Close Premium Finance DD Charge

[jpf104]

Hi all
I have motor insurance with Corinthian Insurance which I pay for via monthly direct debits to a company called Close Premium Finance.
Due to Lloyds taking £90 out of my account for "unauthorised fees" so my DD failed!
Close sent me a Section 87 notice because my last DD was bounced by Lloyds. The charge was £30.00 - not to mention that lloyds have also have charged me £30!!!

Got onto the phone to them today and they stated that if i didn't pay the premium (£25.11) and the £30 charge the car insurance would be cancelled.
This was the last installment but the insurance runs until April!

1. Can an installment finance company cancel the insurance?
2. Could I reclaim this charge i.e. is it unlawful?
3. Does anyone else have experience of this sort of charging?

Any guidance would be helpful.

[craigwalton]

Right, this is a tricky one!!!

Yes, the charges are unlawful, but motor insurance is compulsary. If you are in the position, pay the charges, then aim to recover the monies in the normal way.

The other way is a gamble I'm afraid. If you paid the premium only, then the Insurance Company may cancel your policy, resulting in a loss of years NCD, but more importantly you could be prosecuted for driving with no Insurance - this means you will end up with a £200 fine & 6 penalty points - Insurance Companies do not like IN10's either, so your premium will go up drastically.

If you were to defend the points in court (if you got caught) I am not sure about the legalities involved in this, as you were willingly driving around aware that no Insurance Company was covering you for any damage you cause...

[jpf104]

Thanks for the reply..

I've paid the £55.11 and I'm going to reclaim the £30.00 charge.

Would you suggest I claim using the same method as with the Banks?

Thanks

[craigwalton]

exactly!

[karen654321]

hiya jpf104, Sorry to hear your having trouble with cpf.

Ive started mcol to reclaim charges from them.After they refused to refund any of them. Total is £150.00

I have recievied there defence this week. And now just waiting for a court date.

Good luck with reclaiming this charge and keep us posted.

karen