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

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I've come to the end of my year's car insurance, I've moved elsewhere and cancelled the direct debit.

 

Swinton have served me with a default notice.

 

I'm just wondering what everyone's views were as to the legalities of such a move - afterall, I'm not in breach of any payments.

 

Weird.

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Cant default you if youre fully paid up. Could it simply be an automated letter?


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but did you inform Swinton you were moving insurers , as far I I remember they automatically renew unless you contact them

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but did you inform Swinton you were moving insurers , as far I I remember they automatically renew unless you contact them

 

Sure did. I've read enough horror stories.

 

I also saved over £500(!)

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This should not be a default notice re CCA, as that would be wrong.

 

What Swintons do, which I think is very questionable is to collect the first months premium before renewal, as a deposit for the next years Insurance. This is assuming that you are renewing the policy, even though you may not want to. So cancelling the DD is preventing them from collecing this deposit.

 

I am surprised that the FCA have not stopped them doing this. I can't believe that it would be legally compliant to do this.

 

You need to make a formal complaint to Swinton head office and make sure they have not notified your credit records.


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Yeah it's CCA as per s87(1). They had a pretty harsh call at 9 when they opened.

 

I'm not reinstating the d/d as they've had all of their payments. As far as I'm concerned I have performed the full obligations under the contract.

 

If they touch my credit file they'll be making a very serious error.

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Yeah it's CCA as per s87(1). They had a pretty harsh call at 9 when they opened.

 

I'm not reinstating the d/d as they've had all of their payments. As far as I'm concerned I have performed the full obligations under the contract.

 

If they touch my credit file they'll be making a very serious error.

 

In my opinion this process that Swinton have in place cannot be compliant with ICOBS or Consumer Credit law.

 

As you say, your only obligation is to pay the premium for the year. Swinton cannot commit you to renewing the policy, by taking a deposit premium. They cannot issue a default notice for not wanting to pay this deposit, as you are not in default.

 

Because of the silly complaints regime with the FCA not taking complaints directly, I suspect most people don't bother going down the FOS route. Therefore Swinton just carry on doing this and I suspect that they retain customers who did not really want to stay with them.


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On a related note, I was told by my motor insurers that all companies automatically renew policies every year because it is the law that you must have insurance. They were going to take the full year's payment using the card information they were given the year before.

Are they telling the truth that all motor insurers have a legal duty to renew automatically unless they receive a written instruction in advance?

I am perverse enough to change policy when I feel I am being bullied, so I switched company, but I would be interested to know the law.

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They offer automatic renewal, as that is seen as a good thing. It stops people being uninsured, because they forgot to renew. But it is not a legal requirement to accept automatic renewal. Insurers will kick up a fuss and say they can't take off the auto renewal function. It is up to you as the registered keeper of a vehicle to make sure you have Insurance. You don't have to supply your new Insurance details, before the previous company will cancel their policy.

 

As far as I know the new laws are all about the registered keeper of a vehicle maintaining Insurance. I don't think there is anything saying that Insurance companies are legally required to automatically renew Insurance policies. If an Insurance companies tells you this, ask for specific law that applies not just 'continuous Insurance Enforcement'.

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Because of the silly complaints regime with the FCA not taking complaints directly, I suspect most people don't bother going down the FOS route. Therefore Swinton just carry on doing this and I suspect that they retain customers who did not really want to stay with them.

 

It's not the FCA's job to deal with complaints - hence the reason why the cannot be complained to. I know some people say well it's possible to still inform them, it's kinda true - though they just pass info elsewhere. The firm I work for is involved in a couple of projects with the FCA at the mo, so far they seem more on the ball than the OFT :)

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Sequenci

Silly question I know but how much are they asking for?

I suppose the insurance was taken out under a credit policy i.e split payments .

 

You know of course what I would do, formal complaint then off to the FOS. I agree with you about the FCA although I do often just copy them in or send a quick email saying company X (or MMF) are sh1te and should have their licence removed because .....


Any opinion I give is from personal experience .

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Sequenci

Silly question I know but how much are they asking for?

I suppose the insurance was taken out under a credit policy i.e split payments .

 

You know of course what I would do, formal complaint then off to the FOS. I agree with you about the FCA although I do often just copy them in or send a quick email saying company X (or MMF) are sh1te and should have their licence removed because .....

 

 

This happened to me a few years back with AA insurance, renewal quote was too high so insured elsewhere, so cancelled DD and received a DN for 1 missed payment on the rollover con.

 

 

Made a big fuss wrote to the CEO got a compo payment.

 

 

BTW from what I a seeing here and elsewhere the FCA is acknowledging individual complaints, and in one case has acted almost immediately, this may become public at a later date I think.


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Sequenci

Silly question I know but how much are they asking for?

I suppose the insurance was taken out under a credit policy i.e split payments .

 

You know of course what I would do, formal complaint then off to the FOS. I agree with you about the FCA although I do often just copy them in or send a quick email saying company X (or MMF) are sh1te and should have their licence removed because .....

 

They're not asking for anything other than the reinstatement of the d/d. I'm not going to do it as I don't owe them any money(!)

 

By the way, I'm not sure if you're still around the West Midlands - but we're recruiting again.

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BTW from what I a seeing here and elsewhere the FCA is acknowledging individual complaints, and in one case has acted almost immediately, this may become public at a later date I think.

 

They do act on the info given by passing it recording the info they get + passing it over (where relevant) to organisations more suited to dealing with the issue at hand.

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They're not asking for anything other than the reinstatement of the d/d. I'm not going to do it as I don't owe them any money(!)

 

By the way, I'm not sure if you're still around the West Midlands - but we're recruiting again.

 

 

Thanks for the info but I start at Uni at the end of sept.

I really am not sure how a DN can be issued for that. Surely that is an abue of process. Complain complain complain but you know im a stroppy B


Any opinion I give is from personal experience .

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Thanks for the info but I start at Uni at the end of sept.

I really am not sure how a DN can be issued for that. Surely that is an abue of process. Complain complain complain but you know im a stroppy B

 

 

 

 

Looking through records here and elsewhere this is very common indeed particularly with insurance on credit and "subscription" accounts for collectables and magazines.


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It does seem strange. I'll certainly complain if they actually place the default on my file. I'll, of course, keep you all posted.

 

Fletch: Good luck with uni, what are you studying? Which uni are you off to?

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We had the issue where we were paying instalments and then paid off the balance in one payment so nothing owing. Cancelled the DD and next moment got threatening letters that insurance will be cancelled! Took several phone calls to resolve. Outcome was that we went elsewhere and saved about £50.

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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.:-x

 

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

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Get a chargeback via your debit card as it was an unauthorised transaction. Don't let your bank say no


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

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Thanks renegadeimp... I have tried that and the bank is saying they need to wait for investigations to be completed...it's been a while now. TB

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They can refund immediately then investigate. The creditor will always say the transaction is legit


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

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did you inform the AA you were moving elsewhere


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did you inform the AA you were moving elsewhere

 

Hi… yes, I did tell them I was looking for a cheaper quote, but I can't afford to pay twice… they have taken the money up front for the whole year but cancelled my policy… so I've paid but am no longer insured.TB

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They can refund immediately then investigate. The creditor will always say the transaction is legit

 

 

Perhaps I should nag for reimbursement… then at least I can get alternative cover… TB

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