Dubious Insurance Company.

[HeinrichJ]

Hoping this is the correct area to post this, if not please direct me but here goes.

As many people usually do I used a comparison website to check for quotes and went for the cheapest option. I make sure I avoid as many of the add ons as I can like Breakdown Insurance as I already have that. So followed the link to the website of what I thought to be a reputable insurer, filled in the details and paid my money.
Previously and indeed on the other cars that were then covered and aside from a couple of pieces of documentation to be sent, that was everything done.

Not in this case, a message on my phone to call them for a validation process was required. This I did and was quite surprised how comprehensive this was. I was left with the impression everything was done and the insurance was now in place.
Not so, I got an email back telling me that although I have completed the validation process, I had not said I wanted to proceed with the insurance and so they were going to cancel it.
My reply was brief asking why would I go through their process if I did not want to take out insurance?
Another email from them saying as I have not said I wanted to proceed they were going to cancel. I tried calling them and spoke to someone who was no use at all, partially due to a language barrier and he put me on hold before I go cut off. Another attempt to call them was not answered.
With the expiry of the previous policy looming I gave up, on them and went elsewhere. I then replied to their next email telling them they were free to cancel as I was not willing to keep trying to get past the various obstacles they were putting up. After checking feedback on this company’s website and seeing they have been less than fair with several other people, not issuing refunds for example, I therefore put a dispute with the card company as they had not supplied the insurance I had paid for. I had received no documents, no policy number in fact. The only communication were the email messages.
Now, their next email was telling me that the cancellation fees came to £125 which were in their terms and conditions which I had never seen. I think the timing between payment and me going elsewhere was about three or four days. It was only with this email that they sent any documentation.
As I had never actually had their insurance, this was not actually a cancellation but a pure refund for a service that was never provided.
I did go to their website and copied and pasted their on cancellation information in my reply 33. Your cancellation rights

If you are a private (non-commercial) customer, you have the right to cancel a new policy within 14 days of when you purchase your policy or of when you receive your policy document, whichever is later. If your policy has been renewed as invited then the 14 day cooling off period does not apply. We will not pay a pro-rata refund of premium following any cancellation. Verbal requests for cancellation are not accepted and all cover documents must be returned. To cancel your policy email

I was told that the information did not apply to car insurance and their decision was final in their next email back.

In the meantime, I filled in the paperwork and sent that back to the card company. They put a hold on the payment and I thought all would be fine I seemed pretty clear that the Insurance Broker had not supplied the service I had paid for.

Last week I received this email.

Please find attached correspondence regarding your recent charge back.

We remind you that attempting to gain a financial advantage is a fraudulent act and clawing back your cancellation fees is in breach of the terms that you agreed to. Failure to pay us these cancellation fees will result in your account being handed over to collections and a judgement on your credit profile.

I have replied pointing out that it is also a fraudulent act to take money and not supply the service paid for.

I want to know what I should do next. CAB, ombudsman or wait for their next email.

[efpom]

Use the DD guarantee to claw back any money you paid and if t they want sue for their so called cancellation fee then that is up to them. I do not see how an insurance policy contract can be deemed to be in force.

[des8]

This sounds more like a broker (or intermediary) looking for their fees rather than the actual insurance company.
Could you name them please?

[HeinrichJ]

It turns out they are a broker.

Nova Direct aka Pexinsure.

Would I be correct in believing that they have no legal right to claim a cancellation fee?

[efpom]

Essentially, it seems to me that the entity that is claiming fees from you is either the Agent of the insurance company or is your Agent. If it acted as your Agent, its right to claim fees is or is not in the terms of the Agreement between you.

If it is, it has a prime facie right to claim its fees. But because it is a 'trader; and you are a consumer a whole raft of legislation exists that works in your favour. That would include s.50 Consumer Rights Act, but Unfair Terms in Consumer Contracts Regulations 1999 is also in play, which because it stems from EU directive 93/13/EEC, modify's the CRA 2015.

