Companies need to cancel direct debit when insurance contract ends?

[Amethyst]

Q. for someone.

One year after selling my car and ending the insurance, I found out that the direct debit was still "open". That is normal?

[des8]

Re: Companies need to cancel direct debit when insurance contract ends?

I would have thought so.
Only the account holder can effect changes to mandates. You'd be pretty p**d off if third parties could access your account and change your instructions.
It is up to the account holder to cancel unwanted direct debits and continuous payment authorities. although the beneficiary shouldn't be using it outside of the agreement.

[Kati]

Re: Companies need to cancel direct debit when insurance contract ends?

Was the company still taking money through the DD??

I always believed it was up to the account holder to cancel DDs and Standing Orders with their bank too

[Fred]

Re: Companies need to cancel direct debit when insurance contract ends?

May I be so bold as to mention the potential change of provider at the end of the insurance policy & subsequently the behaviour of the insurer under the old policy.

They have a duty to continue this policy until cancellation is in writing & many are charged for periods of insurance not required or placed with another provider.

The assumption is continued policy & continued charges & also you agree to pay the new costs & take the new or amended changes with it.

[Amethyst]

Re: Companies need to cancel direct debit when insurance contract ends?

Was the company still taking money through the DD??

No it doesn't seem they used the DD to claim any further funds, but the facility was left in place, so theoretically could have (and it has happened before) I'm not sure on the actual legalities - does ending contract come under the DD guarantee ?