Hi,

Hoping someone can advise me on this. I have a car insurance policy funded by Premium Credit Ltd. and every month they take £19.36 towards it. However, on a couple of occasions I have not had the funds in my bank at the time of the DD being called for, although paid in the same day. So the bank refused the DD, I get that part but what this company are doing is then calling again for the DD, again I understand, but they are also taking a £20 penalty charge (stated in the areement) directly from my account without notifying me when, although they say they have sent letters - never received - and even told me on the phone that one letter had been sent 3 days after they had tried to take this penalty charge! It has caused me no end of problems as the bank has threatened to close my account because I have only had enough money to cover the re-called for DD!!

When this happened the first time, I phoned them and told them that the bank had told me that they cannot do this without giving me due notice and they waived the charge. The second, and last, time they point blank refused to admit that they had acted unfairly, told me that they had sent letters which have never arrived - in any case the DD is due on the 14th - if they had sent these letters they were apparently sent on the 16th and 22nd - they treied to take the charge and the re-called DD on the 19th.

Is this legal and what should I do?? The bank have now cancelled the DD. Although if I pay by any other method they charge an extra £12.50 on top!

HELP pls!

no they cannot do that without writing to you and advising they are taking a different amount.

ring your bank and invoke the DD guarantee and get them back

dx

Thanks for that advice. I am seeing my bank this afternoon about what you have suggested. In the meantime I am thinking that it may be necessary to cancel my insurance as it will probably work out cheaper to pay the cancellation fee rather than pay Premium Credit the monthly instalment plus the £12.50 that they will demand for paying by a method other than DD !!!