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Car Insurance - Missed Direct Debit Payments - Insurance Being Cancelled


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Hi all! Just joined tonight. Thought i would share my experience so that i may helps others in a similar position.

 

I missed my direct debit payments on three seperate occassions with my motor insurance company. Normally they would re-apply for the monies in 5 or so days and at that point the money would be i my account and they would get it. On the third missed payment they wrote to me to advise me that i could no longer pay the policy by direct debit and would have to pay the full outstanding amount of my policy or they would cancel it.

 

I admit that i was in the wrong by missing the payments.

 

I called them to see if there was anyway they would reconsider and let me continue with my dds only to be told no. i advised them that i would be unable to pay the outstanding amount to which i was advised that my policy would be cancelled in 7 days and i would receive a letter advising me of my final payment, which would include a £47 cancellation fee. At this point i advised the operator that he could not cancel my policy within 7 days as 2006 amendment to consumer credit act of 1974 states that you must be given 14 days notice. After advising them on several occassions they cancelled my policy in 7 days.

 

I then sent them the following letter recorded delivery;

 

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

POLICY NUMBER: XXXXXXXXXXXX

NOTICE OF BREACH OF CREDIT AGREEMENT AND CONDITIONAL ACCEPTANCE OF PART OUTSTANDING BALANCE

Dear Sirs,

Further to our many conversations on the phone between the xx/xx/xxxx and xx/xx/xxxx and your letter dated xx/xx/xxxx I am writing to you in response to the cancellation of the afore mentioned motor insurance policy.

Firstly, I would like to advise you that in not giving me the correct amount of notice of cancellation as set out in part 7, section 88, subsection 2 of the Consumer Credit Act of 1974 and subsequent revision within chapter 14, section 14, subsection 1 of the Consumer Credit Act of 2006 you are in breach of part 7, section 87, subsection 1 of the Consumer Credit Act of 1974. You have also breached our Credit Agreement as you will note that at the very top of our Credit Agreement it states “Credit Agreement regulated by the Customer Credit Act 1974.” I would assume this is a typo and should read CONSUMER Credit Act 1974, either that or you have fraudulently claimed that our Credit Agreement is regulated by an act of parliament, an act of parliament which does not exist! Assuming I am correct in the assumption that you have not committed fraud and this is just a typo, then once again I will state, you have breached our Credit Agreement. It is worthwhile noting that I did advise your operators of this prior to my policy being cancelled. As a consequence of this breach I am no longer in contract with you or any other affiliated company with regards to Policy Number XXXXXXX and as such, I am no longer subject to any rules, stipulations, terms and conditions, timescales or penalties which you would normally have the right to apply if the correct cancellation procedure had been carried out legally and lawfully.

With regards to the £xx.xx outstanding balance which you advised me of in your letter dated xx/xx/xxxx I require a breakdown of this balance to assess the validity of your claim. I was advised by your operator XXXXX XXXXX on xx/xx/xxxx that part of this final payment would include a £47.00 cancellation fee. I fully intend to pay for any monies associated with the insurance of my car from the xx/xx/xxxx to the date when my policy was incorrectly cancelled on xx/xx/xxxx however I will not be paying any cancellation fees or any other penalties associated with this cancellation due to your breach of our Credit Agreement. Please forward your breakdown of this cost by return.

Upon assessment of your breakdown I shall advise you of my revised valuation of the outstanding balance which I am generously agreeing to pay you despite your breach of our Credit Agreement and an Act of Parliament.

Please find enclosed my Certificate of Motor Insurance as requested.

I look forward to hearing from you in the near future.

Yours Sincerely

After around a week i got a standard reply saying they were looking into it and that could take up to 8 weeks and they would not attempt to take any monies from me during this time.

 

Around a month and a half later i got a letter saying they were sorry for any bad service i received and acknowledged my points. They stated they were looking into them closely and that all outstanding monies would be waived. They considered the matter closed. They didnt say i was right at any point but i would guess i might have been, why else would they waive the monies?

 

Just thought i would share so that this can be used to peoples advantage. Why should insurance companies think they can do what they want and not follow the law?

 

If anyone wants to know anything else about this send me a message and i'd be glad to help.

 

Cheers!

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Hi all! Just joined tonight. Thought i would share my experience so that i may helps others in a similar position.

