URGENT! Help needed please....

moneysavexpert1986

...I took out car insurance with Norwich Union, and chose to pay monthly, so got put on their finance plan, with Premium Credit while I applied for an interest free credit card. I've got the card now, so I rang them up this morning to pay it before the first payment because it states in the terms and conditions that you will be charged no interest if you do this. The first payment is due tomorrow, so they said they can't let me pay it off becuase they have already applied for the first DD and they cannot cancel it, and said to ring the bank. I did this, apparently I'm not set up for telephone banking, so I have to go into the bank to do it, and it probably won't cancel in time anyway because it takes 2 working days. Even if it does cancel in time, Premium Credit will charge me A. Interest for paying it off after the first payment is due, and B. a charge for a bounced payment. Obviously this is wrong - what should I do?

Thanks

CLAPTON

DD are always sent several days before the due date... often 5 working days are quoted so they are acting quite reasonably.

In your situation I would let the DD come out of your account and put it down to experience. Otherwise you will end up with bounced DDs, arguments with the insurance co and your bank and lots of hassle.

lisyloo

Why do you think it's wrong?
You must have given them bank details and signed a direct debit mandate in order for them to do this i.e. you agreed to it.

They shouldn't charge you interest if you pay it off on time, but certainly if you agreed to pay by DD and then they incurr costs because you changed your mind then they are entitled to charge you fees if they were specified and agreed in your terms and conditions.

I'm sure if you'd done this with plenty of time then it would have been OK, but doing it at the last minute means that they wil incrr costs simply because you've changed your mind. Why should they do this?

If you didn't want to pay by DD then why did ou agree to in the first place?

moneysavexpert1986

It says in my original post why I agreed to pay DDs, and I wasn't told of their 37% interest before agreeing to it. It's wrong because it states in the terms and conditions that you will incur no interests if you pay it before the first payment is due. Nowhere does it say 5 days before. It says you can pay it off any any time.

CLAPTON

Without seeing the exact T&Cs its a little difficult to add much but if its as clear as you say I would suggest you trying phoning again and if that doesn't work made a formal complaint and say you will take it to the insurance ombudsman.

moneysavexpert1986

CLAPTON wrote: »

Without seeing the exact T&Cs its a little difficult to add much but if its as clear as you say I would suggest you trying phoning again and if that doesn't work made a formal complaint and say you will take it to the insurance ombudsman.

Cheers Clapton

lisyloo

and I wasn't told of their 37% interest before agreeing to it

You certainly should have been told about interest rates and fees and charges before signing up.

Are you sure you weren't "told" this. By "told" I mean was it presented to you in the paperwork you were give, it doesn't necessary have to be verbally presented, you are meant to read the documents before signing.
I understand that's it's not pratical to read entire volumes of paperwork but there should be a summary box that's pretty clear about interest and charges.
If you weren't given the information then you definitely have grounds for a complaint.

Nowhere does it say 5 days before.

It may not explain the working of the banking system, but many forms of payment require clearance and do not work instantly.
For example if you put a cheque in the post you need to allow for postage time plus 4 working days for a cheque to clear.
I'm not sure how much detail is usually gone into but it is your responsibility for payment to reach them by the payment date (not to put it in the post on that day).
I'm not sure how long credit card payments take (I thought they were instant) but for direct debits the caliming bank has to start processing the request 5 days before.

I'm not sure exactly what they said to you but if you pay on time (allowaing for clearance) then they should charge no interest.
It's DD's that need to start proceesing 5 days beforehand not credit cards.
I think they were probably just warning you that you would have to pay interest if it was late but obviously I didn't hear the conversation.

I still think they are withing their rights to charge you a fee for a bounced payment IF it's in the documentation.
If it's not in the documentation then they shouldn't and you would have grounds for a complaint.
So it all comes down to what you agreed.

Putting in a formal complaint is free and at the end you can go to the ombudsman but it can take any months.

Personally I would let the first DD go through and then try to set up something different, as even if you win it could be a long time getting your money back.

moneysavexpert1986

Thanks for the advice Lisyloo

lisyloo wrote: »

You certainly should have been told about interest rates and fees and charges before signing up.

Are you sure you weren't "told" this. By "told" I mean was it presented to you in the paperwork you were give, it doesn't necessary have to be verbally presented, you are meant to read the documents before signing.
I understand that's it's not pratical to read entire volumes of paperwork but there should be a summary box that's pretty clear about interest and charges.
If you weren't given the information then you definitely have grounds for a complaint.

- I definitely wasn't, I was told over the phone and agreed to it, they took a deposit and then they sent the forms in the post.

It may not explain the working of the banking system, but many forms of payment require clearance and do not work instantly.
For example if you put a cheque in the post you need to allow for postage time plus 4 working days for a cheque to clear.
I'm not sure how much detail is usually gone into but it is your responsibility for payment to reach them by the payment date (not to put it in the post on that day).
I'm not sure how long credit card payments take (I thought they were instant) but for direct debits the caliming bank has to start processing the request 5 days before.

I'm not sure exactly what they said to you but if you pay on time (allowaing for clearance) then they should charge no interest.
It's DD's that need to start proceesing 5 days beforehand not credit cards.
I think they were probably just warning you that you would have to pay interest if it was late but obviously I didn't hear the conversation.

I still think they are withing their rights to charge you a fee for a bounced payment IF it's in the documentation.
If it's not in the documentation then they shouldn't and you would have grounds for a complaint.
So it all comes down to what you agreed.

Putting in a formal complaint is free and at the end you can go to the ombudsman but it can take any months.

Personally I would let the first DD go through and then try to set up something different, as even if you win it could be a long time getting your money back.

I'm going to let the first DD go through and then phone them any pay it off tomorrow. They are meant to be phoning me back today but not heard a word yet.