HELP! Gladiator Insurance- unfair cancellation charge

[piningirl]

Can someone help please? I run a self employed delivery business with my own van. I had insured with the company Gladiator for two years. The first year I paid by a lump sum, the second year went on intallment,direct debit. When this year's renewal came, I decided not to renew as premium increased more than I expected. So I cancelled my direct debit instructions and assumed it will be cancelled as they cannot collect money.

20 days after they wrote to me saying I owe them money demanded payment. After a few to and fro, I discovered the policy was on automatic renewal, they had say so on the renewal notice but I did not notice it as I thought non payment meant non renwal.

Anyway, I cancelled it but they said I own them over £300. The amount includes 20 days of insurance and a admin charge. The original premium was £1200, can they charge me 1/4 of the amount for cancelling? They threaten if I do not pay, they will pass it to debt collectors and the amount will keep adding on! What can I do? They are blatantly ripping me off! Please help.

[sir_gilmour]

Hi piningirl

Welcome to The Consumer Action Group.

 

 

I am just letting you know that as you haven't had any replies to your post yet, it might be better if you post your message again in an appropriate sub-forum. You will get lots of help there.

 

Also take some time to read around the forum and get used to the layout. It is a big forum and takes a lot of getting used to.

 

 

Once you start to find your way, you will soon realise that it is fairly easy to get round and to get the help you need.

 

It can be bit confusing at first.

[unclebulgaria67]

You need to write to them to apologise for your mistake in not realising you had to contact them to cancel. Send them a copy of the new policy certificate, showing you have cover arranged elsewhere.

 

Hopefully they should accept your mistake and cancel from renewal, without anything owing.

 

If you are unlucky, they will say it is not their problem and ask you to pay. If this is the case, you should think about making a formal complaint threatening to go to the FOS. If you went to the FOS, 8 weeks after not resolving with the company, they would get charged a case fee of £500 and it would cost you nothing. Also the good thing about making a complaint and entering into a dispute, is that they should not then pass for Debt Collection. As you will note from the Debt forum, it is against the OFT's rules for Debt companies to take on debts that are in dispute with the original creditor.