Hi Folks

Does the same apply to insurance companies as to banks with regard to unlawful charges? I mean, I had a direct debit on an insurance premium unpaid because of insufficient funds but this time it wasn't the bank that levied the unlawful charge but the insurance company are trying to charge a £30 'administration charge' and are threatening to withdraw cover and/or demand the whole outstanding year's premium if the monthly charge plus the £30 aren't paid. Anybody got any experience of this and have I got any comeback if they cancel the policy or get on their high horse in any other way? Cheers

Andy

Anybody?

So I know whether or not to tell them to stick it???

Reading down the list it looks as though this is a fairly common thing. I have no intention of paying the admin charge as they call it and I shall be sending them the owed premium minus the charge. If they then try to cancel the policy or demand the full amount I will require them to provide a full breakdown and they can take me to court if they wish but I will first enlighten them that they will have to explain to the Court precisely what ther charge was for and their justification for any action they might take.

The company is Close Premium Finance, by the way

How's this:-

'With reference to your letter of xxxxxxxx please find enclosed my cheque for £xx.xx, being the missed premium on the above account. Your ‘administration charge’ of £30 is a profit-making, unlawful charge and will not be paid unless you can provide me with a true, believable breakdown of how this charge was arrived at.

Any attempt to cancel this agreement as a result of non-payment of your charge will be regarded as retaliatory and will be challenged in Court unless, again, you can prove to me that the charge is justifiable.

I hope we will not have to resort to legal action over this matter. The missed premium was a genuine error and I would like to continue paying future premiums as normal but will not be intimidated, by threats of cancellation, legal action or otherwise, into paying unlawful, unenforceable charges. I hope you will agree that it will be beneficial to both parties if this matter is resolved immediately by your acceptance of my payment and cancellation of your charge.'

Sounds reasonable to me.

Hi,

How did you get on with this? I signed on tonight specifically to ask the same question about Close Premium and wondering whether indeed these 'charges' can be claimed back. I owe them another one now so think i'll use your template letter and see what happens.

Thanks!

Let me know how you get on....

This is only just starting so I haven't sent the letter off yet. They've 'given me' until 1st of May so I'm sending the cheque (minus the thirty quid) next week. I'll post the result as soon as I know anything. I'm beginning to enjoy all this stuff...

I am claiming refund penalty charges from Close Premium Finance.

The main point in reclaiming charges is whether they are unlawful,and not who is imposing the charges.

When I made my initial inquiry to Close Premium Finance they said "Oh that only applies to banks and credit cards not us,bye".

I'm at the LBA stage at the moment.

Brilliant, thanks for replies.

I'll be sending my first letter to them tomorrow.

Keep us informed!

Can you claim administration charges back? Like bank charges.

I missed A payment and they have been charging me £20 each time for administration charge they have debited out of my account.And if i can claim them back Could someone tell me where i can find a template to print off. thanks

Administration charge sounds like Penalty charge,I would send them a prelim letter.

We sent them the month's premium (which they cashed) with the letter and a request for a new direct debit mandate so that no more payments would be missed. Heard nothing until today when a letter arrived telling us that as we hadn't paid the £57 etc they would be excercising their right to close the account a demand full payment. We haven't defaulted - all payments have been made within the month they were due. The only thing we've refused to do is pay the rip-off charge. They have ignored our request for a new dd mandate. Any thoughts anyone?

Hi,

I sent my LBA to Close last week and have given them 7 days before I start my MCOL which I will at the end of the week.

Interestingly, for the last payment I missed they've sent me a letter telling me to pay up within so long and that as I've defaulted on the DD I will be charged £30 for this, so instead of owing them £20.47 I now owe them £20.47 (er hello) which includes the £30 apparently. Just how stupid are they?? that's fine, I have no problem paying the £20.47 as that's just what I owe. Also, trying to pay on their automated line which is having some technical problems and asking people to call back another day!!

unbelievable. I'm changing my insurance because of this.

pinky

Can someone tell me if I add the 8% stat interest on my MCOL claim now? even with Close Premium? does it make a difference what sort of company they are? I'm guessing not.

Thanks

I had a charge with Close and rang them and they refunded it no bother - anyone tried that in the first instance?

They weren't too helpful. Ignored my letter and are now threatening to close the account despite the fact that I haven't actually defaulted because paid the premium albeit a week or so late. All I'm doing is refusing to pay the £30 charge.

Anybody like to comment on the following before I send it off? I'm also wondering whether I should pay the full premium for the year to get them off my back and then report them for being knobs?

'I am in receipt of your letter regarding the above account.

I see that you have chosen to completely ignore everything I said in my letter to you in which I apologised for the initial missed payment and requested a new direct debit mandate so that future payments could be made on time. The only aspect which you appear to have taken the slightest notice of whatever is the cheque I enclosed which I see has been presented and cleared.

First payment therefore made within the month it was due - not defaulted.

Second payment would have been made if you had seen fit to send a dd mandate.

Your decision to terminate is seen as retaliatory because I did not pay the unlawful charge. The fact that you categorically state that £57.61 ‘is the amount owing to Close Bothers Limited’ is both untrue and misleading. Even allowing for the fact that this month’s payment (which I have offered to pay by dd) has become due, the £30 on top is unlawful and will not be paid under any circumstances.

I enclose a further cheque for this month’s payment (27.61). This will again bring the account up to date.

I will be speaking to my insurers regarding this and if I find my insurance has been affected because of this I will be reporting the matter to …….. and taking the matter further with regard to legal action.

• There has been no default on this account
  
• Payments have been made within the month they became due
  
• Your £30 ‘administration charge’ is a profit-making rip-off
  
• You have ignored my request for a direct debit mandate to set up a new monthly payment

Provided you accept the enclosed payment, restart the account and forward a direct debit mandate so that normal payments can be made I will overlook your misguided attempt to impose an unlawful charge. However, any moves to retaliate by closing the account, placing adverse entries on my credit record and so on will result in reports and complaints to every relevant authority.

Please can we settle this matter amicably and without further hassle in order that we can all get on with our lives without having to spend time and effort arguing over petty trivia?

Thank you

Yours faithfully...'

Having just read the letter from Close again it goes:-

'Blah blah blether, rabbit etc.......

You have failed to make payment in time and you therefore continue to be in breach of the Agreement.

In accordance with our rights under clause 7 of the Agreement, we have decided with immediate effect to terminate the Agreement and may enforce our security by cancelling your insurance policy as set out in the attached schedule and applying any refund of premium in or towards satisfaction of your obligations under the Agreement'

Well, quite apart from any charges of retaliation that sounds to me like they're just going to cancel the insurance. No talk of chasing me for the year's premium so maybe I'll just say well, get on with it then and look for another insurer? If they come on to me for the balance later I'll just tell them to go away, refuse to acknowledge the debt and present the letters offering and enclosing payment in the event they try to sue me.

Any thoughts, anyone, on either course of action?

well I'm just claiming back the charges I made and then changing my insurance, I can't be doing with all this messing around.

So, should I be adding on 8% now as about to put in MCOL?

pinky

Hi. ive also had a couple of £30 charges on top of my normal insurance this year... Im also with close premium.. Can you claim back one its already been paid though? they took mine through direct debit

karen

I am claiming refund penalty charges from Close Premium Finance.

The main point in reclaiming charges is whether they are unlawful,and not who is imposing the charges.

When I made my initial inquiry to Close Premium Finance they said "Oh that only applies to banks and credit cards not us,bye".

I'm at the LBA stage at the moment.

Have you got an address for close premium?