Car insurance financed cancelled
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Andy20191
Posts: 1 Newbie
Hi,
I had insurance with flux direct for about a month until it was cancelled for speeding. Although I feel like this wasn’t fair as I was speeding within 10% of the speed limit (confirmed by them), I’m not going to argue that they didn’t have the right to do it.
After 2 days they contacted me and offered me another quote for ~£2500 which I agreed to over the phone. The deposit was £376 which I paid over the phone and the gentlemen explained that the insurance is now live. Few days later I get a letter saying that credit company has rejected the finance application and unless I paid in full my insurance would be cancelled. Once again I understand that, what annoys me is that when I rang up to get the £376 back they said they can only refund me £60 as they have to take their cancellation fee and charge me for insurance they provided me. Of course I wouldn’t have agreed to the insurance in the first place if I knew that my credit would be rejected. I asked them to investigate this and they said they would but the lady I spoke to is very doubtful that I’m entitled to a full refund. Now my question is, have I signed a verbal contract after paying them the deposit. And can they take a deposit then reject the finance after.
Many thanks :j
I had insurance with flux direct for about a month until it was cancelled for speeding. Although I feel like this wasn’t fair as I was speeding within 10% of the speed limit (confirmed by them), I’m not going to argue that they didn’t have the right to do it.
After 2 days they contacted me and offered me another quote for ~£2500 which I agreed to over the phone. The deposit was £376 which I paid over the phone and the gentlemen explained that the insurance is now live. Few days later I get a letter saying that credit company has rejected the finance application and unless I paid in full my insurance would be cancelled. Once again I understand that, what annoys me is that when I rang up to get the £376 back they said they can only refund me £60 as they have to take their cancellation fee and charge me for insurance they provided me. Of course I wouldn’t have agreed to the insurance in the first place if I knew that my credit would be rejected. I asked them to investigate this and they said they would but the lady I spoke to is very doubtful that I’m entitled to a full refund. Now my question is, have I signed a verbal contract after paying them the deposit. And can they take a deposit then reject the finance after.
Many thanks :j
0
Comments
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Whenever you are not happy with your insurance company the route to go down is a complaint in line with their complaints procedure
Then if you are not happy with the reply or they ignore you for 8 weeks you can escalate to the FOS for their adjudication at no cost to you0 -
I think you have grounds to contest the subsequent deposit and reclaim the entire £376.
When you first entered into the policy you will have been sent the documents relating to your credit agreement for financing that initial policy. This would have consisted of a document called the SECCI document which states in a standardised format the terms of your credit agreement with the insurance company. If the insurance company didn't pre-agree a credit limit which would cover the £2500 policy you were subsequently quoted (which would then require you to have the original payment instalments amended so they cover the same term length), then you would have to agree to a new contract which would require a completely new set of documents to be made available to you. The £376 is conditional on that contract being valid as the finance agreement is for the restricted purpose of purchasing that policy. Everything related to the £2500 policy should be fully recovered if the reasons for that policy being void is the failure of THEM to ensure the credit agreement is suitable for you, and affordable.
I would simply contact them and question them on the whereabouts of the credit documents relating to the £2500 policy, and then ask them about their official complaints procedure. Logging complaints and reporting them is a pain in the bum for regulated firms, when pressed they'll probably just buckle and refund you for the amounts you rightfully are entitled to.
Best of luck.0
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