Thread: Cancelled House Ins with Budget

I had buildings and cont ins with budget, when we changed our mortgage I needed confirmation from them that the insurance had been changed that the new mortgage company was now showing as the interested party as the mortgage could not complete until this was done.

I was constantly contacting budget to get this changed I request they send me a fax as letters were not being received from them but they could not do it, in the end after 3 weeks I received a letter from the advising that the insuarnce had been changed but I had another persons address on the letter. As it was taking so long I had to cancell the insuarnce with them and set up a new insuarnce policy with Tesco as they could do it instantly and sent confirmation directly to my new mortgage company. (Budget was not able to inform the mortgage company direct).

I have now received letters from budget requesting the outstanding balance of £130.16 due to the cancellation of my policy. If I did not pay they would transfer the debt to an external agency.

Do I have to pay them the £130, If I do it seems a bit unfair.

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Just received a letter in the post today from C.A.R.S (Creditlink Account Recovery Solutions Ltd) requesting full payment now before they start formal debt recovery actions.

If they start debt recovery aAsk for your day in court. They can't take anything without taking it infront of a judge and getting a court judement. If they have been unreasonable a judge will rule in your favour or ask you to pay. I would mention something like they broke their contract by taking an unreasonble amount of time to provide cover for a new location.

Woah woah Delilah! Nobody's talking about court action here, this is probably a simple misunderstanding that can be easily resolved and advising people to ask for their day in court is just silly!

Now, lets get this sorted. First things first, when you say you've cancelled the policy do you mean you actually called them up and asked them to cancel over the phone or did you just simply cancel your direct debit?
A lot of people assume that the latter will just cancel a policy when in fact all it does is stop the payments so the policy continues but without payments made so the customer falls further into arrears, by the time the insurer decides to cancel the policy for non-payment, they still ask for any outstanding balance to be paid.
So, assuming that you called and cancelled over the phone, what were you advised? is there a cancellation charge? have you made a claim? (if so then the insurer is within its rights to ask for the full years premium as they've had to pay out for a claim so fulfilled their contract).
The first thing you need to do is call budget, speak to customer services and find out what exactly the outstanding balance is for. once we have established that, we can then work out what to do about it.
I would also call up the debt company and advise them that the debt is in dispute, this will stop them from chasing you for now as they cant collect a debt that's in dispute. They'll probably hold your account for a couple of weeks to give you time to sort this out.

Let me know how you get on


DA