Express Insurance - Cancelled but want £

[Wilcouk]

I took out Insurance last May with a company called Express Insurance, the premium was £1,500 with a deposit of £200, i paid them every month on time and everything was fine.

 

However i lost my licence in the following October and thus cancelled my insurance policy thinking that after reading my agreement it only said a £50 cancellation fee because well obviously i dont need to pay for insurance on a car that i can no longer drive.

 

Thinking that it was done now i have now recently i got a phone call from a debt collector wanting the full and final fee of £800 (the rest of the insurance for the year) and they have explained to me that unbeknown to me that a company called Close Premium Finance were actually the one's that gave me the insurance and took it out as a "loan" for the full fee of £1,500 so i seemed liable for the whole money whether i liked it or not!

 

I refuse to pay this, i have never had a problem or ever heard of anyone else that had a problem if they cancelled their insurance and having to pay for the whole remaining amount in my case near enough a year!

 

I am on a Debt Management plan and thus cannot take anymore loans out and my financial situation is dire as it is without taking on a extra £800!

 

What can i do about this? help please!

[honeybee13]

Hi Wilko, sorry to hear about your problems.

 

There was a similar post here not that long ago, although I don't remember the outcome. You won't like this, I don't suppose, but I will tell you the same as the other poster. It sounds to me as if you could have signed up for a year initially and agreed to pay by monthly instalments, until May 2010. Did you have an agreement with a separate finance company, for instance?

 

In my case, my annual premium is paid in advance to the insurer, by the finance company, and then I repay them over the following year.

 

That's the worst case scenario, maybe something will turn up to help you. If you could post the wording on your policy document about cancelling, we can have a look at it for you.

[Mossycat]

There is quite a big difference in the paperwork you would be sent to sign between a straight forward insurance policy and something that involved a credit agreement. If you have agreed and signed to a short term loan to pay for the insurance then they must have sent you a credit agrrement for you to sign.

 

Can you check what paperwork you have copies of and post back.

 

Mossy

[Arghh]

Paying a years insurance on monthly direct debits is usually entering into a yearly credit agreement, which will mean that if you happen to cancel the policy part-way through you are breaking the agreement, which will incur further administration fees from them plus whatever interest you may be liable for.

- Paying on monthly installments is NOT the same as paying for each month as you go along, therefore you won't have the right to just cancel free of charge after you've made that particular months payment. As Mossycat said, it is classed as a loan.

[fork-it]

I cant see how this is on credit when the consumer is paying premiums up to a year in advance of insurance being provided.

 

If the DD is cancelled the insurance is cancelled on the Motor insurance database, so if they are trying to charge you money for insurance they have not provided, or has no intention of providing, the insurer commits an offence under Section 2 of the Fraud Act 2006.

 

That's my 2p.

[Mossycat]

I cant see how this is on credit when the consumer is paying premiums up to a year in advance of insurance being provided.

 

If the DD is cancelled the insurance is cancelled on the Motor insurance database, so if they are trying to charge you money for insurance they have not provided, or has no intention of providing, the insurer commits an offence under Section 2 of the Fraud Act 2006.

 

That's my 2p.

 

Re-read the original post from the OP.

 

Usually insurers allow customers to spread the cost of the annual premium into monthly payments, however, in this case the OP is saying that a seperate loan agreement was set up, so the OP effectively borrowed the cost of the annual premium and paid that in full, leaving the credit agreement in place for them to make the repayments.

 

The OP now has an agreement with the loan company for the amount of the loan (plus interest), which is a seperate entity to the insurance policy.

 

What the OP needs to do is check the original documantation to confirm that they signed a loan agreement. They also need to check the terms and conditions from the insurer regarding cancellation charges and then arrange to cancel the insurance and get a refund and then use that refund to pay back the loan agreement (probably by adding some funds to it)

 

Incidentally, the OP is not paying anything in advance, insurance premiums are due and payable for the whole year on day one of the policy, annual policies are not sold on a monthly basis, but the fact that most insurers will allow policyholders to spread the cost monthly does make it confusing to some people.

 

Whilst this is an unusual way to pay for an insurance policy it is NOT fraud in any way shape or form so your reference to the Fraud Act is a moot point.

 

Mossy

[boxingliz]

Hi Wilcouk,

 

I am having the same problems with insurance, started a policy, same close premium finance were involved. I didnt sign agreement, was automatic and on net. The DD failed, so I rang them and paid first month, they sent schedule of payments and next day another one £100 dearer for the month so I cancelled the policy complaining about their shoddy behavour, they then wrote saying I owed them £350 or so, I wrote back saying I had cancelled exactly one month of start date and was willing to pay whatever they deamed a reasonable amount for the time the insurance policy was running. they said no full amount now got debt collectors letter. Should I complain to FSA and Financial ombudsman? What has happended in your case?

