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Debt to insurance company: Now with CRS (DCA)


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Hi, i'm here for some advice on how I should proceed with this so called "debt".

 

I took out an insurance policy with an insurance broker, paying by direct debit. When I stopped driving the car (after 3 months of cover), I cancelled the policy and stopped direct debits, letting the insurance company know this. At this point I had paid for all the time I was on cover and in fact, they owed me for cover I'd paid for that I hadn't used.

 

To them though, I owed them £30 for cancellation fee, plus further costs for "add-ons" on the policy (E.g. legal expenses), equating to nearly £80. Baring in mind the annual premium was less than £200, I was reluctant to pay this £80 so readily.

 

I worked for an insurance company who used to try and enforce these fees, but couldn't and would send numerous threat letters and after a while would give up. I thought this insurance company would take the same approach, however, I've received a further letter saying they've added £25 to my debt (which they've failed to quote the amount of in this latest letter) and will pass on the debt to Credit Resource Solutions if payment isn't received within 7-days.

 

What I'd like to know is; could I get a CCJ from this debt? Since;

 

1. I took the policy out over the internet

2. I never took out Credit from this company, so there was never a credit agreement

3. When taking out the policy I agreed to a £30 cancellation fee, but not the rest of it.

 

If they'd approached me for £30, I'd happily pay. But this is nearing extortion, baring in mind they've only lost out on commission by me cancelling my policy, not £80.

 

They've also given me 7-days to respond before they pass the debt on, is there anyway I can halt them from passing it on, that doesn't involve me settling the "debt"?

 

Can anyone help? I could really do with some :???:

 

Thank you!!!!

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Just checked the letter again and it was sent on 28th November, but didn't arrive until sometime between 6th and 10th December (was away from home for those days). So the debt is now officially with Credit Resource Solutions.

 

Am I covered by Consumer Credit Act, even when this wasn't even credit?

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I am pretty sure you are covered by the consumer credit act. You could tell them you are going to take your case to the Financial Ombudsman (bear in mind the Ombudsman will charge them £450 to investigate your complaint !!!)

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Hi Flooty

 

To be quite honest I think your clutching at straws.

 

Read your smallprint ! it will say that if you cancel policy you will have to pay balance to nearist month ( words to that effect ) you used to work for an insurance company? who sent threatograms cos they knew they could not request payments?

 

Pay them what you owe them and move forward, simple really.

 

Mr, non condone of debt evasion

Regards..Mr Worried :)

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Thank you for your advice, maybe I wasn’t clear. There is no real evasion going on here. My evasion was only a result of their attempt at extortion, as I feel I’m being extorted for something I don’t owe.

 

To clarify; I took out the policy with the condition that if I cancelled I paid £30, this was clear as day on there website when taking it out. What wasn’t and still isn’t clear is the costs above £30. I was prepared to pay £30 willingly on cancellation (as I had every intention of cancelling before renewal), so I made sure I checked the fees I would be paying if I were to cancel.It wasn’t until they managed to turn a £30 fee into a £75+ fee, when I thought “I don’t owe them that much, this is extortion, they can take a run and….”.

 

I made this decision based on my experience with a previous employer (another insurance company) and how they dealt with customers who don’t pay their fees. I’ve since learned not all insurers follow the same practices and it was a slack assumption to make, which has really just made the situation worse (I’m young and learning). In hind-sight, I wish I’d just sent them the £30 I did owe (and agreed to) and let them pursue the rest if they felt like it.

 

They’ve now passed on the debt to CRS, who’ve made several attempts to contact me. They’ve tried my house phone (automated phone call), mobile phone text (automated, no response number) and email (automated). But nothing has arrived in writing yet. I’m tempted to wait until I receive something in writing before I take action, as this all seems very unprofessional on all fronts (including myself) and I wish to highlight this to OFT and FOS (about the companies ofcourse).

 

I do regret not paying the insurance company what I believe I do owe (£30). Is there any point in doing it now, now that they’ve sold the “debt” on?

