Cancelled Van Insurance - Issued With DD Default Notice

levien66

Evening all,

Im after a bit of advice.

I had van insurance arranged through a broker.

On 10/10/19 I cancelled the policy and the relevant direct debit (which was due on the 15th). All good until yesterday when I received a default notice (from Premium Credit) stating that they couldn't claim the direct debit from my bank as I have cancelled it.

They now want 2 months premiums - in excess of £300 plus a default fee charge.

My argument is that I cancelled the policy with the broker, is it then incumbent on them to inform Premium Credit as when I spoke to them today they had no knowledge that Id cancelled the policy and as far as they were aware it was still active.

Your thoughts would be most welcome.

MTIA.

[Deleted User]

It's always a mistake to cancel a DD, as there may be premiums still owing.

You will need to complain to the broker if you think he has made a mistake and look to get him to reimburse you any costs if appropriate. But don't delay paying the insurer.

csgohan4

as above, you mis understood what a monthly payment for insurance is,


Your effectively paying more than if you paid it as a one lump annual sum and is effectively a high interest loan.


The fact you cancelled the policy means all your remaining balance is due .

mustiuc

True.
Cancelled my van insurance on 19th this month and the insurer asked for £65 fee and the lender (Creation) asked for the remained interest. Ended paying £157 to cancel the policy. Not happy but also not willing to pay £180/mth and not using it.
Never, ever cancel your DD. Let them settle by themselves or be cancelled by those who manage them.