please please help, car insurance gave me too much now want it back!

[pclarke82]

Ok so i brought a car in april for 3200, i got it cheap as the head gasket was gonna go and i know someone who could repair it. in may i was in a crash (not my fault) and wrote the car off. I told the garage that i paid £3200 for it. 3 days later direct line called telling me the were going to send me a cheque for £5200. i asked them to double check the amount and they did. i have then had two letters confirming the settlement offer of £5200 and a cheque for 5200. i have cashed the cheque and brought a new car for that value. now 6 weeks on i get a phone call saying that a mistake was made and they want 2k back. i told them its gone, they said i should of known the market value of the car. i told them im not a car man so i was just pleased with the settlement and i have got the letter still and there is no money left so they cant have it. they then said as its there fault they will let me off with 1k?? surely this means they havent a leg to stand on so there trying to get anything they can? i said i need to speak to a solicitor as i have no money and need to know my rights. they said ok and i'll speak with them another time.

 

What you guys reckon? do i need to find the cash or is it there problem and tough luck?

[Manny90]

Hello,

 

I think you should be entitled to it under the doctrine of promisory estoppel.

 

"A promisor—one who makes a promise—makes a gratuitous promise that he should reasonably have expected to induce action or forbearance of a definite and substantial character on the part of the promisee—one to whom a promise has been made. The promisee justifiably relies on the promise. A substantial detriment—that is, an economic loss—ensues to the promisee from action or forbearance. Injustice can be avoided only by enforcing the promise." (Promissory Estoppel legal definition of Promissory Estoppel. Promissory Estoppel synonyms by the Free Online Law Dictionary.)

 

Since you acted on the promise and suffered economic loss - paying for the car itself is at no economic loss because the money came from the settlement however things like road tax, insurance, ect are economic loss which have come from your pocket.

 

The only thing that may hinder your action is that you knew the car was worth less so it may be considered inequitable if it goes to court, but I doubt the company will take it to court.

 

 

- Manny90

[unclebulgaria67]

They have no legal basis for asking you for any money. You made a claim and they settled, confirming the amount. You had no reason to disbelieve the settlement value. Direct line would have looked at the book value for the car, before offering settlement. Insurance is to cover market value and not what you paid.

 

So I would just write back, saying that you accepted their settlement of the claim at £5200 representing market value and as far as you are concerned, that is the end of the matter.

 

Tell them that if they have any legal basis to continue to make requests for money, they must state their case using legal terms. Point out that Direct Line could be liable for any sums that you incurred if you had to seek legal advice.

[Wulfyn]

Agreed - they made you an offer and you accepted. You even went as far as asking them to check. They have no rights here that I am aware of.

[Endymion]

You have accepted their offer of settlement and as such a binding contract of compromise has been made.

 

The only get out clause would be that the contract was based upon an error, however, that is a slim hope and because you clarified their offer, I would suggest they don't have a leg to stand on.

[zither]

They are flapping like mad now I`ll bet. The person that sent the cheque to you was probably the person on the phone, realising their mistake is trying to claw it back. Tell them to do one. Politely of course!.