XSDirect saying I owe them £51,000 !!!!!

ariyanxh

Back in January 2018 I got into an accident which was my fault. I received forms to fill out to detail what had happened. I posted the forms back to XSDirect. They claimed they had not received the forms so they cancelled my policy as apparently I had not cooperated and sent them the forms back within 14 days.
They threatened to take me to court if I did not pay the remaining amount left of my policy. So I agreed to pay a small amount monthly via a debt collection company. I thought I had paid it off. Perhaps a small amount was left.

Fast forward to 2020 I took out insurance again with XSDirect. This time someone crashed into my car whilst it was parked. I wasn’t even at the vehicle. Once again they cancelled my policy and they were claiming it was because I owed them money from a previous policy. I emailed them and I called them about it and no one was giving me  any answers. My brokers (Complete Cover Group) and XSDirect kept fobbing me off to one another. 

Now I get this in the post!!!!!!!! Can they take me to court for this much??? I might only owe them a few hundred pounds which I can pay. If only they had asked me or sent me an email. No one said anytime for years!!!

Sandtree

ariyanxh said:

Back in January 2020 I got into an accident which was my fault. I received forms to fill out to detail what had happened. I posted the forms back to XSDirect. They claimed they had not received the forms so they cancelled my policy as apparently I had not cooperated and sent them the forms back within 14 days.

So yes, if the insurance was voided they would be obliged to deal with the third party as the RTA insurers of the vehicle at the time. They they have the right of recover of the third party losses from either a) the driver of the car at the time or b) the policyholder - this is outlined in the clause they have highlighted but the rights against the driver go beyond the policy wording.

I personally have seen much larger recoveries than £51,000 made against policyholders which normally ended with charge orders being placed on homes etc.

Did you not challenge/raise a complaint about the cancellation of the policy at the time? Did you even declare the cancellation when you took the next policy out?

ariyanxh

I challenged them yes but I didn’t take it further as I did not want the hassle. 

I didn’t declare I owed them money because I didn’t even realise. I genuinely thought it had been paid off. 

But surely they can’t just void a policy like that?my insurance was perfectly fine at the same of the accident. 

 Two weeks after an accident they can just claim they didn’t receive forms and cancel a policy?
And if so they can do that to anyone and they would never have to pay any third party damages?

Herzlos

They can void it if you don't co-operate, sadly.

As for the costs, £50k isn't unreasonable for a crash, and it seems like you've only paid them back £1495 of it so they are pursuing you for the rest.

With a void policy, they are entitled to seek all of their expenses back, not the policy value because you're not insured.

It's over the small claims limit so you're going to need a lawyer.Your best defense here is proving that you did send the forms back and they were being unreasonable by voiding the policy.

born_again

ariyanxh said:

Back in January 2020 I got into an accident which was my fault. I received forms to fill out to detail what had happened. I posted the forms back to XSDirect. They claimed they had not received the forms so they cancelled my policy as apparently I had not cooperated and sent them the forms back within 14 days.
They threatened to take me to court if I did not pay the remaining amount left of my policy. So I agreed to pay a small amount monthly via a debt collection company. I thought I had paid it off. Perhaps a small amount was left.

Fast forward to 2020 I took out insurance again with XSDirect. This time someone crashed into my car whilst it was parked. I wasn’t even at the vehicle. Once again they cancelled my policy and they were claiming it was because I owed them money from a previous policy. I emailed them and I called them about it and no one was giving me  any answers. My brokers (Complete Cover Group) and XSDirect kept fobbing me off to one another. 

Now I get this in the post!!!!!!!! Can they take me to court for this much??? I might only owe them a few hundred pounds which I can pay. If only they had asked me or sent me an email. No one said anytime for years!!!

Is this from the "At Fault" claim or the one where you parked car was hit?

You have put 2020 twice? Is that a typo?

Was your 1st insurance policy paid monthly?

ariyanxh

born_again said:

ariyanxh said:

Back in January 2020 I got into an accident which was my fault. I received forms to fill out to detail what had happened. I posted the forms back to XSDirect. They claimed they had not received the forms so they cancelled my policy as apparently I had not cooperated and sent them the forms back within 14 days.
They threatened to take me to court if I did not pay the remaining amount left of my policy. So I agreed to pay a small amount monthly via a debt collection company. I thought I had paid it off. Perhaps a small amount was left.