 

I missed my direct debit payments on three seperate occassions with my motor insurance company. Normally they would re-apply for the monies in 5 or so days and at that point the money would be i my account and they would get it. On the third missed payment they wrote to me to advise me that i could no longer pay the policy by direct debit and would have to pay the full outstanding amount of my policy or they would cancel it.

 

I admit that i was in the wrong by missing the payments.

 

I called them to see if there was anyway they would reconsider and let me continue with my dds only to be told no. i advised them that i would be unable to pay the outstanding amount to which i was advised that my policy would be cancelled in 7 days and i would receive a letter advising me of my final payment, which would include a £47 cancellation fee. At this point i advised the operator that he could not cancel my policy within 7 days as 2006 amendment to consumer credit act of 1974 states that you must be given 14 days notice. After advising them on several occassions they cancelled my policy in 7 days.

 

I then sent them the following letter recorded delivery;

 

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

 

POLICY NUMBER: XXXXXXXXXXXX

 

NOTICE OF BREACH OF CREDIT AGREEMENT AND CONDITIONAL ACCEPTANCE OF PART OUTSTANDING BALANCE

 

Dear Sirs,

 

Further to our many conversations on the phone between the xx/xx/xxxx and xx/xx/xxxx and your letter dated xx/xx/xxxx I am writing to you in response to the cancellation of the afore mentioned motor insurance policy.

 

Firstly, I would like to advise you that in not giving me the correct amount of notice of cancellation as set out in part 7, section 88, subsection 2 of the Consumer Credit Act of 1974 and subsequent revision within chapter 14, section 14, subsection 1 of the Consumer Credit Act of 2006 you are in breach of part 7, section 87, subsection 1 of the Consumer Credit Act of 1974. You have also breached our Credit Agreement as you will note that at the very top of our Credit Agreement it states “Credit Agreement regulated by the Customer Credit Act 1974.” I would assume this is a typo and should read CONSUMER Credit Act 1974, either that or you have fraudulently claimed that our Credit Agreement is regulated by an act of parliament, an act of parliament which does not exist! Assuming I am correct in the assumption that you have not committed fraud and this is just a typo, then once again I will state, you have breached our Credit Agreement. It is worthwhile noting that I did advise your operators of this prior to my policy being cancelled. As a consequence of this breach I am no longer in contract with you or any other affiliated company with regards to Policy Number XXXXXXX and as such, I am no longer subject to any rules, stipulations, terms and conditions, timescales or penalties which you would normally have the right to apply if the correct cancellation procedure had been carried out legally and lawfully.

 

With regards to the £xx.xx outstanding balance which you advised me of in your letter dated xx/xx/xxxx I require a breakdown of this balance to assess the validity of your claim. I was advised by your operator XXXXX XXXXX on xx/xx/xxxx that part of this final payment would include a £47.00 cancellation fee. I fully intend to pay for any monies associated with the insurance of my car from the xx/xx/xxxx to the date when my policy was incorrectly cancelled on xx/xx/xxxx however I will not be paying any cancellation fees or any other penalties associated with this cancellation due to your breach of our Credit Agreement. Please forward your breakdown of this cost by return.

 

Upon assessment of your breakdown I shall advise you of my revised valuation of the outstanding balance which I am generously agreeing to pay you despite your breach of our Credit Agreement and an Act of Parliament.

 

Please find enclosed my Certificate of Motor Insurance as requested.

 

I look forward to hearing from you in the near future.

 

 

Yours Sincerely

 

 

After around a week i got a standard reply saying they were looking into it and that could take up to 8 weeks and they would not attempt to take any monies from me during this time.

 

Around a month and a half later i got a letter saying they were sorry for any bad service i received and acknowledged my points. They stated they were looking into them closely and that all outstanding monies would be waived. They considered the matter closed. They didnt say i was right at any point but i would guess i might have been, why else would they waive the monies?

 

Just thought i would share so that this can be used to peoples advantage. Why should insurance companies think they can do what they want and not follow the law?

 

If anyone wants to know anything else about this send me a message and i'd be glad to help.

 

Cheers!

 

 

depends on the company, some will waive the o/s as it would prob cost more in man hours etc to investigate. Some companys do operate a 3 strikes policy in regards to missed payments.

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yes i ended up with no insurance, and had to take out a policy with another company, but it worked good for me because it was cheaper than the insurance i had at the time and i also ended up getting a month and a half free insurance from the original company because they waived the charges. Not a big gain but a gain none the less, and it was all down to them not playing by the rules.

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