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  • FIRST POST
    • cplmadison
    • By cplmadison 9th Oct 19, 12:45 PM
    • 13Posts
    • 0Thanks
    cplmadison
    Default without credit agreement
    • #1
    • 9th Oct 19, 12:45 PM
    Default without credit agreement 9th Oct 19 at 12:45 PM
    Hi

    Just after a bit of advice

    last year (sept 2018) i purchased home contents insurance for the princely sum of 120 this "expired" sept 2019. It seems the insurer as renewed the cover without me knowing and Premium Credit who deal with the monthly repayments have been spamming me for 2 or 3 weeks telling me I have to sign the credit agreement or face default charges etc

    Now as I didnt ask for my contents insurance to be renewed I was initally reluctant to sign.

    On October 2nd 2019 (yes 7 days ago) I decided hey maybe I should carry on with the insurance it isnt much, so I signed the Credit Agreement. On October 4th (2 days later) I was issued with a Default Notice as the payments for September 2019 werent made (as we had no valid credit agreement).

    My question is, is the Default registered on my credit file legal since I only had only signed the agreement 2 days previously and can I / Should I cancel the agreement within my 14 days. Would cancelling within my 14 day period automatically void and remove the default?

    Ive spent 5 years slowly building up my credit score after a period of bad debts in order to get a mortgage in March 2020 and was almost there but now these guys seem to have screwed it all up for me again

    Seriously regretting signing the agreement but can they really enforce septembers payments on me when I only signed in October? Doesnt the credit agreement start from the date of my signature?

    Appreciate any help!
Page 2
    • boo_star
    • By boo_star 10th Oct 19, 12:03 AM
    • 2,673 Posts
    • 1,997 Thanks
    boo_star
    Ok, just re-read your first post.

    As the agreement wasn't in place in Sept, there is no legal obligation on you in Sept to make any payment, so you have not defaulted because there was no agreement for you to breach.

    Kind regards

    The Mould
    Originally posted by The Mould
    A default on a credit file and a default notice required by law are not the same thing.

    Stop giving bad advice
    • Ben8282
    • By Ben8282 10th Oct 19, 12:27 AM
    • 3,612 Posts
    • 2,005 Thanks
    Ben8282
    I still don't understand why you think a new direct debit should have been set up for the new credit agreement if it was a continuation of the same insurance policy and the original direct debit is still active on your bank account (although unclaimed since August). This really makes no sense to me.
    So far they have given three reasons for not collecting the direct debit.
    1. They could not collect it because you had not signed the credit agreement. (This is in my opinion nonsense).
    2. You cancelled your direct debit.
    3. You closed your bank account.
    Last edited by Ben8282; 10-10-2019 at 12:29 AM.
    • Ben8282
    • By Ben8282 10th Oct 19, 1:02 AM
    • 3,612 Posts
    • 2,005 Thanks
    Ben8282
    Thanks for all of your replies and advice lots to read through...

    To answer some of the questions

    The 2018 to 2019 direct debit is still on my bank account and hasn't been claimed since August 2019.

    The credit agreement arrived by email early September but I didn't sign it or agree at the time because i wasn't sure I wanted it as I have other insurance too You state here that you have other insurance which is why you were unsure if you wanted to continue with this insurance policy. Assuming that this other insurance is contents insurance, why did you take out the other policy if you already had contents insurance or why did you take out the second insurance when you had already taken out the first policy?

    Premium. Credit failed to setup a new direct debit on my bank account in this time, I assume because they had no credit agreement. HIGHLY IMPROBABLE

    This resulted in me missing my September payment as there was currently no valid agreement or dd HIGHLY IMPROBABLE

    When I did decide to sign the agreement In October Why did you decide at this point to sign the credit agreement as you say above you had other insurance which was your reason for not signing the new credit agreement in the first place it was 2 days before the next payment was due which didn't go through. Yes but why did it not go through?


    Premium. Credits response was they tried to take the money from a closed account which they said was an error and they would investigate what happened. I don't know what they mean as my account is open, no dd was ever setup for the new agreement. In the default notice it says they tried to collect a payment by dd but I had cancelled the dd with my bank. This is untrue one was never set up and my bank can confirm this.

    I will check the date on the default notice too and post that up in a moment
    Originally posted by cplmadison

    We ahve household insurance policies paid monthly. We have NEVER received any new credit agreements to sign and we NEVER see new direct debits being set up each year when they auto-renew. We just receive a letter saying something along the lines of your policy has been renewed for a further year and information concerning the new premium and direct debit amount.n
    • cplmadison
    • By cplmadison 10th Oct 19, 8:05 AM
    • 13 Posts
    • 0 Thanks
    cplmadison
    the 1st option is the only valid one

    the direct debit is still valid and my bank account is still open
    • cplmadison
    • By cplmadison 10th Oct 19, 8:25 AM
    • 13 Posts
    • 0 Thanks
    cplmadison
    thanks everyone for the advice

    especially The Mould I have emailed both the CEO and COO into the complaint, i know courts treat email communicatons in the same way as letter (i did also send a letter recorded yesterday cancelling the contract and also lodging a formal complaint)but this email does go into more detail

    Can i ask if i referred it to the Financial Ombudsman Service (ive used them before for other things) can I also start court proceedings, or can court proceedings only commence after the investegation? I remember my last court case (which i won) they judge specifically asked what the FOS said regarding the incident and took that into consideration when making judgement against the other company involved
    • cplmadison
    • By cplmadison 10th Oct 19, 8:27 AM
    • 13 Posts
    • 0 Thanks
    cplmadison
    also for those interested the current CEO of Premium Credit also used to be the CEO of Wonga....
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