XS Direct 3k Total Excess - Worried regarding Debt Collectors

[unclebulgaria67]

If it were me, i would not want to play games. You are doing what you did before. Not escalating your complaint to buy yourself a few months of peace and then worrying 2 months later when you are threatened with debt collection. Seems like a head in sand opportunity is taken whenever this is an option.

 

Suggest you escalate your FOS complaint NOW and that should put debt collection on hold for a few months. If your complaint is not upheld, then offer XS direct the £20 a month. If you start paying, it will be end of year or start of next. As i say, it will be difficult for them in regard to £20 a month, but given no repayment terms offered in policy terms, then they don't have much legal argument to require anything more.

[unclebulgaria67]

Just had a thought when looking at threads.

 

If the FOS reject your complaint and don't make any mention of how the £3k is to be repaid, just saying that is between parties to negotiate. If XS Direct reject your offer of £20 a month, then why not start a new FOS complaint, on the specifics of the £20 a month offer being rejected. In theory it would be a new complaint issue. The FOS might say it is a continuation of previous complaint, but if they don't deal with repayment terms, then why should they not look at it. The FOS should be looking out for consumer interests.

[unclebulgaria67]

hello just gone through your post even i got same problem from xs direct asking me to pay £1485 and insurance was mis sold to me never explained about excess properly and when i ask them can i pay £50 a month they refused and told me you can only pay 10 month £148 a month and they told me if they dont recieve first payment by 1 dec 2017 they will send it to debt collection

 

Sent to Debt Collection means absolutely nothing.

 

They can move your debt paperwork down to the local fish chip shop to wrap cod and chips in and they would have about the same level of authority.

 

Debt collectors do not have any powers.

 

They simply try to come to payment arrangement with you and if you don't then it is up to xs direct what they want to do.

 

If you are happy you owe a debt for the amount stated, it is your choice whether you want to pay them.

If you do, then there is no requirement to agree with any repayment schedule.

If you can only afford £10 a month, that is all you have to pay, no more.

The xs direct policy had no repayment terms in their policy contract, so the repayment amount is your choice.

 

If you refused to pay a debt at all,

then it would be up to xs direcf to issue a court claim against you and if you got a CCJ,

you just apply to pay affordable regular payments.

[unclebulgaria67]

Given that the FOS are taking so long, I would think they must be giving the complaint real thought.

 

A £3000 all sections excess with no repayment terms and just a threat to ruin a consumers Insurance life by cancelling as well as employing debt collectors, must be a concern. Is this policy really suitable for the consumers who are buying it ?

[unclebulgaria67]

If your complaint to the FOS is not upheld by their investigator, you can ask for it to be elevated to an actual Ombudsman. The fact it is taking so long, must mean that the FOS think you have a point.

[unclebulgaria67]

That is just a rubbish response. Elevate the complaint to the actual Ombudsman making the same points as before and that the adjuducator has not responded to the points made. Of course the FOS cannot change the policy terms, but they can rule on whether the terms are fair to consumers.

[unclebulgaria67]

If you have to pay offer affordable repayments, say £25 a month, which would be 10 years to repay if it were £3000. Given no repayment terms in the policy wording, they can't really argue.

[unclebulgaria67]

Yes, but the OP might want to avoid a CCJ and the hassle. If they offered £25 a month, then the Insurers are going to probably reject that and the OP just replies that the offer is on the table for them to accept still if they want repayment. The Insurers won't want this going to court, so will probably accept the £25 a month or not bother collecting the debt.

[unclebulgaria67]

Just look at what you originally said and try to simplify it.

 

Looks like the assessor is saying that you knew it was a £3k excess and that in the event of a claim you could have to pay this amount. And your complaint is now about missing repayment terms from the contract.

 

A bit simplistic. But given they don't think the policy was miss sold as there is no requirement of the Insurance Broker to offer any advice at point of sale, that it was up to you to work out how you would repay the excess if you had to.

 

They are taking the side of the Insurers which is to be expected, as most FOS assessors will be ex-financial services employees, who may have worked for some of the companies complaints are made about.

 

I would start of by saying that although the sale of the Insurance contract may be non advisory, the type of contract with a £3000 all sections excess including third party claims, is not a standard insurance contract.

 

In a standard Insurance contract, a fault accident with a third party would not leave a policyholder owing a £3000 debt to their Insurance company. Even if the Insurance Broker had no responsibility to offer any clear advice, they had responsibility to offer clear information and the Insurance underwriter had the responsibility of ensuring that the policy wording has clear terms which comply with ICOBS.

 

Then you make the point about how the policy wording is contracting the policyholder to a debt obligation without any repayment terms, under a threat of cancellation and debt collection.

 

The Insurance contract terms are therefore unfair, because no terms of repayment are stated or any process of negotiating repayment is stated.

 

To expect a policyholder to instantly have £3000 available, under the threat of ruining the financial life of a policyholder, because that is what a recorded cancellation and debt collection might lead to, cannot be judged fair, if no repayment terms were ever stated.

 

Something like that.

[unclebulgaria67]

Any news ?