Insurance company forgot to take my direct debit over a year ago

moneydogtree

My insurer forgot to take a direct debit for insurance that is now cancelled.  They thought a credit company was taking it but their financial audit has found that many payments were not taken (including mine).  The insurance was not renewed and six months later they are asking me for the money ? 

Is that my fault ? Do I need to pay ? They had over a year to say it wasnt being take and its a business process issue on their behalf 

Nasqueron

In answer to your questions

No
Yes
Doesn't matter - you owe them the money and they have up to 6 years to get it

DullGreyGuy

moneydogtree said:

My insurer forgot to take a direct debit for insurance that is now cancelled.  They thought a credit company was taking it but their financial audit has found that many payments were not taken (including mine).  The insurance was not renewed and six months later they are asking me for the money ? 

Is that my fault ? Do I need to pay ? They had over a year to say it wasnt being take and its a business process issue on their behalf 

Yes you need to pay, unless you want the insurance retrospectively voided which you'll then have to declare that for the rest of your life for any other insurance you'll ever buy. 

The law of limitations is 6 years for a simple contract breach so if they've highlighted it a year later they are well within the bounds. 

I'm sure if their audit had discovered they'd taken double payments you wouldn't be asking these questions and would be expecting them to return the over payments!