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?

razor111

how much are we talking about?

£898.17 which includes their current admin fee of £25 to pursue me for monies I don't owe them. They are saying that more fees will apply including court costs until such time as they have been paid in full.

razor111

assuming they have your current address

They have my address but I'm rarely there at this time of year. Would the court serve me with an email so that I know what's going on? Would the court allow me to present my side of the case before issuing a CCJ against me? If I have to come back to the UK to attend court who pays my travel costs?

Could their aggressive stance be construed as harassment and/or blackmail? 

Paul_01

It's not harassment or blackmail.

If you have provided evidence to the insurance company that the money has been refunded, you have done all you can for now.

If they do start court action, you can request that the matter be dealt with at your local county court and after providing evidence that your credit card company has repaid the money to the insurance company, the judge will throw out the case.

My guess is that someone at the insurance company will see sense well before that happens.

dumpster_fire2025

Paul_01 said:

It's not harassment or blackmail.

If you have provided evidence to the insurance company that the money has been refunded, you have done all you can for now.

If they do start court action, you can request that the matter be dealt with at your local county court and after providing evidence that your credit card company has repaid the money to the insurance company, the judge will throw out the case.

My guess is that someone at the insurance company will see sense well before that happens.

Unless the OP can provide evidence of a refund then no, it won't be thrown out. The money could have been lost in the banking system (it happens) and it is not the responsibility of the recipient to chase this. It is entirely up to the OP to refund the insurance company and then, if needs be, reclaim this from the CC company.

born_again

dumpster_fire2025 said:

Paul_01 said:

It's not harassment or blackmail.

If you have provided evidence to the insurance company that the money has been refunded, you have done all you can for now.

If they do start court action, you can request that the matter be dealt with at your local county court and after providing evidence that your credit card company has repaid the money to the insurance company, the judge will throw out the case.

My guess is that someone at the insurance company will see sense well before that happens.

Unless the OP can provide evidence of a refund then no, it won't be thrown out. The money could have been lost in the banking system (it happens) and it is not the responsibility of the recipient to chase this. It is entirely up to the OP to refund the insurance company and then, if needs be, reclaim this from the CC company.

If the CC picked up a refund after a chargeback & bounced it back to the ins co. It is more likely stuck in ins co's accounts.
It could also be in the banks internal account. In case the ins co rejects the chargeback within the 45 days they have to do so.

While the OP said they cancelled within the 14 days. They have not mentioned if this before the policy started or after?

razor111

They have not mentioned if this before the policy started or after?

Before the policy start date.

gt94sss2

I would lodge a formal complaint with the insurance company. This means that someone else is likely to investigate the case and make an effort to find the missing funds.

It also starts the clock ticking on your ability to take it to a Ombudsman if needed. 

I would not pay the insurance company in the meantime.