credit agreement with insurance providers

[Hurricane Puffrose]

Can I ask a real rookie question.

if I set up to pay by installments for an insurance policy that I cancel within 3 weeks (basically they are ripping me off) can the credit company charge me the full amount for the policy?

I have cancelled the DD as I am not planning on keeping this policy at all (in fact I have taken out a new one!)

thanks

p

[des8]

Re: credit agreement with insurance providers

It will depend on the terms of your credit agreement but generally you will have to pay for the three weeks cover you have had at "short term rates". On top of that there could well be an admin charge for cancellation, especially if you have used an intermediary.
These costs will be deducted from the annual premium originally paid by the finance company to the insurers, and the balance returned to the credit company. Any shortfall (also taking into account the credit company charges for early settlement) will be due from you.
If the annual premium was funded directly by the insurers the same basic system will be implemented, ie you pay for the insurance cover at short term rates plus any admin charges.
If you haven't paid sufficient you will be expected to make good the shortfall.
At least that's how it used to work in the distant past:tinysmile_hmm_t2:

[Hurricane Puffrose]

Re: credit agreement with insurance providers

they are going to charge me £200 to cancel my policy,.. well good riddance to bad rubbish!!!
att
Basically I had an insurance policy which I was told would take my named driver experience in to account, they wanted my proof the front and back of my drivers licence and the credit agreement, I sent this back 5 times, each time I emailled it they said i hadn't attached everything they needed, but admitted they had one of 2 of the 6 attachments I had sent.. despite it all being on the same email!!

In the end I told them the parable of the monkey and the olive when after a call of 49 mins left me with them threatening to take £330 out of my acccount there and then for their mistakes!

Just had email confirmation that i have cancelled said policy I have asked for an invoice so I can check their amounts are legal...


im not a beagle for nothing!!

[des8]

Re: credit agreement with insurance providers

I'd love to see how they calculate amount due.
Assuming this is through an intermediary it will possibly be:
Intermediary charge up to £75.
Insurers probably charging up to 30% of annual premium (without deduction of allowance for named driver experience)
plus Credit Company charges?

[Hurricane Puffrose]

Re: credit agreement with insurance providers

its a broker so idk.
I will post it up as soon as I can, im longing to let you lot sink your teeth in to it!!

On a plus point, Budget called me to let me know I was paying for something I should have been getting for free and they are reimbursing me.

[Hurricane Puffrose]

Re: credit agreement with insurance providers

just got, by recorded delivery no less, an invoice just saying 196.76 must be paid (2 days after cancellation) to avoid me being taken to court.
no break downs, no nothing so I have emailled them demaning a breakdown of costs and of the amount i had already paid.

[Hurricane Puffrose]

Re: credit agreement with insurance providers

UPDATE:
Credit agreement.. taken 23.6.2015
policy cancelled 30.6.2015
I have a 14 day cool off (email sent cancelling date 1.7.2015
Dear Sir or madam,

as per your kind letter dated 23.6.2015. I am taking advantage of your 14 day cool off period to cancel this.
I trust you will understand this is no slight to your company however I have cancelled the policy with RCIB and will no longer be needing this agreement.


They are aware of this cancellation.


Thanking you in advance

Credit agreement amount balance of £556.30.
Payments made: 161.25 deposit
amount demanded to cancel 196.76

so forgive me if im mistaken but it costs $400 for 25 days insurance??


http://www.cheapinsurancebrokers.co.uk/documents/toba.pdf

[des8]

Re: credit agreement with insurance providers

So brokers cancellation charge re insurance policy is £45, plus a further £25 for cancelling finance agreement.
That leaves £126 for short term insurance premium, which could be up to 30% of annual premium.
Was the annual premium in region of £375 -£400?
You need to see a copy of insurance policy to see what the insurer's short term rates are.
Most wordings are available on line.

HOWEVER, because you cancelled within the 14 day cooling off period according to the FSA handbook (I know!) the insurers can only charge a proportionate amount for the cover given
(http://fshandbook.info/FS/html/handbook/ICOBS/7/2). Might be out dated but the principle remains.

You need to get a complete breakdown of that figure, and details of how calculated.

[Hurricane Puffrose]

Re: credit agreement with insurance providers

i think i was over the 14 days but they would not send the policy cos I hadnt given them the details they wanted

[des8]

Re: credit agreement with insurance providers

I thought you were within 14 day cooling off period (easily confused that's me!)
If you were outside it you are almost certainly being charged Short term rates.
Do you know the name of the insurance company?

The policy wouldn't be sent until all relevant information was to hand.

[Hurricane Puffrose]

Re: credit agreement with insurance providers

i have a 14 day cool off on the credit agreement, which i have invoked.
I think i had the policy for 20 days or so.

its Right Choice Insurance Brokers, www.rcib.co.uk

[des8]

Re: credit agreement with insurance providers

I've already checked their reviews. Terrible company.
Their website confirms that for less than one month's insurance most companies charge 30% of annual premium.
Have you not had any details from them about the insurance company?
Did you ever receive a cover note or insurance certificate from them? That will tell you who the insurers were.
If they never sent you that confirmation how do you know if you were ever insured, and what would you have done if you had received a producer from the police?

