Direct Line Refund

GeordieGal24

New here, hope this is in the right place.
Last week I had a text message from Direct Line saying my claim would be paid by BACS transfer in the next 3 -5 working days.

The text is 100% from Direct Line as I used to have a car insured with them, it was actually written off in December 2020 following an accident. I have the text messages going back to 2018 from them so am certain the message is from them.
At this point I didn't know that Direct Line are paying out to customers for overcharging on renewals and also for undervaluing vehicles when they were written off.

I'm no longer with Direct Line and the bank account I had when I was insured with them is now closed- it was a Tesco Bank current account and they pulled the plug on that aspect of their banking so I had no choice.

If a BACS payment is made to a closed account does it bounce back to the sender?
I'm guessing they would just then send a cheque?
The amount is just over £400 as per the text message so I'd really love yo get it!!!

Has anyone else had a payment from Direct Line or a message saying they will be getting one?

born_again

Did you switch (CASS) the Tesco bank account to another or just let it close down?

If switched, the payment will/should be directed to the new account.

Jaybee_16

https://www.thisismoney.co.uk/money/markets/article-12469139/Direct-Line-set-pay-30m-overcharged-customers-thanks-FCA-price-walking-

The London-listed firm, which owns the Churchill and Green Flag brands, also told investors on Friday that the probe was unconnected to a separate review regarding motor insurance loss claims.

In June, the business was ordered by the FCA to assess all losses on vehicles written off between 1 September 2017 and mid-August 2022 after admitting to underpaying some van and car customers.

Direct Line said it only expected to compensate a minority of customers and would contact those directly affected 'to apologise and provide appropriate redress, including interest.'

GeordieGal24

born_again said:

Did you switch (CASS) the Tesco bank account to another or just let it close down?

If switched, the payment will/should be directed to the new account.

I left Tesco completely and opened a Starling account.  

huckster

Suggest that you call Direct Line and find out the details of who to contact to ensure you receive the money. 

DullGreyGuy

GeordieGal24 said:

If a BACS payment is made to a closed account does it bounce back to the sender?
I'm guessing they would just then send a cheque?

Increasingly banks bounce them but traditionally the money would go into a suspense account at the bank branch and in theory they'd try and workout where it should have gone but in practice the money often just sat there for ages. Some banks are still on the more traditional side of life. 

Most likely they'd send a cheque if the payment bounces but they may write and ask for alternative bank details for another BACS 

GeordieGal24

DullGreyGuy said:

GeordieGal24 said:

If a BACS payment is made to a closed account does it bounce back to the sender?
I'm guessing they would just then send a cheque?

Increasingly banks bounce them but traditionally the money would go into a suspense account at the bank branch and in theory they'd try and workout where it should have gone but in practice the money often just sat there for ages. Some banks are still on the more traditional side of life. 

Most likely they'd send a cheque if the payment bounces but they may write and ask for alternative bank details for another BACS 

Phoned and eventually got through. Delighted to report its totally legitimate and I am getting over £400 as they undervalued my car when it was written off. Provided new bank details and I'll have it by the end of the week!!!!
Too early for a celebratory Prosecco?!

fineclaret

Found this after searching, as I just had a very similar situation. Text out of the blue advising forthcoming payment, definitely legit from DL, followed a few days later by an actual cheque. The accompanying letter said a detailed breakdown of claim would be sent separately, but I still have no idea what this is for, and assumed it was an administrative error. But I did put in a claim 4 years ago, and it was a write-off, so given your experience, maybe it really is my dosh!