My car was insured by Kwik Fit and I paid them by monthly direct debit instalments.

However my DD in January was returned to them unpaid (twice) owing to me getting in post-Christmas red with my Bank.

On the 09/02/09 I received a letter from Kwik Fit stating that they were unable to collect my last direct debit, resulting in a charge of £10 being added to the instalment plan. They then listed my amended monthly payments in a table, (around £105.00 per month) which included the unpaid instalment which had been due on 21/01/09.

On the 14/02/09 I sorted out my Bank and telephoned Kwik Fit to arrange to make the payment over the phone. However I was quite shocked to be told that my policy had been cancelled by them on the 13/02/09 and there was nothing they could do to accept the payment on the cancelled policy. So there I was, 5 miles from home at the Bank, with my baby in the car and advised that I wasn't legally insured!

I drove home (illegally) and immediately took out cover with another company.

On the 29/06/09 I received a letter from Buchananclark + Wells chasing me for £302.50 on behalf of Kwik Fit and asking me to accept this letter as Final Notice and that they if payment isn't made they are seeking to commence Legal Proceedings against me, with payment of Interest and Costs in addition to the Principal Sum being sought.

I'm not sure how I stand with this legally as I offered to pay my premium of £104.56 over the telephone (not sure how it is now £302.50 they are seeking) and wasn't even advised of the policy being cancelled until I acted in good faith to catch up with my instalment plan.

Can anyone help please?

Many thanks...

if they sent you a letter confirming a new payment plan on the 09.02 but then cancel on the 13.02 they are in the wrong and you should call their complaints department to raise your concerns that you were not aware the policy had been cancelled and also when you called you were not advised of £302.50 outstanding.

Their wording states that if they cancel they will make a proportionate charge, i,e you should only pay for the cover they have provided until the cancellation date.

keeping ringing their complaints dept every day,hound them with threat of the fos.

thanks for that... will get letter together this week, although, does anyone know, have they actually broken the law by cancelling my insurance without me knowing, may help my argument?

thanks again

no they haven't broken the law. They are entitled to suspend or cancel cover if the premium hasn't been paid.

thanks for that... will get letter together this week, although, does anyone know, have they actually broken the law by cancelling my insurance without me knowing, may help my argument?

 

thanks again

they have to give 7 days notice that your policy is going being cancelled, they should have written to your last known address advising the date that cover will cease.

according to Kwik Fit's terms and conditions, they charge £50 or their commission, whichever is the greater if a policy is cancelled more than 14 days after it started. Oddly I couldn't find any reference to them cancelling your policy if the premiums are not paid, but it is a general principle of most insurance companies

Different situation but Swinton charged my father £50 for cancelling (he had not cancelled and it had been paid for upfront). I complained and it was written off in the end.

I think the whole £50 canx fee thing is a rip-off. A cagger called Wulfyn posted on the Swinton thread and said something like they weren't allowed to do this and that lots of the insurance companies had been fined for it. Maybe he'll comment on your thread later - I don't know how to link him in!