BR & car ins.

shortyJJ

Ok so I have checked the register and it says 'auto discharge 5th july'

I have to insure my car. and the cheapest quote is coming back as Tesco bank....
my BR included a tesco credit card (part of tesco bank)

I would be paying the FULL premium outright (so not a monthly finance agreement? )
Can I do this? ( ie. car insurance with a company I went BR with, they have not asked if I'm bankrupt / discharged and I would not be borrowing over £500 because I am paying the policy in full)
Can i do this before the 5th July?
Should I wait til the 6th July?
Should I just not go with Tesco and pay even more to get insurance ?

Sorry for all the questions, just not sure what the best thing to do is
Thanks in advance for any help
JJ

luvchocolate

I would check all the terms and conditions to see if B.R is mentioned ie Have you ever been BR.
Others have been able to get monthly payments I never tried as its cheaper to pay for the year.
I don't think waiting for discharge will make any difference its usually after the 6 year mark things are more normal.

[Deleted User]

I can't remember the exact law/guidance, it came in a few years back when the insurance rules changed.

Essentially you have to give fully honest answers to the questions you ARE asked, as opposed to volunteer information you are not.

If they don't ask, you don't need to tell them. In some instances (e.g. mortgages or high value transactions) it's probably advisable to tell them of anything they may uncover and pull the offer, but again legally it's not neccesary.

With insurance, be very careful to check the 'assumptions' and T&Cs. Tesco immediately flagged with me when I saw this post, as I remember them giving me a quote through Compare the Market/GoCompare or whatever, but then reading something about not having bankruptcy. If you look at https://generalins.tescobank.com/car/disclaimer it seems a clear no go.

They may not have asked directly (hence they can't do you under the new laws) but it IS clear you can't answer yes to point 5, so they can void under that provision.

How that's displayed if you go through CTM is a different matter (I believe, just before you confirm and buy) - there are high profile instances of aggregators not 'mapping' questions and answers properly, so be very careful to check your entire quote (whoever you go with)

You CAN get insurance from other providers when Bankrupt - e.g. EUI Group (Admiral, Elephant, Diamond). They say they don't take it into account AND as they didn't ask I didn't need to tell them (phone and ask, I've got a recording).

So, TL: DR - No you can't with Tesco. Yes you can with others. Check VERY carefully.

Slightly Off topic... but:

* Nearly all providers do credit search you, allegedly only for 'fraud and identity purposes' if you don't want to pay monthly.

However... I have had loads of insurers that can't quote me... but can quote a Mr Gwerusdn Gtkensuwe that lives at my address (with otherwise identical details).

Thus assumption clearly being they do use Credit Scoring even when they say they don't, and either the call centre & complaints agents aren't properly trained or are lying.

Similarly, I was lucky with Admiral last year - I moved house on the same day I bought my car - put my New address in. There was no credit record for me, so I came back effectively as a 'null' result for ER. Hence cheap price (and legal, as I told the truth - if they don't investigate a null ER result that's their problem). When I put my old address in (a similar or slightly lower risk area) to then adjust later, my starting premium was £400 higher.

Renewal Admiral have just whacked my premium up over £200 year on year, despite NCD, as they obviously now have that credit link to find my BR data. A complaint is underway with FOS regarding their persistent lying that they don't use credit rating....

shortyJJ

Ok I have just looked at the link and can see what you mean - but just to clarify so I know I've got it right...

I will be discharged from bankruptcy on the 5th july 2018- and for a further 5 years it will remain on my credit file.
so when answering question 5, am i still bankrupt?even though discharged it's still bankrupt ?
sorry for the questions

[Deleted User]

You aren't bankrupt once you've been discharged, but your answer will always depend on the exact wording of the question.

E.g. "You have been declared bankrupt......"

You have been declared bankrupt. That is always going to be the case, even after discharge and even after your files are wiped, so the legitimate answer to that would always be Yes.

Some lenders will ask if you are currently bankrupt - my take of that is that you answer yes if you haven't been discharged yet (e.g. 1 year, or the few people that have discharge suspended for not cooperating).

Others (mostly mortgage related) will ask if you are currently bankrupt or have restrictions imposed - I'd take that as the above (1 year) UNLESS you have a BRO/BRU at which point it would be on expiry of the BRO (which may be before or after the main BR is wiped from your file) - and so the answer would again be yes until BRO/BRU is over.

