Cancelling a Direct Debit: Breach of Contract?

[dr_gn]

Quick question:

I paid my mortgage off just after Christmas, but the B.S. still took a payment in January, which was nice of them. I've now got the payment back, but have noticed that my mortgage insurance payments (to a third party insurance company, but arranged by the B.S.) are still being paid by DD. I was assured by the B.S. twice (once when I payed the mortgage off and again when requesting the payment made in error) that the insurance was part of the monthly payment, and would stop automatically. TBH I had my doubts, but couldn't remember. Having just got around to checking, I find they are indeed still being paid, and they were definitely not in with the mortgage payment.

Rather than go through the pain of dealing with the pre-school intelligence of the B.S. again, can I simply stop the insurance DD's, or will I be then in some kind of breach of contract becasue I'm still - presumably - being insured for a mortgage I don't now have?

I thought getting rid of the mortgage would be a positive experince, but it's been a complete pain in the arse so far.

[Spitfire2]

I don't see a problem with that. Cancel it. They will write to you about it l, probably saying your cover will lapse if you don't pay. Then ignore and let it lapse.

[Jockman]

What was the Insurance for? Life Assurance?

[bitchstewie]

Cancelling a DD doesn't deal with the real issue which is any contractual liability you may still have for the payments.

You say yourself you're less than clear so IMO sort it out first rather than do the financial equivalent of digging a hold in the sand and sticking your head in it.

[Cliftonite]

Jockman said:

What was the Insurance for? Life Assurance?

Could be life cover, house and contents insurance? Either could still be wanted even if mortgage repaid. Check carefully before cancelling. Replacement life cover, if found to be needed, would almost certainly cost more to reinstate or even (worse case scenario!) not be available to you!

[Robertj21a]

Cliftonite said:

Could be life cover, house and contents insurance? Either could still be wanted even if mortgage repaid. Check carefully before cancelling. Replacement life cover, if found to be needed, would almost certainly cost more to reinstate or even (worse case scenario!) not be available to you!

Absolutely !

Double check what it was for before you just cancel it.

[dr_gn]

Thanks guys - I called the B.S. in the end, they'd forgotten to cancel it. Would have been nice to get everything sorted with one call, but there always seems to be some issue somewhere these days...

As was mentioned, better to bite the bullet and spend an hour of calls and on hold, but cancel it by the book.

Just need the redemption documents now (which also hadn't been dealt with yet).

[dr_gn]

So despite calling the BS as above, to confirm they would cancel all outstanding DD's for insurance etc (which they did confirm), today I got a letter from the insurance company with a missed payment notice.

There are a lot of totally useless dicks out there these days.

[condor]

You could ring the insurance company and talk to someone there.

[dr_gn]

condor said:

You could ring the insurance company and talk to someone there.

Yep, I'll have to. Another unnecessary phone call.

[catman]

Don't forget that under the direct debit guarantee, you can re-claim any unauthorised payments quite easily.

Tim

[dr_gn]

catman said:

Don't forget that under the direct debit guarantee, you can re-claim any unauthorised payments quite easily.

Tim

Thanks - I don't think any payments were made, they're just informing me that some have been missed. I guess it's not their fault, it's the B.S. for not doing what they'd said they'd do.