Cancelled Car Insurance - A(crap)Choice, chargeback HELP

nomorecc

Hi There

Paid for my sisters car insurance (Achoice), long and short of it is that they cancelled it because she couldn't prove one years no claims discount even though she had given them proof but because she wasn't the main policy holder they would not accept this.

Therefore her £875 car insurance was cancelled and they gave (me) her a £570 refund for being insured for just...wait for it... one month!

Needless to say, I was not impressed and was told she had to wait 2 weeks for a refund, this didn't occur and thus I spoke to my bank as I stupidly paid by DB (section 75 I love you)... luckily chargeback has gone through and during the time they have also refunded us 570.

So we are now have the original amount back plus the verbally agreed refund charge.

The reason for the chargeback is that I felt the company might be fraudulent after then checking many POORRRRRRRR reviews and scamming like behaviour so told my bank and explained what happened.

My sister has now received an email and a letter saying that we owe them the full £875 and if we don't pay they'll send debt collectors and basically put a mark against her credit file.

Can someone please urgently advise us what to do?

Points to note:
- we paid for the insurance, in full for the year via debit card.
- This is her first car insurance policy with her as the sole driver, she is currently now with admiral with me on a multi car discount both separate policies but the same.
-We did not apply for credit with them?!

Can they do anything and if so... what?

What rights etc do I have?! /. What should we do?!

HELP

THANK YOU!!:mad:

Asghar

nomorecc wrote: »

they cancelled it because she couldn't prove one years no claims discount even though she had given them proof but because she wasn't the main policy holder they would not accept this.

I thought only the policy holder could use their NCB from a previous policy.

Their actions appear to be correct, or have I missed something?

Zorillo

Am I missing something or is this a joke? You've received £875 + £570 back, the insurance company has received nothing and are out of pocket for both the time on risk charge (£295) and the £570 refund.

You very clearly owe them £875. By all means dispute the time on risk charge but I'd pay them the £570 back immediately as you'll end up with a county court judgement against you at this rate.

What makes you think you're entitled to the charge back and the refund?

alewin

nomorecc wrote: »

What rights etc do I have?! /. What should we do?!

You have the right to pay them back the £875 that you charged back or else she will be in trouble and her credit file damaged.

PixelPound

You owe the £875. Car insurances are for 12 months if you look at the T&C they tells you what happens if its cancelled. I would assume you get a percentage back.

Were you a driver too? Did you realise you would be the main policy holder

nomorecc

I was not part of the policy.

Time on risk charge well, yes however, I don't fee that 275 is a reasonable charge.

Perhaps I'll just pay the 875 back and forget about it or is there some other caveat or way around this?

I appreciate all of your responses thank you.

Zorillo

Caveat or way around what? You've got their money!

Quentin

They will very likely pursue the full amount. Think county court if you refuse to pay



When bank's refund you like this they do point out that should you be claiming in error the merchant has the right to take legal action against you to get their money

What proof of NCD did she have to give them? Proper NCD is only awarded to policyholders, not named drivers!


She must notify admiral that her previous policy was cancelled by the insurer urgently!!


These cancellations go on a shared database and if they find out when checking her out (eg after a claim) then they will have the right to void her policy and reject the claim - should the claim come from a third party they will look to her to reimburse them (think bankruptcy should she cause life changing injuries!)

dacouch

Your problem is that the no claims bonus you provided was not in her name (So unless they pre agreed to accept this) so they will be basing the premium they calculate the refund on the gross premium. This is the premium without any no claims discount and could easily be annually £1400 instead of the £875.

You then have a cancellation charge and associated charges.

I would recommend you ask them for a break down of all charges and the time on risk premium. This will enable you to check what has been charged

csgohan4

OP you need to read the terms and conditions, you should pay back what they are owed or CCJ will look bad for your sister,


Why do you think it was a scam? she couldn't prove her NCD

dunstonh

Therefore her £875 car insurance was cancelled and they gave (me) her a £570 refund for being insured for just...wait for it... one month!

What is the problem with that? It is recognised, including by the regulator, that the costs are borne at the start of a policy. Therefore cancellation terms can be weighted to be higher at the front end rather than the back end of the policy term.

Needless to say, I was not impressed and was told she had to wait 2 weeks for a refund, this didn't occur and thus I spoke to my bank as I stupidly paid by DB (section 75 I love you)... luckily chargeback has gone through and during the time they have also refunded us 570.

This often happens when S75 claims (or with direct debit guarantee claims). It creates a debt that is owed by the policyholder and they will ask for the money back and will follow through on that.

My sister has now received an email and a letter saying that we owe them the full £875 and if we don't pay they'll send debt collectors and basically put a mark against her credit file.

Which is logical in this situation.

Can someone please urgently advise us what to do?

Pay them the money owed.

-We did not apply for credit with them?!

They can still register a debt against you.

Can they do anything and if so... what?

yes they can. Small claims court and request a CCJ which will damage her credit file.

What rights etc do I have?! /. What should we do?!

Why are you asking about your rights? You have money that is not yours. Pay the bill.