Is the default I’ve been issued valid?

Penguin6666

Really annoyed that I’ve just received a default notice that will affect my mortgage application.

I applied for life insurance, got accepted and then they said they would send documents through. Document came through, one from the insurance provider saying my policy is live from X date. Another from the broker saying I need to sign credit agreement to set up the finance with another party who where the finance providers.

I decided that I didn’t want to proceed so I didn’t sign credit agreement and then I received another letter saying I was in arrears as missed last months
payment. I thought I would ring but past my mind and that was that. 2 months later I have a default notice from the insurance company stating my DD failed. I don’t have a credit agreement or DD that I’ve actauuly signed as they said in the letter if I didn’t sign it my policy would be cancelled which is what I wanted. So despite not wanting it and there’s for not signing it, I have a £40 default issues to me? Is this right? I think no because I have not signed anything, but then I’ve had a service for 3 months? Any advice appreciated!

[Deleted User]

Yes, it's valid. The policy was set up but you didn't make any payments towards it, either through the finance or directly.

If you didn't want the policy, you needed to cancel it.

Penguin6666

Thanks, interesting that step change and CA think different but I’m unsure as I see it both ways. The only thing that I see in my favour is it states I broke a credit agreement but did not have one; it stated I missed direct debits but never signed a DD so not sure how this will turn out.

[Deleted User]

Yes it’s correct.
You failed to make your statutory payments do they defaulted you

bris

You only cancelled the payment method, you didn't cancel the policy. The first time the insurers would know there was a problem is when the payment failed.
The default is correct, there will probably also be default charges to your account now too.

Kentish_Dave

I agree with the above, the default is correct as you were insured but decided to not pay for it.

This is the sort of attitude to contracts that lenders will of course want to take into account before they lend to you. I’d recommend settling the default ASAP and then being more careful in future.