Can Admiral car insurance put a default on my credit report?

mattyprice4004

Wow, a thread bumped after a year to give terribly inaccurate advice. Well done!

flipmepoo

Clearly the last three posts on here have been presumptive statements based without fact, or without any direct experience in this field. Disappointing to note sarcastic comments without any foundation.
It`s OK, i can take sarky comments all day long having worked for several years for Mercedes-Benz Finance and others collecting these insurance debts- or at least trying to.
Unfortunately there are some people that think a debt is a debt, and that`s all there it too it.
Comparing this to a gym membership is irrelevant, as is the fact this post is a year old- as the rules have not changed since the last amendment to the consumer credit act.
Please review my last post. Yes, insurance companies are regulated, but most companies only by the insurance regulators, and are not authorised to sell a credit agreement for insurance under the consumer credit act. Dependent on the broker , or who is actually providing the loan, dictates whether or not a default can be registered. A notice of default , is a default regulated under the consumer credit act. If the company provided the loan is not registered under the act to provide credit, (governed by the FCA, check the specific company details on their website ) if they put a default on your credit file they are breaking the law. That does not mean they cannot apply for a ccj. If the lender does have a license (close brothers for example) then they can- its down to the purchaser to check. The original question was "can they default you for not paying insurance" the answer is legally- in some cases yes , but not all- however many do without acting within the law.
I have provided this information with direct industry experience and factual knowledge over the last 20 years so to say tread carefully is just boring to me in a forum environment, it is up to the debtor to decide whether or not they pay.
If anybody else comes across this, it can be verified with the credit reference agencies , the financial conduct authority ( Trainee bellends having had direct dealings with them, but do a great arnie impression) or the financial ombudsman office in London who are very helpful regarding this. 

JJ_Egan

<o the debtor to decide whether or not they pay

>Out of interest what usually happens if the debtor refuses to pay in these sort of cases .

flipmepoo

It depends on the circumstances on the above - the immediate effect at the moment is a default being registered - if the loan provider is regulated by the fca.
This is recognised as being unjust with the authorities and something they are looking to change , along with payment method penalties.
The aa for example, uses the same regulated company registered as "credit card provider" to provide insurance loans - a workaround for them, very shady- they need to be regulated by either consumer credit or insurance regulators - not both - this is how they get away with it.
Due to the volume of polices sold, it is not feasible for an insurance company to apply for  a ccj against a consumer , and is very unusual for a cancelled policy- its more common in the case of fraudulent claims or major accidents - by which time solicitors normally get involved.