Help - threatening letter from Premium Credit on behalf of Home Protect

Scarlett82

Hello all,

For quite a few years now we've had our buildings and contents insurance with Home Protect, we pay on a monthly basis. They hiked up the premiums something ridiculous and we've been too faithful for years so I cancelled the direct debit and started looking for new cover to start beginning of December.

I've had a letter from them saying that we need to either reinstate the DD or pay the balance of £520.80 and the default charge of £27.50 - the next payment to them isn't due until the 1st of December. They sent me paperwork to renew in September and then billed me a penalty for not signing the agreement, and now this. Do I have a leg to stand on, or do I have to wait until the 12 months is up before I cancel?
Please let me know what I can do, money is getting so tight these days and all I'm trying to do is reduce my bills, but instead I seem to be costing us more money!

Comms69

I'd guess that the insurance product is for 12 months, so really you should've cancelled back at renewal date.

agrinnall

They may allow you to cancel, but there will certainly be an admin charge and the pro-rata payment for time on cover may be more than you have already paid. Cancelling a DD almost never cancels the service that is being paid for.

Scarlett82

So even though I didn't sign for the cover to continue, they can still charge me for cancelling outside of the renewal date?

McKneff

Scarlett82 wrote: »

So even though I didn't sign for the cover to continue, they can still charge me for cancelling outside of the renewal date?

Its not outside the renewal date, you didnt cancel your next years insurance.
You will have signed for auto renewal at the inception of your policy

Cancelling the dd doez not cancel the insurance. You cant expect the bank to ley your car insurace know you want to cancel. You
Have to do this yourself.

kwame41

Re-read the post.

You have a credit agreement with Premium (who are lending you the cost of home protect cover) which your are in breach of because you cancelled the direct debit.

You should have contacted Home Protect and cancelled your cover as you have been auto renewed and have a new credit agreement to pay for it.

Pay what you owe to Premium (quickly) and then cancel your cover. Before the 1st.

Voyager2002

Most urgent of all: are you currently insured? Make sure you have some kind of cover before worrying about smaller issues.


Your home insurance may or may not have auto-renewed. Either way, you should have told the insurer that you were cancelling before a new year's cover began. You will need to pay them for any time when they have insured you, and whatever cancellation charge they levy. However, do not begin this until you have sorted out an alternative insurer.