Fast forward to 2020 I took out insurance again with XSDirect. This time someone crashed into my car whilst it was parked. I wasn’t even at the vehicle. Once again they cancelled my policy and they were claiming it was because I owed them money from a previous policy. I emailed them and I called them about it and no one was giving me  any answers. My brokers (Complete Cover Group) and XSDirect kept fobbing me off to one another. 

Now I get this in the post!!!!!!!! Can they take me to court for this much??? I might only owe them a few hundred pounds which I can pay. If only they had asked me or sent me an email. No one said anytime for years!!!

Is this from the "At Fault" claim or the one where you parked car was hit?

You have put 2020 twice? Is that a typo?

Was your 1st insurance policy paid monthly?

It’s from the “At Fault” claim from 2018. Yeah it was paid monthly.

ariyanxh

Herzlos said:

They can void it if you don't co-operate, sadly.

As for the costs, £50k isn't unreasonable for a crash, and it seems like you've only paid them back £1495 of it so they are pursuing you for the rest.

With a void policy, they are entitled to seek all of their expenses back, not the policy value because you're not insured.

It's over the small claims limit so you're going to need a lawyer.Your best defense here is proving that you did send the forms back and they were being unreasonable by voiding the policy.

I did cooperate. I had proof of postage. But I don’t have receipts from 3 years ago. This is crazy. Is there any way out of this ?

GrumpyDil

So, assuming the invoice is in relation to the first claim you definately need to challenge the policy cancellation but I can't fathom out why you didn't challenge it when it happened, particularly as you were aware of a ongoing claim against you.

As regards the second policy cancellation did you include the fact that the previous policy had been cancelled when you took it out. If you didn't then that's a whole different discussion on top of dealing with the original cancellation. 

AdrianC

ariyanxh said:

I challenged them yes but I didn’t take it further as I did not want the hassle.

And there y'go, the "failure to co-operate" in one.

But surely they can’t just void a policy like that?

Yes, they can.

Two weeks after an accident they can just claim they didn’t receive forms and cancel a policy?
And if so they can do that to anyone and they would never have to pay any third party damages?

Only where there actually is a failure to co-operate.

You had an at-fault crash in Jan 2020.
You say you sent forms in.
They say you didn't.
You didn't bother with the hassle, paid them £1,500, and thought it had gone away...

Does £20k of damage to the other vehicle and £30k of personal injury sound more likely from that collision or from somebody hitting your car while it was parked?

ariyanxh

GrumpyDil said:

So, assuming the invoice is in relation to the first claim you definately need to challenge the policy cancellation but I can't fathom out why you didn't challenge it when it happened, particularly as you were aware of a ongoing claim against you.

As regards the second policy cancellation did you include the fact that the previous policy had been cancelled when you took it out. If you didn't then that's a whole different discussion on top of dealing with the original cancellation. 

I challenged them at the time. Only over the phone. They wouldn’t budge and only made threats saying they will take me to court. It was naive of me. I thought that the policy cancellation would be the end of it and I would have to pay up a larger premium. No warning that I would be liable for every penny. They knew what they were doing. Their every intention was to make me liable for every penny. 

I declared the policy cancellation before taking out the second policy. They were aware of it. 

So the only option now is to lawyer up?

ariyanxh

AdrianC said:

ariyanxh said:

I challenged them yes but I didn’t take it further as I did not want the hassle.

And there y'go, the "failure to co-operate" in one.

But surely they can’t just void a policy like that?

Yes, they can.

Two weeks after an accident they can just claim they didn’t receive forms and cancel a policy?
And if so they can do that to anyone and they would never have to pay any third party damages?

Only where there actually is a failure to co-operate.

You had an at-fault crash in Jan 2020.
You say you sent forms in.
They say you didn't.
You didn't bother with the hassle, paid them £1,500, and thought it had gone away...

Does £20k of damage to the other vehicle and £30k of personal injury sound more likely from that collision or from somebody hitting your car while it was parked?

Sorry it was a typo. I’ll try to amend it now. The 51k in damages is from 2018 when I was at fault.