 

Mr Worried – thank you for your advice and sorry I didn’t explain myself properly. I do take on-board your small print comment, but I did read all this before accepting the policy. Let’s just say I misread something and in fact there is some small print giving them the right to request these additional costs, does that give them the right to add on £25 late fee charges as and when they want? To me, that is another sign of their unprofessional approach, but I’d like to hear your opinion if you’d care to share it. Another question I have would be; why make so clear there is a £30 cancellation fee, but not make anywhere near as clear the other fees? Isn’t that misselling (especially with Treating Customer’s Fairly (TCF) being a huge topic for the FSA)?

Edited by flooty
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This is just another lesson to learn, it is important to read the 'small print'. On a similar line, there was an article on Watchdog recently in connection with Pet Insurance. Several people whose pets had sadly passed away, claimed their 'final' vets bills' and stopped paying the premiums. The Insurers promptly wrote back on each case and said they did not have to pay out until the full annual premium had been paid, so it turns out that although you are granted the facility to pay by installments, cover ceases when one of these payments is missed as the criteria is that the premium must be paid in full at commencement, the installments are a 'facility' to spread payments and not a monthly premium. Hope that makes sense.

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This is just another lesson to learn, it is important to read the 'small print'. On a similar line, there was an article on Watchdog recently in connection with Pet Insurance. Several people whose pets had sadly passed away, claimed their 'final' vets bills' and stopped paying the premiums. The Insurers promptly wrote back on each case and said they did not have to pay out until the full annual premium had been paid, so it turns out that although you are granted the facility to pay by installments, cover ceases when one of these payments is missed as the criteria is that the premium must be paid in full at commencement, the installments are a 'facility' to spread payments and not a monthly premium. Hope that makes sense.

 

Thanks harassed senior. I think you misunderstood my post; probably because of my lack of paragraphs. I've spaced it out properly now.

 

I've always known insurance to be the way you've described above. If you make a claim, you have to pay the whole year's premium upfront (or it is deducted from settlement). It is a measure taken to prevent fraud.

 

I never made a claim, and paid for every day (and more) I was on cover.

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Mr Worried – thank you for your advice and sorry I didn’t explain myself properly. I do take on-board your small print comment, but I did read all this before accepting the policy. Let’s just say I misread something and in fact there is some small print giving them the right to request these additional costs, does that give them the right to add on £25 late fee charges as and when they want? To me, that is another sign of their unprofessional approach, but I’d like to hear your opinion if you’d care to share it. Another question I have would be; why make so clear there is a £30 cancellation fee, but not make anywhere near as clear the other fees? Isn’t that missellinglink3.gif (especially with Treating Customer’s Fairly (TCF) being a huge topic for the FSA)?

 

Hi Flooty

 

There was nothing wrong with your explanation however this area is a minefield of ifs and buts, I had the same problem myself a few year ago, I requested an explanation as regards their cancellation charges, that was the last I heard from them. I always base my help and advise to other caggers from my own personal experiences as others do for me.

 

So on that note flooty I cant assist anymore, good luck with your research to find a resolve.

 

Mr, Wish I could help more.

Regards..Mr Worried :)

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Please correct me if I am wrong, but what sort of insurance policy was this? As from any policy I have had previously it has always been a 12 month policy and regardless of whether I drove the car for the full 12 months or not was irrelavent to the insurers as they were expecting the full cost of the quote/insurance period.

 

However I am fully with you that if you were able to cancel this policy after three months use and did not make a claim, and they state that it will only cost you £30 in cancellation fees, anything above this is their attempt to fleece you!

IMO I would pay them (Insurers) the £30 fee and then ignore anything their tame DCA sends you. CRS are inept at the best of times!

Who ever heard of someone getting a job at the Jobcentre? The unemployed are sent there as penance for their sins, not to help them find work!

