Is it legal to send a DN just for cancelling a DD (all payments completed)

[dx100uk]

but you didn't specifically tell them to cancel the renewal

 

 

 

 

dx

[ThedaBara]

but you didn't specifically tell them to cancel the renewal

 

 

 

 

dx

 

They wrote and told ME it was cancelled after I stopped the direct debits… but not before they had raided my bank account for the Contents Insurance, and when I placed a block on them, because i knew they'd try to do the same with the Buildings Ins., they wrote and told me they had 'served' a default notice, (although I have yet to receive it)… TB

[ThedaBara]

I certainly haven't signed anything for the renewal of 'contract', if that's what it amounts to…I don't see that they can accuse m of default… I don't owe them anything… or at least I didn't think I did, but they seem to be treating this as a loan… TB

[dx100uk]

well as long its got nowt to do with CAR insurance

whereby they can and do rollover if you don't cancel

 

 

no totally unlawful to auto roll contents or building without you agreeing.

 

 

go get 'em.

[ThedaBara]

Many thanks, DX.

TB

[TSx]

well as long its got nowt to do with CAR insurance

whereby they can and do rollover if you don't cancel

 

 

no totally unlawful to auto roll contents or building without you agreeing.

 

 

go get 'em.

 

Out of interest where do the different legal authorities come from?

 

The contract you agree to for both (household and motor) will contain a provision for auto-renewal. Good practice dictates they refund your premium if you provide evidence that you are dual insured - have you explained you've had two lots of insurance accidentally? it's usually fairly straightforward to sort out

[dx100uk]

theres something about motor insurance that allows them to rollover

it doesnt extend to any other type.

 

 

dx

[ThedaBara]

This is the email they sent me after I stopped paying the direct debits…

 

Thank you for your email.

*

I can see from your file and from your email that you had cancelled the direct debits in order to stop the renewal from proceeding.

*

As you pay by monthly direct debits you entered into a loan agreement and as per terms and conditions of your policy payments cancelling the direct debits does not cancel the policy.

*

Instead it allows us to retrieve the missing payments or outstanding balance from your account.

*

I have cancelled the buildings and contents policies from today.

*

As it stands the £71.31 taken was the full yearly contents policy payment so far £22.84 of this has been refunded.

The buildings policy will still at this time have an outstanding balance of £101.17.

*

The underwriters will require proof that another insurance policy was taken in order to backdate your policies to receive any additional refund.

*

What do you think… can they make me pay, even though they have cancelled both policies? TB

[ThedaBara]

Out of interest where do the different legal authorities come from?

 

The contract you agree to for both (household and motor) will contain a provision for auto-renewal. Good practice dictates they refund your premium if you provide evidence that you are dual insured - have you explained you've had two lots of insurance accidentally? it's usually fairly straightforward to sort out

 

I was going to find a better quote after cancelling with the AA… but this business where they took the whole year's premium for the contents insurance has left me without the funds to go elsewhere… I don't have any savings and am on a low income… I'm worried that they will insist on taking the buildings premium as well.

 

I am currently uninsured and that's really worrying. I even agreed to continue with them until the end of the term if they will re instate my cover, but they have refused. TB

[ThedaBara]

theres something about motor insurance that allows them to rollover

it doesnt extend to any other type.

 

 

dx

 

Hi again, DX... I've just received this...

I was wondering if, perhaps, I should get the FOS involved.

 

 

I have tried to resolve things by asking for them to reinstate my cover in return that I continue with the payments, but they have not agreed to this, it seems..

 

 

. they want the money but don't want to continue covering me..

. I can't afford to pay another insurer as well as them, so now I'm uninsured.

 

 

The other thing I don't understand is when they say Direct Debit payments are taken 59 days in arrears... I don't remember waiting a couple of months before starting payments... I just don't know what to do now... TB

 

Dear ThedaBara

 

The details of your concerns regarding your AA Home Insurance have been passed to me for review and response.

I understand you feel that you did not agree to the automatic renewal of your buildings and contents insurance and as a result, you are unhappy that we have debited payment from your bank account and have advised you that you still have an outstanding balance to pay.

 

Having investigated this matter,

I can see that you purchased the buildings and contents insurance online on 8 February 2014.

You agreed to the automatic renewal and instalment agreement during your online application process and selected to pay for the cover using our monthly instalment payment. Payment is collected 59 days in arrears when paying via monthly direct debit.

 

I confirm that renewal documents for both your buildings and contents insurance were issued to you on 11 January 2016, followed by a renewal confirmation letter on 3 February. In addition to this, on 5 February a copy of your AA Instalment Credit Agreement was issued to you advising you of the terms of the agreement.

 

It is important to note that you are required to contact our Insurance Department either by post, email or letter to request for your policy to be cancelled. Cancelling a direct debit mid-term is a breach of the AA Instalment Credit Agreement and will not result in the immediate cancellation of a policy.

 

Our system confirms that a default letter was sent to you dated 9 June in regards to your buildings insurance and on 15 June in regards to your contents insurance. The letter dated 15 June explained that in line with the terms of your instalment agreement, we would collect the full balance of £71.31 for your contents insurance on 5 July.

 

In view of my findings, I am confident that you were notified in advance of our intention to renew your insurance and that you had ample opportunity to contact us. I am therefore, unable to uphold your complaint although I do apologise for any disappointment caused.

 

The premium we have retained for your contents insurance is correct and in accordance with the terms and conditions based on the period of insurance provided to you. In addition to this, as payment is collected in arrears and because we did not claim the full balance for your buildings insurance, you do have an outstanding balance to pay to ensure you have paid for the period of cover provided. Please contact our Accounts Department on 0370 405 0003 to discuss this further.

 

To fulfil our regulatory requirement, I am obliged to inform you that I will close my file, however, if you would like me to address any additional matters, please let me know using the contact details provided. You have the right to refer your complaint to the Financial Ombudsman Service, free of charge. Although there are time limits for referring your complaint to the Ombudsman, we will consent to the Ombudsman considering your complaint even if you refer the complaint outside the time limits. Please refer to the below hyperlink for further details if required.

 

http://www.financial-ombudsman.org.uk/

 

While I appreciate that this may not be the answer you were looking for, I trust I have explained the AA' s position on the matter. Thank you for allowing me the opportunity to investigate your concerns and issue a response.

 

Yours sincerely

 

 

Rachel Minall

Special Investigations Executive

[dx100uk]

yes i'd escalate it.

 

 

dx

[ThedaBara]

yes i'd escalate it.

 

 

dx

 

Thanks… can't make it any worse, I suppose. I spoke to my bank today and explained everything, and they will put the money back into my account whilst I await a decision from FOS. TB

[dx100uk]

hey good news

[ThedaBara]

I look forward to having some money for essentials...

[D.H AA Rep]

AT LAST!! This is the thread I've been searching for...

 

Relating to the legality of issuing default notices for cancelled DDs in relation to auto renewal of insurance...(It's the AA... surprose, surprise).

 

They have actually raided my bank account via my debit card and left me without the means to pay for essentials... I'm on a very low income... 6k a year. I can't afford to lose £70.

 

I believe the contract is for one year and that they should at least obtain a signature before they renew insurance for a further period of time... otherwise, they are saying they have an open ended contract... there is no such thing.

 

OK... so it seems I should contact the CEO... I'll give it a go. & maybe fill in a form to the FCA as I know they are currently looking into this abuse of process...

 

Thanks! TB

 

Hello, we'd really like to help address this. Please email the details to [email protected] Reference FOR193973 including your full name, membership/policy number and contact details and we'll get this investigated as soon as possible. Kind Regards