Crediy Card Chargeback - Who is Liable?

razor111

An insurance company promised to refund my credit card after I cancelled an insurance policy within the 14 day cooling off. They didn't refund the money. Therefore, I spoke to my CC card company who arranged a chargeback. 4 weeks later the insurance company also refunded the money to my credit card account out of the blue. My credit card company spotted this and refunded the money to back to the insurance company. The insurance company are now pursuing me stating that my credit company haven't sent them the money back. My credit company say they have sent the money back. The insurance company are adamant that I owe them the money as their view is they have no control over what the bank does. The insurance company are threatening to take me to court. I haven't got any of their money. Am I liable? Should I pay the insurance company with my credit card and then fight it out with the credit card company?

Brie

My guess is that the insurance company has stated something like "if this matter isn't resolved we will consider passing this to our legal team who may consider court action" or something like that.  It's the sort of thing that a lot of companies do to sound tough and serious about needing action.

I wouldn't pay them anything.  I would write them a polite letter to state that you know that your bank paid £X back to them on Y date and they should check with their accounting team to resolve the matter. 

You might be able to assist by providing a payment reference that the bank used to pay the insurance company.  It might help to provide a snapshot of the relevant bits of your CC statement that show the refund being made - that might include the payment reference.   

razor111

Thank you Brie for your reply. I've already done what you've suggested including sending the insurance company copies of the relevant credit card statements which clearly show that the credit card company have made the necessary adjustment to my account. However, I appear to have a very over zealous individual at the insurance company who is adamant that because the insurance company cannot reconcile the money going to them from the credit card company then I'm personally liable. I have put it to him that this really is a matter for the insurance company to sort out with the credit card company, but he's having none of it. As far as he's concerned he's taking me to court unless I pay up and he's given me 14 days to do so. If the insurance company do initiate court action how will I know about it so that I can defend a CCJ being made against me? And Bailiffs?

eskbanker

razor111 said:

If the insurance company do initiate court action how will I know about it so that I can defend a CCJ being made against me?

If they went as far as that then you'd receive notification from the court (assuming they have your current address), but I'd have thought it unlikely they'd really pursue it - how much are we talking about?