Direct Debit Nightmare

[lolly371]

I am having a really bad time with my car insurance nightmare. It's abit long winded, so please bear with me while i explain.

Last month my car insurance repayments were due to start after a two month break. Because of the lousy post around here, I didn't receive the letter from the insurance company until after the date, otherwise I could have nipped it in the bud. The first problem was, I have been trying not to use direct debits and so was paying it every month by debit card. Unfortunately, the company decided to use really old bank account details from a direct debit I had set up years ago. This account is no longer in use, and there was no money to cover the direct debit. It was returned, and the bank charged me.

After a really irate phone call to the insurance company, they agreed to cover the bank charges if I sent in proof, but said if I paid by card there was a charge of £12.50 for doing this. So I set up a new direct debit for my new account, and requested that they take the payments on the first of the month, directly after pay day. This was supposedly fine.

I sent in the proof of the charges with a note saying that as it was an old account, and since I had covered the charge myself, I would like them to refund the charge a different way.

Last week, without warning, (middle of the month!!) the insurance company took out 2 payments, plus an additional £25 late payment charge. There was only money to cover the direct debit in there, as this was the only bill of the month left to be paid, but some of it was swallowed up by the unexpected £25 charge, so 2 direct debits were returned, causing more charges by the bank, and still no car insurance payments made.

Another phonecall later, this was again supposedly sorted out, they accepted they had made another huge mistake, refunded the very first bank charge from 2 weeks ago, saying they had tried to put this back in the account, but the bank wouldn't take it (i had told them it was out of date in my letter) promised to refund the new bank charges, on receipt of proof, and also the £25 charge they had taken as a direct debit, and said that they would take both the direct debit payments out on the first of the month as requested.

With past experience I didn't quite trust them so I made sure the payment was in the account in case they tried again. Yesterday they did. Unfortunately they took out another £25 late payment charge which, again caused the genuine direct debit to bounce. To date, they have now cost me £164 without me even managing to pay my car insurance. They are saying the account is in arrears which is why I am getting charges. My arguments are, a, they are not telling me in advance what is happening so I can be prepared, and, b, it is their fault I am in arrears, I could have paid them a long time ago if they had only done as I had asked. I can't seem to get anywhere with them, and it is costing me more and more money each week. I am having to use money put aside for food and other essential items, and it is rapidly running out. I need to nip this in the bud, but dont know how, when they keep taking random amounts on random dates.

Does anybody have any advice PLEASE?

[Alphageek]

Cancel your policy and move to a company who can organise themselves properly and make sure this bunch of fools refund you every penny they have cost you.

[buzby]

As Alphageek notes, you need to have absolute trust in anyone you give a DD to. However you are mistaken in paying with plastic, they can also take from this without your authority in much the same way and you have even less protection.

 

You may also find they've automatically cancelled the insurance anyway - check with ASKMID or you may be stopped on the road if they get ANPR working in your area.

[lolly371]

thanks for the suggestions, i have checked and the car insurance has not been cancelled yet, but i have been considering changing companies. its a nuisance, because i have been with them for years, and they have always been very good, but they have more than made up for that in the last few weeks. i am glad you warned me about paying by card, it makes sense, really, i just never thought about it. no matter how you look at it, there is no safe way of paying. the direct debit guarantee means squat, and there is no security with a debit card, where is our protection as consumers? maybe it could be something to tackle the banks about once the whole test case business is over. i do love a good battle!!

[buzby]

Agreed, I still pay annually by cheque - but the number of companies prepared to do this is rapidly diminishing, and now it is usually only brokers that are prepared to accept payment in this way.

[lolly371]

a quick update, i have been on the phone to the insurers, apparantly the finance company who deal with the payments is actually to blame, so the insurers have cancelled the direct debit and have set up a new payment through themselves, (cutting out the middle man, so to speak) and have refunded the default charges to the policy, AND agreed to refund all bank charges once I send proof, so alls well that ends well. I get to stay with the company i like, and get rid of the incompetent idiots, that have messed up so badly. i have cancelled the direct debit from my end, too, so fingers crossed they keep to their word. thanks for all the advice, its good to have a rant about these things.

[electron99]

For the next couple of months I would make frequent checks on your bank statements.A company saying they are cancelling a direct debit, and them actually doing it are two different things.

[buzby]

Now you're getting somewhere - but as electron99 noted, don;t take their word for it. As soon as you've made those alternative arrangements, endure the old mandate is removed from your account. and watch out for it creeping back!

[Alphageek]

Hope it all turns out ok for you.

[lolly371]

thanks everyone. i shall definitely be keeping my beady eye on them from now on!