See OFT guidance https://assets.publishing.service.go...426/oft311.pdf

You might also wish to serve a notice on the broker pursuant to 4A The Consumer Protection from Unfair Trading Regulations 2008, unwinding the Agreement, on the ground that the object of the contract, the insurance policy, has failed.

[HeinrichJ]

Thanks for that.
I will have a look.

Certainly, the various terms thy quoted were not apparent and of course I did not foresee them manipulating the situation so that I would be forced to go elsewhere.
Also on you train, I put a dispute with the card company due to me paying for goods or services (insurance in this case) that was never received.

I saw a lot od unhappy customers on the reviews too so they seem to be habitually misleading people.

https://uk.trustpilot.com/review/nov...ges=en&stars=1

[des8]

As you didn't complete the process (their wording) no policy was in force, hence there was no cancellation and they can go forth etc etc.
From a practical point of view there is little they can do except refer to debt collectors, and they have no power.
Keep an eye on your credit report just in case they mark it.
Court is most unlikely, but any claim there can be defended
I would ignore them and their threats unless court papers do appear

[HeinrichJ]

Last reply from Nova Direct 9th September

It was always our intention to cover you, alterations were however required to be made to ensure you were covered correctly. Under the terms you agreed to, we did not need to notify you of the increased premium and could have implemented the charges without notifying you of this. Instead, we opted to notify you of the increased premium and awaited your confirmation to proceed, which never occurred. We never refused to provide you with cover. Work was done on your file and as per the terms and conditions, these carry a cost.

You are attempting to gain access to financial services without having to pay for them. This is illegal and in breach of the terms you agreed to. You have been served with the relevant notice to pay the amounts due. We are defending your charge back with your bank and have flagged your activity. Failure to settle the funds will result in the matter being passed onto collections and a County Court judgement being issued to you. We strongly condemn this behavior.


This was my previous reply (2nd September)

It is also fraudulent to take money of someone and then not supply the good or services that have been paid for in full.

It was apparently that you had no intention of supplying the insurance I paid for and it was also apparent that you had not intention of issuing the refund.

You therefore left me no choice but to recoup my funds by other means.

Further attempts at scamming and bullying tactics will be regarded as harassment.


I am looking at going to the Financial Ombudsman. Any advise on how to proceed there?

This is their earlier email.

Please find attached correspondence regarding your recent charge back.

We remind you that attempting to gain a financial advantage is a fraudulent act and clawing back your cancellation fees is in breach of the terms that you agreed to. Failure to pay us these cancellation fees will result in your account being handed over to collections and a judgement on your credit profile.

kind regards,



This is the contents of the attached letter to which I replied to. (28th August)

An outstanding debt is due in the sum of £125.00 (the “Debt”) to Policy Excess Insure Ltd. This Debt
remains outstanding. This Debt relates to:
Motor Insurance Premium
For your reference I have enclosed a copy of your Terms of Business which shows the amount owes
upon cancellation of the policy.
Please note that if we commence legal proceedings to secure repayment of the debt owing, this letter
will be tendered in court as evidence of your failure to attempt to resolve this matter. Furthermore,
you may be liable for any court costs, legal fees and damages, including punitive damages.
If the above Debt is not paid within 7-days, we reserve our rights to mark your credit file accordingly.
Should you need any further assistance from us, please do not hesitate to contact us further.
Yours sincerely,
PEX Insure



I have the entire earlier email chain also.

[des8]

As I said "there is little they can do except refer to debt collectors" which is what they are saying.
County Court Judgements aren't just issued.... there has to be a claim & a hearing which you lose first.
I would ignore them.

The fOS I have always found to be as much use as a chocolate fireguard and they take for ages.
Here's their complaint form if you intend to proceed down that line: https://www.financial-ombudsman.org....laint_form.pdf

[HeinrichJ]

Thanks Des. I will wait it out.

[HeinrichJ]

Received this letter yesterday.

I notice they are looking for the full premium rather than the cancellation fees which just underlines that they never had any intention of supplying the insurance nor were they looking to issue any sort of refund.

