Hello all

I took out cover with budget insurance on 25 Aug 2009 and was covered until 25 Aug 2010. paid annual premium using credit card.

26 Sept I suddenly remember that I haven't renewed my house and contents cover, so my girlfirend quickly does a confused search and takes out new cover with a different insurer.

17 Oct 10 I recieve a letter (dated 12 Oct 10) from budget asking for £100 for the outstanding balance on my policy. Spoke to someone in customer services and he tells me that a renewal reminder was sent 31 July 10, and a renewal email was sent 25 Aug 10. Found the email in my mail box, unopened thoought it was usual spam.

Letters were also sent 31 Aug 10 to say that they hadn't been able to take money from my credit card (replacement card issued by bank). Letter not recieved.

Letter on 13 Sept 10 a reminder that they hadn't recieved payment. Letter not recieved.

17 Sept letter saying they were cancelling the policy. Letter not recieved.

Letter 2 Oct 10 saying I had an outstanding debt. Letter not recieved.

Letter 12 Oct 10 final reminder of outstanding debt. Letter recieved 17 Oct 10 and the reason I called them.

Am I really going to have to pay £100 for insurance that I didn't want?

Does anyone have any suggestions?

Thank You in Advance for all help!

Jon

Send a letter by recorded delivery with a full explanation and a copy of the schedule for the other Insurance you have arranged.

Hopefully Budget will accept the explanation and backdate the cancellation to renewal. But they might not. They might ask you for the premium for the period from the renewal date to the start date of your new policy, plus the normal cancellation charge. If that happens, you could make a complaint about the way Budget handles their renewals and threaten to continue the complaint to the FOS. If you went to the FOS, Budget would be charged a £500 fee by them and it would cost you nothing. Budget might therefore decide to write off any amount due and cancel the policy from renewal, as if you had lapsed the cover. What you don't want to do, is ignore Budget and hope they go away. They will pass on any debt to debt collectors and the amount owed would increase. Better to do as I suggest, explain the situation first and then complain if you need to.

Thanks for the reply, should I point out the £500 FOS charge in my letter?

No you should not, as this might go against you. If the FOS thought that you were using the fee they charge the Insurers as a tactic to stop the Insurers making charges, they would probably throw your complaint out, without looking at its merits.