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Insurance... Help Needed

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Hello guys and girls... I am after some guidance.


I have motorbike insurance through A-Quote but there is a third party called Premium Credit Ltd that is taking my monthly DD payment.

My June payment have been returned (twice) unpaid by my bank because of insufficient funds(i know, i should have known better!).


Now Premium Credit Ltd sends me as letter stating that they were unable to collect and a DEFAULT charge of £20.00 been added to my account, and this particular letter is to be treated as a default notice served under s87(1) of the Consumer Credit Act 1974.


And it goes on to explain the remedy and consequences...etc etc.


My question: can they issue a default notice, after one single payment went unpaid? thanks in advance.

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i'd be more concerned as to if your insurance was still valid first!


a default notice has to give you 14 clear days before any action.

i would think the charge is invalid.



please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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DX my insurance is still valid, the letter was dated 16th June and i need to remedy by the 30th June (which will be done tomorrow 19th).

After that date they will write to A-Quote to cancel insurance.


Now this seems a bit extreme to me... miss a payment and they instantly fire a Default Notice with £20 charge attached to it?


Can they actually attach a charge to the default notice?

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Premium Credit are basically a finance company with whom your brokers/insurers would have passed your details. Basically you have taken out a loan to finance your insurance premium.


Therefore like all banking/finance institutions they will make charges for late payment/defaults.

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Basically you have taken out a loan to finance your insurance premium.


Errr no! when i ve taken out the insurance A-Quote asked me how would i pay the premium: one lump sum or direct debit? i ve chosen direct debit.


As far as I remember i have no contract with Premium Credit ltd, they're only taking payments from me.

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The process it dealt with on a telesales contract without needing your signature, all they have to do is send you the letter with the terms of payment and contract.


Not all insurance companies offer their own direct debit arrangements so the likes of Premium Credit & Close Brothers & others basically finance peoples insurance premiums to enable them to pay by instalments.


It is a loan much the same as any other, if you default they write to you and if your don't pay they have the right to request your insurers cancel the policy. If the refund (if any) is not sizeable to settle the outstanding balance they will then take you to court/ instruct bailiff's!

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So let me get this straight...


They passed my data to this company, i have entered some sort of contract with Premium Credit without me knowing and this contract is actually binding?


i can't remeber ever signing anything!

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Have to agree with Shudder here!


PCL are a major premium finance provider. This is a separate agreement, PCL pay the full due premium to the Insurer/Broker. They will frequently set up the arrangement without you completing a direct debit mandate, sometimes PCL will send an application for signature and return.


You may well find that the arrangement is explained in A Quotes 'Terms of Business Agreement/Key Facts Document' that they will have sent you.

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