Others will ask if you have been declared bankrupt in last 3/6 years - simple, X years from bankruptcy date

A lot of mortgage lenders state bankruptcy in force during the past 6 years - which effectively is 7 years from granting of BR. In force is up to discharge date.



It shows just how much it does need clarifying, particularly in regards to insurances.

In lending you'll get an angry letter and the facility withdrawn. That may lead to costs (e.g. wasted property valuations) but is unlikely to go any further (e.g. CIFAS or prosecution) unless you've clearly deliberately deceived.

In regards to insurances, the consequences of being uninsured after an insurer voids your policy can have massive financial and legal implications.

System

shortyJJ wrote: »

I will be discharged from bankruptcy on the 5th july 2018- and for a further 5 years it will remain on my credit file.
so when answering question 5, am i still bankrupt?even though discharged it's still bankrupt ?
sorry for the questions

The question on the forms is "Have you ever been declared bankrupt?", not "Are you bankrupt?" and you have so the answer to that question is yes for the next 6 years.

shortyJJ

This is the exact wording;
Can you agree to ALL of these statements:

#5. 'You have not been declared bankrupt or have any unsatisfied court judgements (ccjs)?'


Even after discharged... i still cant say im not bankrupt, yes?

TheGardener

Tarambor wrote: »

The question on the forms is "Have you ever been declared bankrupt?", not "Are you bankrupt?" and you have so the answer to that question is yes for the next 6 years.

If the question is "have you ever been BR...?" then the answer is yes - - the answer to this will always be 'yes' whether its 6 months or 160 years ago

If the question is "are you BR?" then its 'yes' if undischarged, 'no' if discharged'.

If the question is "you have not been declared bankrupt?" is a bit more ambiguous but I would go with 'no' on this one as (to me) it sounds like the implication is the question is asking about a current status.

I would just choose another company - I found The Co-op and Hastings great and I don't remember being asked by either because I was paying in full.

[Deleted User]

Surely you have "not been declared bankrupt" is the same as "ever been [declared] bankrupt"?

Can see it from both sides though, and I'm certain people do pick the wrong things and are just lucky (no crashes, or no detailed investigations) - it really does need clarifying.

More worryingly, Tesco will do a credit search AND STILL QUOTE (for those that blindly click through, or go through CTM etc) - so I'd be tempted to then argue the burden of proof does shift to them: if they successfully credit/ID checked and bankruptcy was on your file at the time of the check (especially if it's registered against you at current address) then liability firmly shifts to them to have rejected you based on that. As many other insurers do.

However, you'd be looking at going to FOS and hoping they rule in your favour. Failing that, a legal case... not cheap!

In the case of motoring, you'd probably only be in that situation after a claim and/or being stopped for no insurance etc, so have a pending prosecution against you! I doubt legal aid are going to get into whether the policy was wrongly sold or Tesco did due diligence (even if that is your, on the face of it valid, defence).

I'd run elsewhere to someone that clearly doesn't care too much - e.g EUI, and hope the price isn't sky high. For your own peace of mind, maybe get a recording of them confirming they don't care in terms of quoting (as I did for the previous 3 years)

How much are you looking at paying by the way? Mines £750 with a high excess (bought a separate excess protect policy for £40). Everyone else including EUI are quoting over £900 this year. 1 year NCB, 1 claim 2&1/2 years ago, age = 26-30, average town area. High on the face of it, but given everything I'm rather happy with £800 all in.

Out of curiosity, I've just gone through and been quoted £2,100 with the same details as above. 3x the cheapest, and double the average price of the rest

When I've changed my name to a fake name to see the difference, they've put that they can't quote - so presumably they don't quote for a blank ER/Credit search. Unlike Admiral et al.

That suggests they know about bankruptcy (price being high) but are allowing me to continue... which would make a mockery of their disclaimer 5....

Skippy13

I contacted Tesco recently to clarify the BR question and this is what they came back with:


You can still apply if you have been made bankrupt however, if the BR was discharged less than 3 years ago, or not discharged or has unsatisfied CCJs, you would only be able to make your payment in a single lump sum. If the BR was discharged more than 3 years ago we can still offer you installments.