would be better for them and work out better for me too but I am still very doubtful they will accept either payments, if such is the case, I will let them take me to court as I'm living below my means as it is and paying any more than offered without the use of my car would put me another £20 lower in living costs. I need to pay for heating, electricity, food and personal hygiene etc then on top theres the cost of daily transport to and from another city so again, if they gave me the policy and repayment option monthly and allowed me to drive, I could afford it and also be less worse off than I am already at the moment. 
I have e pained all this to the claims manager but he will just tell me it is not his department and I cant get any other XSD department contact to discuss this. I've asked him if he does say it is not his department to pass the message on for me as I have no other contact info for them without being directed to the claims department or the broker. 
The more I think about it, it seems like a scam but obviously it can't be but when I searched for XSD online, this is the first result I got and any other I have looked at all have different numbers to phone, which I already have saved as contacts but every one leads me to either the XSD claims or one of the finance companies. It's been a lose lose situation ever since I opened the policy last year with this dang company, now the resulting effect has stopped me being taken on for a policy by now around 150+ companies altogether, after searching multiple sites tonight checking for quotes. 35 companies first search, then I tried a few directly myself and another comparison site with over 100 companies again tonight. Only 2 that would accept me were again XSD and one that wanted the £7000/yr for a policy. Leaving me with XSD my only single option now.

Daz2020

I also have to pay extra on a top up on a rented flat each month to keep a roof over my head so my expenses are as stretched as can be and the public transport is making things worse, the use of a car would enable me to eat in my father's with him and I would also save on the use of electricity and heating costs and some food shopping because I would go half and half with my dad on food which we could both eat instead of him cooking for himself and having to throw half out after a day or 2 where I could help pay and take half for myself too. The policy would make payments and costs better and easier to manage for every party involved but it's getting XSD to agree which indeed as extremely doubtful given their responses ever since the policy has been cancelled. It looks grim today the least and I'm not hoping for any change to be honest with their attitude towards customers. I have made repayment offers to both debtors either way so I've done all I can possibly do, it lays in the decision of XSD now.

zakary

I'm really sorry to hear about your situation. I don't think what I'm going to say will make you feel any better but I'll just let you know how my situation ended. I took the matter further to the financial ombudsman but it came back in favour of XS Direct and I had to pay the full excess amount to them in February last year. It was a really stressful time and I just wanted to pay and forget about them! After I made the payment I got contacted by them that they were taking the matter legal as the third party was claiming injury. This again opened up the matter and made it horrible again. I had several interviews etc with them and a court date was set for February 2020 (2 years after the accident). Around January I recieved a letter that the third party had withdrawn and the case was finally closed. I hope to never hear from them again!! Unfortunately I think they will do whatever they can to get your money. They survive on taking money from the most vulnerable people:(

Daz2020

I agree and I'm fully expecting the same outcome unfortunately. Only thing is, I'm stubborn and I'll simply refuse to pay if they take it that far. I've nothing to take as payment so it will be in a judge's hands. As long as I have made an offer to repay, that's all I can do within my power so they either accept or decline. Honestly, at this point, I dont really care anymore about them I was just hoping they would have a bit of sympathy towards my situation but as you say it is unlikely.
Thanks anyhow bud.

FlameCloud

Why would you take out a contract that you don’t have the means to pay? Why would you expect an insurer to not ask you to pay the excess - presumably you would like them to deal with the claim?

Daz2020

I was paying it without issue for a while, it was ONE month I could not pay the installment and needed a few extra days so I did have the means and could have avoided all of this if the broker had allowed me those extra few days but they never so they automatically cancelled it hence the extra fees. I am not stupid, I would not have taken a policy nor bought a vehicle if I could not have afforded the payments. It has been explained to the broker, their associated parties and XSD themselves. I am now awaiting an answer on what to do next. The claim settlement details were told to me by IYM themselves, though an email today has informed me by XSD that the claim was not settled as of yet so I'm being sent round in circles. It has all been explained and offers been made so nothing else needs be done until XSD make the decision on the policy. I am now waiting on them and that's as far as I've got and as far as it goes until I hear back. I'm tired of this now after all this hassle so no need for further replies except from XSD so I thank you for your help.
Regards. 

dacouch

If I recall XS Direct have a section either on their website or in their policy about repaying the excess and offering their suggestions if you cannot afford to pay it in one go as clearly a lot of their customers cannot afford to pay the excess in one go. Have a look at that, it won't be accepting £10 a month but will set out their standard option

As I mentioned before go an look and post on the Bankruptcy section of MSE forums, I'm not saying you need to go bankrupt but their are people on their who have the knowledge to help you negotiate a payment plan you can afford