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

onlyfoolsandparking

ariyanxh said:

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?

Well you might not have wanted the hassle but as your now finding out that was a very bad decision on your part. I would be seeking some serious legal advice now from a top motoring Lawyer if I were you. A potential £50K liability coming your way could have some severe consequences on your future.    

Sea_Shell

Sorry, but I'm struggling with the timeline here...

Did they void your original policy from inception just because you hadn't returned the claim forms within 14 days?

Did they never chase you or remind you about the forms being needed?

Doesn't a void from inception mean that they have to refund all premiums too?  Surely they can't accept money and also void!?

What would they have done if you'd been hospitalised in the accident and were unable to meet their deadline?

All seems very strange.

ariyanxh

Sea_Shell said:

Sorry, but I'm struggling with the timeline here...

Did they void your original policy from inception just because you hadn't returned the claim forms within 14 days?

Did they never chase you or remind you about the forms being needed?

Doesn't a void from inception mean that they have to refund all premiums too?  Surely they can't accept money and also void!?

What would they have done if you'd been hospitalised in the accident and were unable to meet their deadline?

All seems very strange.

Yea that’s exactly what happened. They cancelled my policy because I “had not returned” the forms within 14 days. No reminders no warnings nothing. Just voided. They carried on taking money from me as well after they voided my policy. 

I’m going to seek legal advice. 

Sea_Shell

Why did you choose to insure with them again in 2020?  

I'd have thought you'd not touch them with a bargepole after that.

ariyanxh

Sea_Shell said:

Why did you choose to insure with them again in 2020?  

I'd have thought you'd not touch them with a bargepole after that.

The only one I could afford. 

Sandtree

ariyanxh said:

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?

The sensible first approach, given the cost you are facing, is to try and reopen the original complaint and/or make a new complaint that they didn't make it clear the consequences of the cancellation and had they you would have disputed it harder. They may argue you are out of time to raise such a complaint but at the end of the day you may as well exhaust every option you've got to avoid a £51k bill.

If they stick to the no on the complaint then you could attempt the ombudsman but the insurer can attempt to shortcut that by issuing court proceedings over the debt recovery... the FOS are likely to see it as one and the same thing and so bow to the court's authority being higher. 

Herzlos

ariyanxh said:

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 ?

Talk to a lawyer and co-operate with everything else that happens no matter how tedious it seems.

Be prepared to settle with them at court with some kind of payment plan.

Sea_Shell

Please keep us updated with how you get on.   So many threads get left hanging without resolution.

sheramber

Sea_Shell said:

 ?

Doesn't a void from inception mean that they have to refund all premiums too?  Surely they can't accept money and also void!?

 

I think the policy money has been set off against the outstanding charge.

Sea_Shell

sheramber said:

Sea_Shell said:

 ?

Doesn't a void from inception mean that they have to refund all premiums too?  Surely they can't accept money and also void!?

 

I think the policy money has been set off against the outstanding charge.

So it has.  Sorry missed that.

So they have effectively "refunded" the annual premium, but have just knocked it off the balance owed.


Voiding just seems so extreme in the situation described, without any warning, chasers or other communication!?! 

The ombudsman would have been all over it, had it been pursued at the time, surely.

OP are you sure the claim forms were the reason, rather than a non disclosure of a material fact?



ETA - was your vehicle inspected by your insurers or a recommended repairer before your policy was voided?  Where was it recovered to after the accident?

Have they spotted something non standard on it?

Was it standard model spec?