[cheekykitty]

I am now in the same boat any updates on this, I bought a Diahatsu Hijet a month ago and insured with Express Insurance and got a Close Premium Finance letter too, never signed anything it was done on the internet. I part exchanged the Hi jet for a Megan Scenic today and did a new quote on the Express insurance site and on a few others too, found a good price on Compare the Market half the price of what Express wanted, so I phoned Express saying I wanted to cancel my policy to be told I have to pay an additional £193.11 on top of the £63.24 Deposit I have allready paid.

This seems an extorionate amount in fact its like paying for something they will not be able to provide as I no longer have the car.

I would'nt mind paying an amount to cover the interest, but £256.35 for a months insurance.

[dj0nes]

Hey guys, I just wanted to say I am in exactly the same situation!

Same companies, express - close premium and their shoddy debt collection close credit.

 

My insurance was cancelled 9 months in as I missed a payment for the month due to losing my job - my monthly insurance is £255 so it's not pocket money! Express/close premium would not even let me pay the rest of the premium upfront when I offered they seemed happy I defaulted almost.

 

I have now received a notice for payment of £450 from close credit and no ncb for that 9 months i've driven accident free, surely thhey cannot get a way with this. i dont even remember electronically signing an agreement, i definately didn't return one by post.

[cheekykitty]

I got my other half to check the paperwork for this and there was 2 copies of a credit agreement in amongst all the papers, they are barely readable and in extremely small type, I was supposed to sign and return to them, they are still here, I have sent back the policy and the Close Premium Finance letter of cancelation that was enclosed too, I have dated them back to 13 days after I took out the policy, and 10 days ago from today, awaiting to hear from them now.

I dont know if they can enforce me to pay when I have not signed the credit agreement , it did say I had to sign it and post it too them. It also stated that I only had 14 days from the date of the letter in which to cancel, it arrived about a week after it was posted so 14 days would never have been enough anyway, taking out the bank holiday and weekends, and the fact I was on holiday for 2 weeks anyway.

Edited August 25, 2011 by cheekykitty

[dj0nes]

Bump

I too would like to know if they can enforce any 'debt' if the original agreement wasn't returned?

[unclebulgaria67]

This is my understanding.

 

If you sign the credit agreement, you agree to be bound by the CCA and can use any right that this allows you.

 

If you don't sign the credit agreement, it is a simple matter of law of contract. When you arranged the policy, you agreed to the terms of the Insurance contract. This would have included terms relating to payment of the premium, cancellation fees etc. Therefore if you breached the contract, the Insurers could take you to court on that basis.

 

Hope that makes sense.

[cheekykitty]

Please correct me if I am wrong on this, Express insurance takes out a loan with Close premium for the amount of the insurance, something I have never heard of before, then they use this to pay for the insurance with whoever they deal with, If someone cancels early then Express Insurance recieves a refund less an amount that the cover has been in force for, and they should pay this back to Close Premium, then I will get a final amount to pay.

But it looks to me that someone, somewhere, is not doing this and they are certainly not Paying the amounts back to Close Premium meaning that I am now going to be in Debt by over £300.00 as I have to still pay the original loan amount back along with cancelation fee's of £50.00 to both of them (Express Insurance and Close Premium), might as well of kept the insurance running would have been cheaper but is that not against the law to insure a car that is not in your poccession?

The law changed this year that meant that the hijet had to be insured wether been used or not, seems like some insurance companies are out to fleece us BEWARE, I wont be using Express Insurance again.

[brittone05]

Express insurance apparently no longer use Close Premium - they told me today that from September they changed to Barclays.

 

I am having problems with them at present as they were made aware that my husband has 9 years of TRADE insurance with no claims but are now refusing to use this as his no claims bonus. they decided this 15 days after policy was taken out - 1 day after I would be eligible to claim my deposit back!!

 

thelady today says i owe them £98 cancellation charges for windscreen cover and courtesy car but they would waive the £50 standard charge.

 

I asked her why i was paying for the windscreen and her reply was that I am paying for the 12 months cover initially agreed in my insurance - so the insurnce is void in itself but I am paing for windscreen and courtesy car for Sept 11 to Sept 12.

 

I asked if in 6 months time my windscreen cracks, who do I call for a replacement and she said " whoever you are insured with at the time" - surely if Iam paying for windscreen cover and courtesy car cover until Spet 12, I am entitled to claim on it?

 

She says no - I said that she is then fraudulently tking my money as she has no intention of supplying the service I am paying for - she said she would have to check with her manager!! xx

[unclebulgaria67]

Make a formal written complaint about this and if they don't resolve within 8 weeks go to the FOS. Once you have a complaint registered, they can't chase for any money while it is in progress. The FOS could take atleast 6 months beyond the 2 months the Insurers have, so this will give plenty of time for this to be considered further. I think you have a good chance of winning, as the terms of the Insurance are unfair.

[orange86]

Hi,

 

i googled for express insurance and this thread came up!