So what is my next move? Do I put in a complaint to the people on the back of the letter? Letter from Theives with Redactions.pdf

[Amethyst]

Can you give us the timeline of the initial agreement, the validation process, the email stating they were going to cancel, your response to that ( which said you don't want to cancel ) and them saying they had cancelled it.

You have 14 days to cancel, starting when you receive the policy documents so if this all took place within 14 days they have absolutely no argument.

This is Nova's cancellation policy

17.Your cancellation rights If you are a private (non-commercial) customer, you have the right to cancel a new policy within 14 days of when you purchase your policy or of when you receive your policy document, whichever is later. If your policy has been renewed as invited then the 14-day cooling off period does not apply. Provided you have not incurred any claims during that period, the insurers will pay a pro-rata refund of premium, subject to a minimum charge, from which we will deduct a cancellation fee of £75. Verbal requests for cancellation are not accepted and all cover documents must be returned. If you cancel after 14 days, motor insurers are likely to use a short-period cancellation scale for calculating refunds, as follows: Period of cover up to One Month Two Months Three Months Four Months Five Months Six Months Seven Months Eight Months Premium payable 30% 40% 50% 60% 70% 80% 90% 100% In addition, we will charge a cancellation fee of £70 and will retain 15% of any premium refund as commission (unless you are replacing the policy through us). After the 14-day cooling off period has expired, breakdown, legal expenses, excess reimbursement and most other policy extras are non-refundable. For commercial customers our charges remain the same but the insurer cancellation terms may differ but these will be detailed in your policy. If your policy is cancelled due to incorrect information supplied by you then we may cancel your policy based on the revised terms and premiums after taking the correct information into account. We may use any refund of premium to settle any instalment plans or balance that you may have but you will still need to pay any shortfall if the situation arises. We do not refund premiums until we receive them from the Insurer(s) which can take up to 6-8 weeks.

[Amethyst]

A formal complaint to Nova and then take that complaint through the Financial Ombudsman, and reply to the debt collectors telling them the debt is strongly disputed and is subject to a formal complaint.

[des8]

I would ignore them, in spite of their use of scary red letters.

Disputing with them will get you nowhere except a headache.
I would wait and see if they initiate a court claim, but it is your call.

PS can't find any online reports of Nova doing court!

[HeinrichJ]

Can you give us the timeline of the initial agreement, the validation process, the email stating they were going to cancel, your response to that ( which said you don't want to cancel ) and them saying they had cancelled it.

You have 14 days to cancel, starting when you receive the policy documents so if this all took place within 14 days they have absolutely no argument.

This is Nova's cancellation policy

I have the entire email chain going back to the start from Nova. In my first post I put down basically the chain of events.
But as far as the timeline is concerned, the insurance was due 2nd August. Towards the end of July I used comparison website for quotes and this one appeared cheapest and went to the link. I put the details in and bought the insurance. I then thought all was done. I had an email back to call them to go through their validation process so I called and was told this was done. An email confirmed this but also said I had not said I wanted to proceed. This was still before it was due to start.
Here is where I started to get suspicions about the company. I replied asking them why would I go through their validation process if I did not want to take out the insurance?
Another reply saying they were going to cancel as I had not said I wanted to proceed. I think I then tried to call them and spoke to someone who was no use at all who put me on hold before cutting me off. I tried to call back but could not get through.

So I went elsewhere and put in a dispute with the card company as I had paid for something they had not supplied. I told them to feel free to cancel as they were clearly unwilling to supply the insurance I had paid them for. At this point I put in the dispute, which would have been before August.

I never received any policy documents and do not think I even have a policy number. No insurance was ever in place from them for the car as I had gone elsewhere before the due date to start.

Then I received the above emails as the Credit card company appears to be ruling in my favour although I have not had confirmation of this.

I actually did send them their clause about fourteen days but the replied that it did not apply. As the insurance was never taken out, the fourteen days surely never started.