What happens in this scenario

I've cancelled my car insurance last week which I had to pay a cancellation fee

I will also receive a refund and they said no payments taken 

Today which my direct debit goes out early every month, the monthly DD tried to come out 

Is the wrong? As I no longer have insurance and since no insurance, I don't need to pay for the full month or does it work as the payment today comes out to cover last month?

Is this an error on their behalf 

Comments

  • El_Torro
    El_Torro Posts: 1,764 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If you cancelled it on Friday last week then I doubt that would have given them enough time to cancel your Direct Debit. If it was Monday last week then they should have had enough time to cancel it, if necessary.

    Whether the payment was to cover last month or this month depends on the deal you initially made with the insurer. Either way it's probably worth giving them a ring to make sure no more payments are taken. Also to get a refund if necessary.
  • Greg89
    Greg89 Posts: 352 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    edited 4 September 2023 at 8:18PM
    El_Torro said:
    If you cancelled it on Friday last week then I doubt that would have given them enough time to cancel your Direct Debit. If it was Monday last week then they should have had enough time to cancel it, if necessary.

    Whether the payment was to cover last month or this month depends on the deal you initially made with the insurer. Either way it's probably worth giving them a ring to make sure no more payments are taken. Also to get a refund if necessary.
    On phoned on Thursday to cancel on Friday 

    I paid an up front cost for my insurance

    9 June upfront

    2 July 

    2 August 

    I think it's an error on their part and it covers the start of the month 


  • 400ixl
    400ixl Posts: 4,482 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Direct Debits can be in the system for up to 10 days prior to the date they execute, so cancelling on Thursday / Friday would likely mean that it would not have been cancelled in time. Contact the insurer to get it refunded or failing that your bank under the direct debit guarantee scheme.
  • Greg89 said:


    Is this an error on their behalf 

    No.

    There wasn't enough time to stop the DD. It'll be refunded to you.
  • Greg89
    Greg89 Posts: 352 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    Thank you everyone 
  • Greg89
    Greg89 Posts: 352 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    They also said I will get a refund which will take up to 7-10 working days 

    I told them if they had the right sort code and acc num
  • Greg89
    Greg89 Posts: 352 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    edited 12 September 2023 at 6:50PM
    They're saying that I still have to pay for September despite cancelling the insurance in August 

    I'm confused as above I written the dates which the DD comes out on the start of each month

    paid an up front cost for my insurance

    9 June upfront

    2 July 

    2 August 

    Unless the DD at the start of the month covers the last month which makes no sense as when I took it out, it covered from that date onwards

    I don't believe they should cut off part of the refund to cover the DD for September which I cancelled my insurance in August 
  • Greg89
    Greg89 Posts: 352 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    Unless the admin charge is the same as one month payment

    However they did say £409 after cancellation fee so that means they took it off 
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