What happens in this scenario

Greg89

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 

El_Torro

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

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

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.

MorningcoffeeIV

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

Thank you everyone 

Greg89

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

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

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