 

 

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Please correct me if I am wrong, but what sort of insurance policy was this? As from any policy I have had previously it has always been a 12 month policy and regardless of whether I drove the car for the full 12 months or not was irrelavent to the insurers as they were expecting the full cost of the quote/insurance period.

 

However I am fully with you that if you were able to cancel this policy after three months use and did not make a claim, and they state that it will only cost you £30 in cancellation fees, anything above this is their attempt to fleece you!

IMO I would pay them (Insurers) the £30 fee and then ignore anything their tame DCA sends you. CRS are inept at the best of times!

 

BB - I'm very nearly with you on this one. However in addition to the £30 cancellation fee of the insurance policy, the OP had also voluntarily opted to add legal protection and maybe other things (breakdown cover etc...). As he had had the potential benefit of these for 3 months I believe he should pay the £30 + 1/4 of all the additional voluntary expenses.

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This is going to make me unpopular and MY VIEWS ARE NOT SHARED BY THIS SITE, but personally I see no difference between insurance and debt collecting NONE.

 

They are just as perverse as each other, policys not worth the paper they are written on, contracts that extract silly amounts just for cancelling.

 

12 month contracts are everywhere gyms, mobile phones, internet TVetc.

 

Okay at some point they will get banned as being unjust and they will have to find other ways to extract money out of us but back to the present I would never advocate not paying because all they do is simply charge the rest of us more to cover people who don't pay, like I said perverse.

 

okay so don't deal witht the DCA pond life thats a given.

 

I recommend ringing up the insurnce comapny telling them that they can stick there DCA **** up there ar*e the only money they are going to get out of you is a £1 a month, nor are the insurance company going to get the full amount plus stupid charges the best way forward is we both agree a price that is fairer say 25% because 25% is better than £1 a month. I mean what is the admin costs on that alone? See what they say to that

We live in an unmoderated country why should the net be any different?

Bring back free speech we miss it!

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This is going to make me unpopular and MY VIEWS ARE NOT SHARED BY THIS SITE, but personally I see no difference between insurance and debt collecting NONE.

 

They are just as perverse as each other, policys not worth the paper they are written on, contracts that extract silly amounts just for cancelling.

 

12 month contracts are everywhere gyms, mobile phones, internet TVetc.

 

Okay at some point they will get banned as being unjust and they will have to find other ways to extract money out of us but back to the present I would never advocate not paying because all they do is simply charge the rest of us more to cover people who don't pay, like I said perverse.

 

okay so don't deal witht the DCA pond life thats a given.

 

I recommend ringing up the insurnce comapny telling them that they can stick there DCA **** up there ar*e the only money they are going to get out of you is a £1 a month, nor are the insurance company going to get the full amount plus stupid charges the best way forward is we both agree a price that is fairer say 25% because 25% is better than £1 a month. I mean what is the admin costs on that alone? See what they say to that

 

I don't see why that will make you unpopular. However, the insurance company will and can legally make it very hard for you to get lawful cover again. You may get cover that stops you being stopped when you drive past a police car with ANPR camera installed, but if you have a crunch and need the insurance you may well find your policy invalid.

 

If you're honest and tell the insurance companies the truth of what has happened, your premium will shoot through the roof.

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Hi All

 

Like I said ' Can Of Worms ' this thread should have stopped at post 4, however I think the advice from the bottom of the barrell will still flow and because of that I unsubscribe because I have learned nothing past post 4. IMO of course.

 

Mr, Moving on.

Regards..Mr Worried :)

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Flooty

 

Just make an official complaint in writing to the Insurance company, which will stop them pursuing you for the debt whilst it is being investigated. If they are not able to resolve after 8 weeks, then take this to the FOS, who could take 6 months or more to look into it.

 

Because the FOS will charge the Insurers a £500 case fee, the chances are that the Insurers will make a commercial decision just to charge you the basic cancellation cost, which will be a time on risk for the days on cover, plus the £30 fee. But to get to the position you will have to exhaust the Insurers complainst process. Send your written complain by recorded delivery.

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