Missed house insurance payment - will it affect my credit score?

Mr_Spoon

My house insurance comes straight off my debit card each month. The bank sent me out a new card recently as my old one expired, which meant that my insurance payment bounced (I forgot to update the details with them). They notified me, I paid it the same day (plus a £20 fee) and gave them the details of the new card for future payments. All sorted. 

However, will this default appear on my credit record? 

sourcrates

Well you tell us, does your home insurer report to your credit file ?
Mine doesn't, if it was paid the same day then it wasn`t late was it.

Mr_Spoon

sourcrates said:

Well you tell us, does your home insurer report to your credit file ?
Mine doesn't, if it was paid the same day then it wasn`t late was it.

Don't know if they do or not (Dial Direct), but I just mean in general terms would most companies immediately report a missed payment or is there usually a grace period that's given to resolve the payment before reporting it. They sent out a notice of arrears letter (even though it's been paid I believe they still have to send this) with sections of the credit agreement quoted etc. This is what made me think about credit record implications. 

[Deleted User]

Mr_Spoon said:

sourcrates said:

Well you tell us, does your home insurer report to your credit file ?
Mine doesn't, if it was paid the same day then it wasn`t late was it.

Don't know if they do or not (Dial Direct), but I just mean in general terms would most companies immediately report a missed payment or is there usually a grace period that's given to resolve the payment before reporting it. They sent out a notice of arrears letter (even though it's been paid I believe they still have to send this) with sections of the credit agreement quoted etc. This is what made me think about credit record implications. 

Check your credit report, see if they already report to it

There is no general terms, every firm has their own policy, even if 99/100 firms didn't the 1 that does isn't doing anything wrong

Give it a month and see if it appears on any of the 3 CRAs, if it does, contact them and ask them nicely, given you paid same day etc, if they will remove it. Why not pay by direct debit rather than debit card though?

Mr_Spoon

Deleted_User said:

Mr_Spoon said:

sourcrates said:

Well you tell us, does your home insurer report to your credit file ?
Mine doesn't, if it was paid the same day then it wasn`t late was it.

Don't know if they do or not (Dial Direct), but I just mean in general terms would most companies immediately report a missed payment or is there usually a grace period that's given to resolve the payment before reporting it. They sent out a notice of arrears letter (even though it's been paid I believe they still have to send this) with sections of the credit agreement quoted etc. This is what made me think about credit record implications. 

Check your credit report, see if they already report to it

There is no general terms, every firm has their own policy, even if 99/100 firms didn't the 1 that does isn't doing anything wrong

Give it a month and see if it appears on any of the 3 CRAs, if it does, contact them and ask them nicely, given you paid same day etc, if they will remove it. Why not pay by direct debit rather than debit card though?

It was just laziness. I had to make the up-front first payment using a debit card when I took out the policy and it asked me if I wanted to make future payments using the same card. Seemed harmless at the time! 

sourcrates

Say for example your payment is due on the 20th of the month, the payment method fails, but you pay manually the same day, then the payment is not late is it, not if its paid the same day, in the same 24 hours, there will be no issue.

macman

You don't have a credit score, you have a credit history. Even if it does appear, one slightly late payment for £20 is not going to have any meaningful negative effect.

Mr_Spoon

sourcrates said:

Say for example your payment is due on the 20th of the month, the payment method fails, but you pay manually the same day, then the payment is not late is it, not if its paid the same day, in the same 24 hours, there will be no issue.

I didn't say it was a late payment, they've classed it as a 'missed' payment. Not sure if that makes a difference. 

sourcrates

Mr_Spoon said:

sourcrates said:

Say for example your payment is due on the 20th of the month, the payment method fails, but you pay manually the same day, then the payment is not late is it, not if its paid the same day, in the same 24 hours, there will be no issue.

I didn't say it was a late payment, they've classed it as a 'missed' payment.

Well they are just been "computer says awkward" aren't they, check your credit file, if they don`t report to it, then its not a problem.

Jamesyb123

Is this buildings insurance or contents or both? I was under the impression with insurance that if you stopped paying your insurance cover just stops similar to monthly car insurance. The reason I ask is that they have charged you a late fee of £20? That seems unreasonable and I would query that given u paid it the same day

Mr_Spoon

Jamesyb123 said:

Is this buildings insurance or contents or both? I was under the impression with insurance that if you stopped paying your insurance cover just stops similar to monthly car insurance. The reason I ask is that they have charged you a late fee of £20? That seems unreasonable and I would query that given u paid it the same day

Contents only. When you opt to pay it monthly it becomes a credit agreement ie a finance company pay the insurers the full amount and then you pay the finance company back with a little bit of interest. That's how most insurance policies seem to work these days. The £20 is just a standard fee for a missed payment, as per their T&Cs. Was my own fault, but I just hate the thought of getting a default on my credit record for something daft like this.