Does CCA request apply to insurance company?

[Redletter]

Hi there can any one offer advice on this please.

 

My friend cancelled an insurance policy which he had been paying monthly.

The broker then sent an alleged bill for almost £100 including a cancellation fee of over £40 and an alleged outstanding balance despite taking regular direct debits.

 

They ignored a request for a breakdown/explanation of the charges.

 

They then passed it to a DCA who added £25 admin fee.

 

The original broker then wrote to advise the DD had been cancelled and my friend had 7 days to get in touch or the insurance would be cancelled

(THIS IS AFTER THEY HAVE CONFIRMED CANCELLATION OF THE POLICY!!!)

 

My friend sent the broker a CCA request giving them 12+2 days to produce the Credit Agreement.

 

They have just written back confirming receipt of the letter and sent a complaint procedure booklet.

 

They have said they will 'review the issues raised' and contact my friend 'within 20 business days'.

 

They have not mentioned the CCA or the £1 postal order.

 

As they are a creditor and the alleged agreement was covered by the CCA do the same rules apply?

 

What do we do next? Just wait for them to default or remind them of the rules?

 

Thanks.

[heliosfa]

IIRC, Insurance Policies that are paid monthly are Credit Agreements (my OH's with Tesco's is) and yes, they are covered by the CCA.

 

They are a Debtor-Creditor-Supplier Fixed-Sum Restricted-Use agreement.

 

To try and get you a bit more help, can you answer some questions?

 

• In the CCA Request, did you ask for a statement of account?
  
• Was the policy cancellation confirmed in writing?
  
• Have the insurer terminated the credit agreement?
  
• did they issue a Default Notice?
  
• was the "debt" sold to the DCA or are they just collecting on the broker's behalf?
  
• are they demanding complete payment of the agreement? or some arrears?
  

 

Sorry for all the questions, but the more you can answer, the more help you can get!

 

thanks,

H

[Redletter]

Hi thanks.

Yes I asked for a breakdown showing all debits & credits.

 

Yes they confirmed cancellation in writing. However, the most recent letter contradicts this saying the DD should be re-instated to prevent cancellation.

 

Yes they cancelled it with the insurer as they referred to a 'return premium from insurer'.

 

They sent the 1st letter confirming cancellation stating their were outstanding costs including breakdown cover for remainder of year and a £45 cancellation charge.

The next letter claimed to have passed the case to a DCA called icon collections international limited with a further £25 admin charge.

The next letter was from DCA confirming this.

However most recent letter made no reference to any of above just simply stated that DD was cancelled and needed resetting within 7 days or the policy would be cancelled.

Dont know if DCA is independant or collecting on behalf of..

 

They claim there are outstanding costs £45 cancel fee, some for recovery and difference between return premium and balance. They reckon the interest reduction is £33, about half of the yearly despite only being in force for a couple of months!

However, the monthly collections made by DD should cover the period of insurance.

 

The car is off the road by SORN and the MOT ran out in Jan so the insurance would have been invalid anyway so why would anyone pay insurance they dont need!

 

We sent a copy of the SORN which is effective from 01-01-09.

The insurance only started on 25/11/08 and 3 monthly payments were taken so if anything we should get a refund!!!

 

Thanks for your time.

[Redletter]

My friend has just had a card through the door from Royal Mail for an undelivered 'packet' which required a signature.

 

Hmmm! We are now thinking..... CCA response - or summons??? (Gulp!)

 

Wont find out yet cant obtain packet for 48 hours!

[palomino]

It won't be anything from the courts as they use ordinary post.

[Redletter]

Ah right thanks that is reassuring!

[Redletter]

The CCA request expired on the 16 April (if you allow 2 days for Easter) and they have not been back in touch yet.

I am just drafting up letter 2 for default of CCA request.

 

It appears that this is normal practice for Swinton to add on made up charges upon cancellation of a policy.

Maybe they should change their name to 'Swindle'!!!

[Redletter]

Can someone please comment on this please...

 

It has just been suggested that the CCA1974 Sec 16(1)a states that the CCA1974 does not regulate insurance companies.

However my previous insurance documents clearly state, where I have paid monthly, that the agreement is regulated by the Consume Credit Act 1974.

Is this because the creditor is the broker and not the insurance company?

 

http://www.consumeractiongroup.co.uk/forum/insurance-assurance-companies/159649-problem-swinton.html

 

Please advise!

[Docman]

To clarify, the CCA 1974 does NOT cover an insurer issuing an insurance policy where the premiums are paid by installments.

 

When you pay your car insurance by monthly installments, you will find you are signing up to a loan (which is regulated by the CCA. The amount loaned (usually by a subsiduary or bank connected with the insurer) pays the insurance premium in one go and the driver then makes the loan repayments. Quite often you find there is a lot of paperwork when you renew. Most of this relates to the loan.

[Redletter]

To clarify, the CCA 1974 does NOT cover an insurer issuing an insurance policy where the premiums are paid by installments.

 

When you pay your car insurance by monthly installments, you will find you are signing up to a loan (which is regulated by the CCA. The amount loaned (usually by a subsiduary or bank connected with the insurer) pays the insurance premium in one go and the driver then makes the loan repayments. Quite often you find there is a lot of paperwork when you renew. Most of this relates to the loan.

Thanks...

So if the brokers are the ones threatening legal action to recover an alleged outstanding balance, then surely they cant do this as they are not the creditor in this case???

[Redletter]

*WON*!!!

Have just received a letter from Swindle.

 

"BLAHBLAHBLAH...

However, as we are now aware that you took the vehicle off the road on 1 January 2009 and as a gesture of goodwill I have agreed that Swindle will not continue to pursue the outstanding balance. I have spoken to Icon collections and they have now closed their records. I can assure that this will in no way affect your future credit rating.....

 

If we do not hear from you within 8 weeks we will consider the matter closed"

 

RESULT!!!

 

 

So all you people out there being "Swindled"

 

GO GET EM!!!!:grin:

_______________

[Redletter]

*WON*!!!

Have just received a letter from Swindle.

 

"BLAHBLAHBLAH...

However, as we are now aware that you took the vehicle off the road on 1 January 2009 and as a gesture of goodwill I have agreed that Swindle will not continue to pursue the outstanding balance. I have spoken to Icon collections and they have now closed their records. I can assure that this will in no way affect your future credit rating.....

 

If we do not hear from you within 8 weeks we will consider the matter closed"

 

RESULT!!!

 

 

So all you people out there being "Swindled"

 

GO GET EM!!!!:grin:

__________________

Redletter

 

"On a mission"

[supasnooper]

Congrats and well done.

[Redletter]

Well it's all thanks to all the help and information I have received on here so thanks to all and a donation is to follow shortly.