Cancelling insurance policy direct debits

DanDavis

Guys,

Wonder if you can help...I have 2 direct debits coming out of my account.

1st is for bike insurance for a bicycle I purchased 3 years back....only the rusting frame and back wheel of the bike remain after neglect by me.

2nd is for home insurance of a flat I moved out of March 2012. As the policy ran until November 2012 there was no point in me cancelling when I moved out as I still would have had to pay out the rest of the policy in one hit so I just let the DD run....but then forgot to cancel at the end of last year.

So my question is can I simply cancel these DD's (I'm now in America) and my policy will cancel eventually or am I still responsible for payments to a certain point? Don't want credit agencies trying to hunt me down!

Thanks
Dan

cafcfan

As you'll know direct debits are initiated by the provider of the goods or services. But you can cancel through your bank at any time you like.

You can do that on-line or by phone. If the latter probably best to follow it up in writing.

HOWEVER merely cancelling the regular debits does not absolve you from any contractual obligations you may have with the provider of the goods or services. So you will still have to inform them of your actions. That's fine if you have a product that has no notice period but if you're tied in to, say, a 12 month contract you may well still be liable for the debt, will be chased for the funds and have your credit rating trashed. On the other hand if your house insurance ran out last year and was not renewed under some pre-arranged automatic process but the company has still been taking the money, then under the direct debit scheme they are obliged to refund you.
You must discuss with your insurers.

fsa.gov.uk/static/pubs/consumer_info/know_your_rights_payments.pdf

Jodaius

I would STRONGLY advise that you discuss with the companies concerned, rather than just canceling the payments, to avoid any misunderstandings.

When you pay for insurance by monthly DD, you are usually effectively in a credit agreement for the full year's premium, i.e. you are committed to the full year's premium rather than paying 'monthly'. Depending on the terms and conditions, you may be able to cancel early, and you may get some of your money back, but there will probably be a cancellation fee.

Finally, many insurance companies use auto-renewal to tie you into a new 12 month contract each year if you don't cancel. Personally I find this pretty underhand, but unfortunately it is legal. You may have some defence if they didn't inform you, but if you have moved and not told them then you might just have to bite the bullet. At the very least you can cancel the policy so it doesn't get renewed again.

DanDavis

thanks guys, both Endlsleigh and Premium Credit were supremely unhelpful before I left but I'll speak to them again.

kings hill addick

Technically you can't insure something you don't have a potential loss with, so I would have thought you would be due a refund on the flat insurance.

tangoflash

Let the bike go missing and then contact them...................

golfaddick

You can cancel the direct debit for the house insurance with no fear of any comeback. The insurance company will probably write to you at the insuraed address a couple of times and then the policy will lapse. You are under no contract and I assure you there will be no comback.

I assume the bike dd will be the same.

Joshuk87

You can cancel the direct debit for the house insurance with no fear of any comeback. The insurance company will probably write to you at the insuraed address a couple of times and then the policy will lapse. You are under no contract and I assure you there will be no comback.

I assume the bike dd will be the same.

Not true I cancelled my home insurance one and they sent debt collectors for the remaining managed to argue it but massive issues

golfaddick

You can cancel the direct debit for the house insurance with no fear of any comeback. The insurance company will probably write to you at the insuraed address a couple of times and then the policy will lapse. You are under no contract and I assure you there will be no comback.

I assume the bike dd will be the same.

Not true I cancelled my home insurance one and they sent debt collectors for the remaining managed to argue it but massive issues

If you "buy" house insurance and pay for it by d/d over 12 equal monthly payments, then rest assured, you owe nobody anything should you cancel the d/d at any time. You have had the cover, and paid for it, over that period of time. No more, no less - can't see how you have built up a debt of any sort.

kings hill addick

If you pay monthly that is true, but if you agree to take a twelve month contract but pay for it in installments you have to pay them all.

If you surrender the policy you will be due a refund, but it will be on a sliding scale that means that towards the end of the policy you would receive little, so if you cancel after about month nine you would still have to pay most of the three remaining monthly premiums.