RAC compensation query

[xanimalx]

I recently discovered thst the RAC have been taking money out of my account for 7 years on an annual basis.

I realised this, when I went to close my bank account down and they went through a list of my direct debits. The RAC were taking £85 from my account once a year in January. How did I not realise I hear you ask?

Well my excuse is, it was in January and I tend to skim over or totally avoid looking at Januarys statements due to overspending at Christmas!

Anyway, I did have RAC cover many years ago but back in 2003 I phoned due to having broken down in the car only to be told I had no cover. I assumed that I had not signed a renewel form or something and just thought it was bad luck on my part.

I phoned them as soon as I knew they were taking money and they still couldn't find me on the system under my maiden or married name, and not at any of my previous addresses.

I explained the situation to the lady and she said she would look into it and get back to me which she did a week or so later.

She said she had found my policy, but it was under the name of A Tower. Well my name is Turner so she thinks that when the policy was taken out it must have been a spelling mistake on their part.

She admitted that there had been no policy renewels sent to my address and that they had been taking the money since 2004.

She said that I needed to provide bank statements from 2003 and 2004 both in my maiden and married name and in the address I lived at during that time. Needless to say I didn't have bank staements from 2003 so had to request them from my bank at a cost of £5. This took almost a week to come through. I sent them recorded delivery and waited 4 days and still hadn't heard from the RAC.

I phoned them and spoke to the same lady (very nice) and she said she hadnt recieved them, she went looking and eventually they turned up.

She said she would pass it over to the refunds team and they would refund approx £490 and it would take up to 15 days!!

First off 7 x £85 does not make £490 and what's with the 15 days?

They are quick enough to take your money.

Anyway I said I felt compensation was due because of the time I had broken down and they didn't help me. Not to mention the interest they have been earning on my money for 7 years and the enless phonecalls I have made to sort this situation out.

She said she didn't think I was entitled because although they were at fault, I should have checked my bank statements.

I wrote a letter to the manager of the refunds department and explained everything from start to finish.

Another week went by, I had a meesage on my mobile from someone at RAC while I was at work. I tried ringing back, in a que for 15 minutes on a mobile. He was busy, had to ring me back. This went on and on so I kept ringing and leaving messages each one with my voice getting more and more high pitched due to sheer frustration.

Eventually he rang me and said he had posted a letter today and that I would be getting a refund of £560, this includes £5 for the bank statements, £1.52 for the recorded delivery and nothing else.

I said to him they had let me down when I needed them most having broken down on the motorway, earnt interest on my money for 7 years and that my husband had actually taken out another policy to cover the both of us, costing 16 per month.

He said all he could do was offer us two months free cover.

I'm not happy with this at all.

I was wondering if anyone can tell me if they think this is acceptable or if I am entitled to more.

The whole thing has taken over a month to sort out, and I still haven't recieved a cheque from them.

Any help or advice would be gratefully recieved.

Thanks for taking the time to read this.

[raydetinu]

I would also speak to your bank, did they have a sgned dd from the rac authorizing them to take the money!

Yep you should check statements with a fine tooth comb, a lot of fraud about these days; been a victim on many occasions.

[crem]

I would also speak to your bank, did they have a sgned dd from the rac authorizing them to take the money!

 

 

This wouldn't prove anything one way or the other using modern systems. If you read most DD forms that you sign now, it usually says something like "this form may be retained by us and the request sent to your bank by electronic means". So the bank may never receive the actual paper copy authorisation and simply rely on you challenging any unauthorised DD that shows up on your statement.

[xanimalx]

My biggest gripe is that they have made interest from me with my money. And they never sent out letters to confirm that my account will be renewed they even admitted this them selves.

[raydetinu]

That it clearly not correct, if the bank does not have a signed DD submitted you can ask them to refund it, have done this a few times. They have not got your authorisation to let somebody take money from your account unless you agree to it. I know it happens and if you are happy its ok.

Also anybody that uses the information to use a DD to do renewal by default, they must inform you in writing before hand so you can cancel it and if they have not done so, you must get a full refund with interest.

[Mossycat]

Hate to say this but the RAC may well have a valid argument regarding payment of interest.Firstly, you have clearly falied to be dilligent regarding payments that were taken from your account, I'm not for one minute saying I agree with automatic renewals, but I am saying that for a number of years you allowed (by failing to notice) payments to be taken from your account.The RAC have agreed to refund the money taken back to you, the problem you will have is in trying to convince the Court that you are entitled to interest.Section 15 won't apply because there wasn't one single date or occurence, so if the RAC can show the Court that as soon as you asked for a refund they actioned it then I think they have a very good case to argue that interest shouldn't be paid in this instance.Mossycat

[raydetinu]

No harm in asking, not worth going to court over if at least they refund all the payments.

Due diligence lacking by both sides really!

[xanimalx]

Hate to say this but the RAC may well have a valid argument regarding payment of interest.Firstly, you have clearly falied to be dilligent regarding payments that were taken from your account, I'm not for one minute saying I agree with automatic renewals, but I am saying that for a number of years you allowed (by failing to notice) payments to be taken from your account.The RAC have agreed to refund the money taken back to you, the problem you will have is in trying to convince the Court that you are entitled to interest.Section 15 won't apply because there wasn't one single date or occurence, so if the RAC can show the Court that as soon as you asked for a refund they actioned it then I think they have a very good case to argue that interest shouldn't be paid in this instance.Mossycat

 

I dont even think that RAC can even give me a copy of the DD agreement. And why shall I or anyone who is told that you do not have an account with RAC be checcking to see that they are taking payments from my bank account yearly.

 

When I needed help they could not help me. Even after giving them my address they still could not help me out.

 

They should at least pay me the interest they have earned on my money back to me.

 

I shall ask them tomorrow or Monday for the copy of my DD inwhich I will be very suprised that they will have it.

[Mossycat]

As has already been said there is no harm in asking for interest, but if they refuse then I think you will find it difficult to convince the courts that you are entitled to it.

 

If the RAC offer to refund monies taken then that would satisfy their obligations to you, it may sound a bit harsh given that they have had your money for quite a few years, but the onus was on you to be aware of what was going out of your bank (test of reasonableness).

 

Mossycat

[raydetinu]

Again maybe worth checking with your bank to see under what authorization they were allowing the RAC to take the money and they should refund you.

I have done this in the past and refunded within days. They are are supposed to be looking after your money and not let people just take it willy nilly.