Direct line insurance , threat to cancel policy.
Discussion
This is plea for advice from all you legal (and non legal but helpful posters) regarding a problem we are having with direct line insurance.
Ted this isn't a name and shame post just a call for help, in all other aspects we are happy with DL, their costs and the level of cover provided.
My Company recently changed my wage payment date so we decided to change all of our direct debits to standing orders and match this new payment date. Most companies have been OK, a few have been a bit funny, but Direct line point blankly refuse to accept standing orders.
We have house contents insurance with Direct line and they were very competitive, but they have threatened to cancel the policy unless we complete and return a new direct debit mandate. The reason they have given for this steadfast position is that it reduces costs to them by having a single allocation and collection scheme (direct debit) the savings on which they are able to pass onto the customer?!
However, nowhere in the terms and conditions of the cover and contract does it say that direct debit is the only mehtod of payment and nowhere does it state they will not accept standing orders. The truth of the matter is they are accepting our payments made by standing order and we are not refusing to pay for the policy. The simple fact is we now control the payment date and they don't like it as we can stop or change the payment date whenever we want if we have an issue we have control, not them. The question is, Where do we stand legally if Direct line pull the cover out from underneath us? We have already gone in to writting on several occaisions ad spoken to various people and our last option is Direct lines internal complaint procedure or the Insurance Obudsman (but I don't want to go that route as I'm very weary of the government backed independant watchdogs)
Any help or advice would be appreciated.
Ted this isn't a name and shame post just a call for help, in all other aspects we are happy with DL, their costs and the level of cover provided.
My Company recently changed my wage payment date so we decided to change all of our direct debits to standing orders and match this new payment date. Most companies have been OK, a few have been a bit funny, but Direct line point blankly refuse to accept standing orders.
We have house contents insurance with Direct line and they were very competitive, but they have threatened to cancel the policy unless we complete and return a new direct debit mandate. The reason they have given for this steadfast position is that it reduces costs to them by having a single allocation and collection scheme (direct debit) the savings on which they are able to pass onto the customer?!
However, nowhere in the terms and conditions of the cover and contract does it say that direct debit is the only mehtod of payment and nowhere does it state they will not accept standing orders. The truth of the matter is they are accepting our payments made by standing order and we are not refusing to pay for the policy. The simple fact is we now control the payment date and they don't like it as we can stop or change the payment date whenever we want if we have an issue we have control, not them. The question is, Where do we stand legally if Direct line pull the cover out from underneath us? We have already gone in to writting on several occaisions ad spoken to various people and our last option is Direct lines internal complaint procedure or the Insurance Obudsman (but I don't want to go that route as I'm very weary of the government backed independant watchdogs)
Any help or advice would be appreciated.
I am guessing that you are not paying an annual premium in one go but spreading it over a few months. If that is the case they are offering you a credit facility and can therefore impose any stupid conditions they feel appropriate.
If not then why not just send them a cheque?
I will not have any Direct Debits from my accounts for exactly the same reasons as you. No control and no simple redress when mistakes occur. This does mean that I pay more on utility bills, as they all offer discounts for DD, but I am willing to put up with it.
If not then why not just send them a cheque?
I will not have any Direct Debits from my accounts for exactly the same reasons as you. No control and no simple redress when mistakes occur. This does mean that I pay more on utility bills, as they all offer discounts for DD, but I am willing to put up with it.
Ean218 said:
I will not have any Direct Debits from my accounts for exactly the same reasons as you. No control and no simple redress when mistakes occur. This does mean that I pay more on utility bills, as they all offer discounts for DD, but I am willing to put up with it.
www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm
Wacky Racer said:
no simple redress when mistakes occur.
www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm
That's one helluva pallaver to go through to get back your own money!
In the meantime what do you use to pay your other bills when some toe-rag has taken it in error?
I'm not really sure what you hope to achieve by using a standing order rather than DD.
If you are looking to randomly change the date you pay then I'm not suprised they won't help.
As said above if you are looking to pay monthly for an annual policy then they are offering you a credit service and hence have a right to decide which service they offer.
If you are looking to randomly change the date you pay then I'm not suprised they won't help.
As said above if you are looking to pay monthly for an annual policy then they are offering you a credit service and hence have a right to decide which service they offer.
A friend of mine used to have a mobile phone which was used for emergencies only. His typical monthly bills were a tenner.
His phone was cloned (an old analoque one) and a bill of £900 was run up. Even though the phone company acknowledged the problem (there were two instances of the same phone on at once) they still took the money out by Direct Debit. It then took a full three weeks to credit the money back to his account. Of course, no allowance was made for bounced mortgage and bill payments.
Ever since, he refuses Direct Debits.
His phone was cloned (an old analoque one) and a bill of £900 was run up. Even though the phone company acknowledged the problem (there were two instances of the same phone on at once) they still took the money out by Direct Debit. It then took a full three weeks to credit the money back to his account. Of course, no allowance was made for bounced mortgage and bill payments.
Ever since, he refuses Direct Debits.
To be blunt, tell them where to go and find a new broker. Even if it costs you a bit more, it would be worth it to get the flexibility.
My neice had an accident a while ago. She was with DL and the problem with speaking to anyone there was so great - she cannot sit holding on the phone during the day - she had to ask me to handle it for her. They kept me holding on for 35 minutes one day.
With my broker, who is the most helpful I have ever encountered, when my car was driven into he just took the details and handled the entire thing for me, including having the insurers of the other driver ring me to ask where I wanted the courtesy car delivered. I guess that's what you pay for when you go via a broker. His number; 01279 653372.
My neice had an accident a while ago. She was with DL and the problem with speaking to anyone there was so great - she cannot sit holding on the phone during the day - she had to ask me to handle it for her. They kept me holding on for 35 minutes one day.
With my broker, who is the most helpful I have ever encountered, when my car was driven into he just took the details and handled the entire thing for me, including having the insurers of the other driver ring me to ask where I wanted the courtesy car delivered. I guess that's what you pay for when you go via a broker. His number; 01279 653372.
woodytvr said:
I'm not really sure what you hope to achieve by using a standing order rather than DD.
If you are looking to randomly change the date you pay then I'm not suprised they won't help.
As said above if you are looking to pay monthly for an annual policy then they are offering you a credit service and hence have a right to decide which service they offer.
Don't want to change the date, I've already done that when I changed to a standing order. Also all charges for the finance should surely be included in your monthly premium, irrespective if its taken from your account (DD) or given (standing order).
I just don't believe that one comapny can cause so much hassle whilst everybody else was OK with the change.
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