Credit agreement withdrawal for insurance premium

ac2820

Hi there,

I've recently taken out home+contents insurance through Uinsure, and opted to pay monthly for this. I was advised payment would be taken through Close Brothers but naively didn't realise that I would be taking out full blown credit/finance like this. 

Anyway the long and short is, I want to now withdraw from my credit agreement, but keep the insurance policy in place and instead just pay the year up. (still within 14 days of signing credit agreement)

I'm going to give them a call when I get chance today, but I just want to understand how this could work going forward and any potential risks of doing this. 

If I withdraw from my credit agreement with CB, will there be anything owed to them? OR will they take any money already paid to Uinsure back and I will then go to Uinsure to pay the balance in full?

A bit lost and want to make sure i'm doing things right to avoid any headaches.

Thank you,

DullGreyGuy

ac2820 said:

I've recently taken out home+contents insurance through Uinsure, and opted to pay monthly for this. I was advised payment would be taken through Close Brothers but naively didn't realise that I would be taking out full blown credit/finance like this. 

Anyway the long and short is, I want to now withdraw from my credit agreement, but keep the insurance policy in place and instead just pay the year up. (still within 14 days of signing credit agreement)

I'm going to give them a call when I get chance today, but I just want to understand how this could work going forward and any potential risks of doing this. 

If I withdraw from my credit agreement with CB, will there be anything owed to them? OR will they take any money already paid to Uinsure back and I will then go to Uinsure to pay the balance in full?

A bit lost and want to make sure i'm doing things right to avoid any headaches.

Home insurance is a 12 month contract irrespective how you pay. If you cannot afford to pay it in one then you need a loan to spread the costs. For bigger companies they can afford to loan you the money themselves and manage the process but for some smaller companies or those that just dont want to have to be bothered with dealing with the Consumer Credit Act etc they will use a third party company like Close Brothers or Premium Credit. 

Even if the lending is done by the seller themselves some will do full credit checks before deciding if they want to loan you the money. 

Firstly, cancelling the loan won't change that the check was done so not sure what you are hoping to achieve?

Secondly, in the first instance call the broker, it may or may not be possible to change the policy from instalments to single payment and if its not then cancelling the policy may incur fees 

ac2820

DullGreyGuy said:

ac2820 said:

I've recently taken out home+contents insurance through Uinsure, and opted to pay monthly for this. I was advised payment would be taken through Close Brothers but naively didn't realise that I would be taking out full blown credit/finance like this. 

Anyway the long and short is, I want to now withdraw from my credit agreement, but keep the insurance policy in place and instead just pay the year up. (still within 14 days of signing credit agreement)

I'm going to give them a call when I get chance today, but I just want to understand how this could work going forward and any potential risks of doing this. 

If I withdraw from my credit agreement with CB, will there be anything owed to them? OR will they take any money already paid to Uinsure back and I will then go to Uinsure to pay the balance in full?

A bit lost and want to make sure i'm doing things right to avoid any headaches.

Home insurance is a 12 month contract irrespective how you pay. If you cannot afford to pay it in one then you need a loan to spread the costs. For bigger companies they can afford to loan you the money themselves and manage the process but for some smaller companies or those that just dont want to have to be bothered with dealing with the Consumer Credit Act etc they will use a third party company like Close Brothers or Premium Credit. 

Even if the lending is done by the seller themselves some will do full credit checks before deciding if they want to loan you the money. 

Firstly, cancelling the loan won't change that the check was done so not sure what you are hoping to achieve?

Secondly, in the first instance call the broker, it may or may not be possible to change the policy from instalments to single payment and if its not then cancelling the policy may incur fees 

Thanks, it's more that I just don't want to deal with Close Brothers

I can afford to pay the policy up front, and don't want to cancel the policy I just simply want to withdraw from my credit agreement and instead pay up front to the broker