Complicated - Me vs Bank & creditor

Shaun_the_Sheep

Hi,
Complicated issue, but basically I took out a car insurance policy in April 2007, was unhappy with service and cancelled with a few weeks (max). Insurance company reckoned I owed £123, which I was disputing. Last I heard from them was in August/September last year, threatening to take me to court. Fine, I thought, gives me a chance to challenge their allegations and show how incompetent they have been.

However, last week I had over £300 due to go out via direct debit to various bills, but none of these were honoured as a mysterious £123 went out of our account. Printout from bank could not tell us how payment was taken, so we asked them to investigate further. A week later we have been told that the creditor used my expired card details. We obviously challenged the bank about how they could allow this and was informed that whenever we give out our card details we are authorising payment at any time - nonsense as we were due to pay the policy premium via direct debit (as stated on the policy). Also there would be no point in having expiry dates if they were not honoured.

I contacted the creditor who basically told me to shove off as I owed the money. I have asked for transcripts of all conversations I have had with them to prove I had dispute with them in the first place, thus challenging the issue of owing money.

Bank washing their hands of it too.

In the meantime I have had to try to find the money to repay the bills that were refused, whilst wasting lots of time chasing everyone about the matter.

As a cashless society how are we going to use debit cards without anyone just helping themselves to our accounts without authorization?

Anyway, I just need to know where I stand legally on recouping the £123 taken without permission and how do I go about getting it back and from whom?

Your assistance would be greatly appreciated

dmg24

Did you cancel your insurance within the two week cooling off period?

Shaun_the_Sheep

I think so. My issue is more over how the company can help themselves to the money nearly a year later without any authorization and how my bank can allow such payment when an expired debit card was used.

When I took out the policy I was quoted an amount, shortly after they tried to double the premium saying I had not proved my 2yrs no claims, even though I had said I had ncb, which was clearly stated on the policy. Somehow they said the policy had been calculated on a mirror policy (which means nothing to me) and I explained there was no such thing on my documentation and therefore refused to double the premium and promptly cancelled the insurance. All happened over a short space of time, so think it was within the 2 weeks.

dmg24

Unfortunately, 'I think so' is not definite enough for the bank to take action.

When you agree to make a payment, it can be taken up to six years after that date (or even later in some circumstances). Therefore you need to make a complaint to your insurer, not the bank.

You need to make a written complaint to the insurer, and follow it through their complaints procedure.

Crabman

Surely a pro rata refund would be in order from the time you cancelled, what do the T&Cs say about any admin or charges for cancelling the car insurance policy? It's odd that you cancelled the policy but they still demanded the premium.

Are you sure the bank debit was made using the expired card? You mention a direct debit and this wouldn't normally expire unless you cancel it by informing the bank. If it was a direct debit, you're entitled to an immediate refund from your bank in the event of an error (if this counts as an error).

DaisyFlower

If you cancelled with 14 days you should have been in the cooling off period and not been charged. If you were outside this, then they are correct in charging short term rates (pro rata if it was a renewal) plus their standard admin charges.

You state a few weeks, you need to check the exact date. If you have proof it was within the 14 days then follow the complaints procedure set out by the insurer. If after 14 days then the money was due.

Shaun_the_Sheep

Let me clarify a couple of points - I took the policy out by paying a deposit via debit card, with future monthly payments to be made by direct debit (as stated on policy). I cancelled the policy and know they have used an expired debit card because my bank have confirmed this, plus I have a letter dated from last June stating that my card details had expired.

The issue for me therefore is not whether I owe the money, that is for me to wrangle with the insurance company, which I fully intended to do at court level (as they had said they were taking the matter down that route). Proof of owing the money has never been forthcoming from the company either, despite the fact I have asked for transcripts etc., as I feel I was mislead when sold the policy.

My issue is that the money was taken without any warning or authorization using a defunct card, having a knock on effect, especially as all future payments were due to be taken via direct debit (that was our agreement). For the bank to simply say that anyone you have given your card details to can help themselves to your money whenever they want is not good enough. As previously stated, in the cashless society we are becoming we have no choice but to use some form of plastic.

JohalaReewi

You paid the deposit by debit card (authorised) and the ins company took the balance by the same debit card over a year later (unauthorised). What does your bank say about reclaiming an unauthorised debit card payment (never mind that the card had expired, the actual transaction was not authorised).

This posting on a consumer website might help...
http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/102165-can-they-use-my.html

Shaun_the_Sheep

Many thanks for the link - at last people on my wavelength!!

The bank say it is down to the insurer to refund, although the bank also say that if you give your card details out then payments can be taken at any time. However, after reading the thread on the link it seems the creditors etc are supposed to delete your details after each transaction unless a recurring transaction authorization has been agreed (no such agreement in this case).

I rang the insurance company and they told me they were entitled to take the money from my account as I owed it to them - again, a matter for dispute. They immediately sent me out a copy of the old policy (which I already had), but omitted to enclose the transcripts I have been asking for since last April!!!!

I will pursue the matter as it has caused so many problems since.

jonesMUFCforever

Phone the bank again - this time ask them about a chargeback for an unauthorised transaction. You need to be firm and categorically state that you did not enter into a continuous payment authority with the card and that the initial deposit was a one off card transaction.