Charged twice

leo.ge

Hello! I bought car insurance (using my debit card online) and later noticed that my bank account (Lloyds bank) was charged with £411 for this twice on the same date (28 Feb) with same amount and same reference. (I checked that both payments changed my balance accordingly). I called the insurance company and they said that they see just one payment, but they said it is called "ghost payment" and it takes 10 working days to settle. So it has not settled, I called my bank, they said they are opening "disputed trade" and they have instantly refunded one of the payments (i.e. £411) back to my account on 17th March. About two weeks later I got a letter from the car insurance that I owe money to them. When I called them, they said that on 27th March the bank charged them with £411, so they will cancel my car insurance, because they received £0 from me. But in my bank statement I don't see any payment on 27th March and nowhere else £411 was deposited into my account. I tried calling my bank, but I am waiting infinitely listening to some talking machines - perhaps this is because of coronavirus. What am I supposed to do? Altogether I've paid £411 for my car insurance, but the company says they cancel my insurance. Will be grateful for any advice...

afis1904

Have you checked if you have actually paid £411? It sounds like there was a duplicate transaction that wouldn't have cleared and the bank seems to have refunded the other transaction. If a transaction doesn't clear it wouldn't usually show up as a debit because the money has never been taken.

penners324

Does the other payment still show in your account or is it showing as pending?

leo.ge

Thanks for your response! I see that the balance of my account became £411+£411 = £822 less. I am not sure if it is counted "cleared" or not. Both the transactions show "DEB" (I assume it means "debit" and I see most of my transactions show "DEB").
Later I was refunded with £411. So altogether I paid £411+£411-£411=£411.
But insurance company claim altogether I paid them £0, i.e. they say they were charged £411 once and later again.
So I am wondering where did the money go and what I am supposed to do now?
Can i just count that I do have a valid car insurance? Do I need to go to court?

penners324

You need to check both transactions. Is one still showing as pending? If not then contact the insurance company with the transaction details. 

colsten

leo.ge said:

Can i just count that I do have a valid car insurance? Do I need to go to court?

You must not assume you have a valid insurance, particularly not after the insurer effectively told you that you don't have one because they think you have not paid.

You might have to take them to Court to get your £411 back but you should definitely arrange insurance cover elsewhere in the meantime.

born_again

The 2nd £411 will be sat with the insurance company.
Given you made to payments did you get 2 emails confirming payment?
It is possible that what you asked the bank to do has resulted in the payment the Ins could see being disputed. 

sassy_one

I've had transactions for two amounts before.
One is a pre auth other is a fully auth payment where the money is taken.

For example, you buy a dvd online, you fill in your details and then your card details.
Then click next, they verify these details will work and carry out any 3D secure verification. 
This checks you have the funds to place the order.

Then the last window shows you click to confirm the order.
Once this is done the money is either taken at that stage or just before dispatch. 

It's possible this has happened with your transaction.

Pending pre auth takes between 7 - 10 working days to normally reappear bank in the account.

badger09

sassy-one said:

I've had transactions for two amounts before.
One is a pre auth other is a fully auth payment where the money is taken.

For example, you buy a dvd online, you fill in your details and then your card details.
Then click next, they verify these details will work and carry out any 3D secure verification. 
This checks you have the funds to place the order.

Then the last window shows you click to confirm the order.
Once this is done the money is either taken at that stage or just before dispatch. 

It's possible this has happened with your transaction.

Pending pre auth takes between 7 - 10 working days to normally reappear bank in the account.

Unless it was taken by Princess Cruises who did not even start to release multiple pre auths until 31 days after they took the final balance from my  Starling account.
Apologies to OP for off topic

born_again

badger09 said:

Pending pre auth takes between 7 - 10 working days to normally reappear bank in the account.

Unless it was taken by Princess Cruises who did not even start to release multiple pre auths until 31 days after they took the final balance from my  Starling account.
Apologies to OP for off topic

Travel & tourism (inc Car Hire) is 32 days. Unlike the normal 14 day max.

badger09

born_again said:

badger09 said:

Pending pre auth takes between 7 - 10 working days to normally reappear bank in the account.

Unless it was taken by Princess Cruises who did not even start to release multiple pre auths until 31 days after they took the final balance from my  Starling account.
Apologies to OP for off topic

Travel & tourism (inc Car Hire) is 32 days. Unlike the normal 14 day max.

Interesting. Any idea why?