I would call their bluff.
Keep everything in writing (signed for) and tell them your not paying diddly squat until they prove, by means of insurers documentation that you were insured, and by which company.
It is possible that they have a "binding contract" and can put insurers on risk without reference to the insurers, but they should still issue a cover note/ insurance certificate

[Hurricane Puffrose]

Re: credit agreement with insurance providers

ive had nothing but requests for more documents.
no cover note until I provided them with the documents that they admitted they had and said were fine, until I complained I had sent them 5 times when they said they werent valid.

I asked about getting pulled up, they said it was on "the database!"

the letter demanding payment says markerstudy authorise them, who markerstudy are i have no idea... all they are interested in is money, can I remind them they already had £165.00 deposit they need to take in to consideration as these fees are astronomical.

[des8]

Re: credit agreement with insurance providers

Makerstudy are a Gibralter based outfit who are passported into Uk and so only minimal regulation by UK authorities.

The idea of a covernote was that it was a temp certificate whilst policy documents were being sorted, or other queries (eg Proof of bonus/ proposal form) being dealt with. If they weren't sorted satisfactorily the insurance lapsed automatically with the expiry of the covernote.

So you never had any solid proof that you were insured.
Although the law regarding certificates (and a covernote is only a temporary certificate) has been modified in recent years, the insurer is still required to issue such a document and make it available to the insured, even if only electronically via the database. They have to tell you how to obtain a copy. (I'll have to check the actual details out later as I'm about to go out, but I'm pretty sure that's the position. Reason being that although the police have access to a central database [the car insurance database] it is realised that updating is not always done in real time and during the 2 or 3 day delay the insured might have to convince plod he is covered or have his car impounded)

Regarding astronomical fees.......... don't get me going again. I come from an era where insurance brokers remuneration was solely commission (and I know that caused disquiet in some quarters!)

[Hurricane Puffrose]

Re: credit agreement with insurance providers

ive not even had a reciept of payment!
All I have is demands for NCB and documents which I sent, and this demand for payment.






Thank you for your documents, however we are still outstanding the following:-

• A copy of the front of your photocard and the front of your counterpart license
• A signed proposal form
• A signed credit agreement
• A signed certificate surrender form
• 8 years and 9 months more named driver proof


These documents can be sent via email to customercare@rcib.co.uk.

Alternatively,

These documents can be sent via post to:

Right Choice Insurance Brokers
St James House
27-43 Eastern Road
Romford
Essex
RM1 3NH

or faxed to 0845 217 7046

If you have any questions or problems please call us on 01708 336 519.

Yours sincerely,

Katie Hopson Customer Care Right Choice Insurance Brokers Ltd
St James House, 27-43 Eastern Road, Romford RM1 3NH
Phone: Fax: Email:	01708 336 519 0845 217 7046 customercare@rcib.co.uk

Email 1
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email 2



Dear Sir/Madam,

We have yet to receive documentation which we have been urgently awaiting.

In order to issue your annual certificate and to avoid cancellation of your policy we urgently require these documents.

These documents can be sent via post to

Right Choice Insurance Brokers

St James House, 27-43 Eastern Road, Romford RM1 3NH

Emailed to customercare@rcib.co.uk or faxed to 0845 2177 046.

Should you need any help or further advice please do not hesitate to call us on 01708 336 519.

Regards,

Samantha Stowers

Customer Care Right Choice Insurance Brokers Ltd
St James House, 27-43 Eastern Road, Romford RM1 3NH
Phone: Fax: Email:	01708 336 519 0845 217 7046 customercare@rcib.co.uk

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Unfortunately we have become aware of one or more amendments that need to be made to your policy

Please contact us within 7 days on 01708 336 516 to avoid the cancellation of your policy.

If we do not resolve this issue within 7 days your policy will be cancelled.

Should you need any help or further advice please do not hesitate to contact us.

Yours sincerely

Amy Chessher Adjustments & Cancellations Right Choice Insurance Brokers Ltd
St James House 27-43 Eastern Road Romford Essex RM1 3NH
Phone: Fax: Email:	01708 336 516 ext. 4145 0845 217 7046 AmyChessher@rcib.co.uk We have recently become aware of one or more amendments that need to be made to your policy. - Need to reduce named driver to 8 years Your existing insurer is prepared to make the amendment and continue with the policy. To continue there is an additional premium of £335.00 due, this is inclusive of IPT and our administration fee. As you are paying monthly we are happy to take a deposit and add the rest to your remaining instalments. In line with the duty of disclosure section of your welcome pack we will attempt to take £83.75 in 7 days from the date of this letter from the original card used to pay. Your finance provider will issue a separate letter confirming the revised payment agreement. Please note this premium does NOT include any interest charged by the finance provider. We herewith give you notice that if payment declines and no other agreement is reached all cover upon your vehicle registration number beepbeep1 is cancelled as from 7 days after the date of this letter There will therefore be no insurance cover in force after this date, and you are advised to obtain cover elsewhere before using or permitting your vehicle to be used on the public highway. It is an offence under the Road Traffic Act to leave, drive or otherwise use your vehicle on the public highway without insurance cover being in force. Failure to return the certificate of insurance is also an offence under the Road Traffic Act. Please call us on 01708 336 516 before the 7th day if you wish to discuss or make alternative payment arrangements. Yours sincerely Right Choice Insurance Brokers Ltd