 

i have the same issue. i took out car insurance last year with express insurance on direct debit monthly payments. They requested my driving license copy and later on a copy of my license counter part. it took me a while to find the counterpart as it was hidden in a drawer lol.

Anyway 18 days into the policy they canceled it, they took their money and i thought that was that.

now 8 months later i get a letter saying i owe just under 200 pounds with no reason on their for why. i didn't sign and post back the close finance contract last year though.

 

any help ?

[johnpaul1970]

I ve just had the same thing come through the post this morning!!

 

a letter from EXPRESS INSURANCE, saying that they cancelled my scooter insurance on 05/08/2011 and following the cancellation there was an outstanding balance of of £95.20 due from me!! and they apologise for not telling me earlier!! (what after a YEAR nearly!!??)

Now i knew there was a cancellation fee at the time, and i KNOW I PAID IT OVER THE PHONE TO THEM WITH MY CARD.

- So whats this about after a year??

Ive rung the number it tells you to ring 0800 519 6261 and you get an automated service asking you to press 1, 2 or 3 depending on your needs? well i tried pressing ALL options and NOTHING happens!! - it just keeps repeating the same options, then eventually it hangs you up!

 

PLEASE CAN SOMEONE GIVE ME SOME ADVICE?

 

Many thanks,

 

John Paul.

[unclebulgaria67]

Send the letter back to them, with a covering letter, saying that you have been trying to phone them without being able to get through. Advice them that you would like to dispute this and can they send you their complaints procedure, together with an FOS leaflet. Tell them that unless they waive the amount, you will refer the matter to the FOS. As it will then cost Express a £500 FOS case fee and you nothing, they will probably write it off. You could also add to their worries, by pointing out that the FSA might be interested to learn about the non effective accounting processes being operated by Express.

[johnpaul1970]

Thank you VERY much for that mate, i will take your advice and do that, and i will let you know how i get on.

just point me in the right direction FOS stands for what? and the FSA? (sorry if im being a bit thick?) LOL!!

 

thanks again, JP.

[unclebulgaria67]

Google search FOS and then FSA. While you are on their sites, have a read of the information.

[mickey7211]

Hi i was insured with express insurance and in April I moved house I phoned them to let them know about the new address they said no problem we will change it a few days later I got the new certificate and i thought that was that but 6 weeks later I got an other letter saying they cancelled my policy I call to ask why and they said I needed to send in my license I said I did not know this but they said we send you letters which they did not then I get A letter from close finance saying I own them £104 pounds I said I did not own them anything as I had to take out an other insurance plus had drove my car without insurance for 5 weeks not knowing .I now have a letter from a debt management company so I have to pay it. anyone knows what i can do to make them pay me back and get back my money plus compo for driving without insurance

 

thanks

[Old Cogger]

Hi i was insured with express insurance and in April I moved house I phoned them to let them know about the new address they said no problem we will change it a few days later I got the new certificate and i thought that was that but 6 weeks later I got an other letter saying they cancelled my policy I call to ask why and they said I needed to send in my license I said I did not know this but they said we send you letters which they did not then I get A letter from close finance saying I own them £104 pounds I said I did not own them anything as I had to take out an other insurance plus had drove my car without insurance for 5 weeks not knowing .I now have a letter from a debt management company so I have to pay it. anyone knows what i can do to make them pay me back and get back my money plus compo for driving without insurance

 

thanks

 

 

 

 

Debt Management Company???? put a copy up here for peeps to see minus your details etc,

[Old Cogger]

Who owns these Insurance companies which seem to be appearing on these sites with outragous claims , companies never heard of = who is behind them.??

[Old Cogger]

Who owns these Insurance companies which seem to be appearing on these sites with outragous claims , companies never heard of = who is behind them.??

 

 

Ageis grouposay no more.

[Ian Davenport]

I took van insurance out with Express on 13/12/2011. I paid £60.52 as an initial payment which was £36.75 for my 1st month cover and the rest was admin. I then paid £36.75 on 13/01/2012 by DD for my next month. I bought an MPV on Jan 28th 2012 and was told by Express that they do not cover cars so they could not swap from a van to a car. I asked them to cancel the insurance and they told me that I would have to put it in writing as I could not cancel over the phone. I did this and the policy was cancelled on 13/02/2012. That was the date for my next due payment so it worked out fine. I had a text message fromScotcall on 30/08/2012 asking me to contact them urgently. I did this and found they are a debt collecting agancy. They wanted over £90 on behalf of Express Insurance. I called them back, had a go and they said it would be put on hold until I had sorted it out with Express. I then had an email off them, a letter threatening that someone would be calling round to see me and another call on 3/09/2012. In my opinion, the fact that express could not insure my car was a collapse of contractual obligation. Also, as I had paid for Dec and Jan then I had paid for my insurance cover. I accept there may be a cancellation charge for 'admin' but not £90+. Looking through the paperwork, there is a credit agreement and a letter asking me to sign and return. This was never done so that is not really enforceable. Watch this space