House Insurance Scam

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/comment/81973555#Comment_81973555

To which charity should I send the £10?

eddddy

Just_landed said

It was a scam I stand by what I said the sellers are conning people out of their hard earned money. I choose who I want to trade with when I want not when sellers tell me who I deal with. In that particular purchase there was no warning they would rip me off the second year, typical insurance con. Anyway I take it no one has an answer to my question.

Different people have different thoughts on this.

• Some people dislike auto renewal - as you do
• Other people like it - because it's a safety net. If you 'forget' to do anything about house insurance, your current insurance will automatically continue

But you really need to deal with this. It could be a massive problem for you.

• The insurance company won't take you to court over £50.

Instead, as mentioned previously, they might…

• Record a "Cancellation due to non-payment" on the CUE database. As it stands, that could mean problems getting insurance for anything with any insurance company for the rest of your life.

• Record missed payments at the Credit Reference Agencies. That might make getting phone contracts, broadband contracts, credit cards etc more difficult for up to 6 years

Perhaps that seems like disproportionate 'punishment' for cancelling a card payment - but that's the way the insurance world works.

Grumpy_chap

I contacted my credit card and got the money back but then the insurance company contacted me saying I had defaulted and put a charge on my for about £50 which I told them I cannot wait to fight them in court

It sounds like your CC processed a chargeback. This is the equivalent of stopping a cheque. Both actions would mean you have not paid. Neither action would cancel the obligation to pay. The default has been recorded correctly.

Did you contact the insurance company to cancel before initiating the chargeback?

dannim12345

I don’t like auto renew but I get it, you forget to renew, miss the letter or lose track of the date and you are still covered.

I have had money taken for a renewal although I wanted to leave. It was just before the policy renewal date, I phoned them, cancelled and got my money back.