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Alice H
Alice H, Solicitor/Partner
Category: Law
Satisfied Customers: 2850
Experience:  Partner in national law firm
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My question is regarding finances for insurance, I have a fleet

Customer Question

My question is regarding finances for insurance, I have a fleet policy for my taxi firm and had a few problems with the first payments which ended up that my finance was cancelled on my insurance and my broker then found me a new finance company who requested a deposit of nearly £2000.00 of which I paid and was told by my broker that the rest of the payments would be over 9 months at approx £900.00 per month, which i was happy to accept. But when the first payment came out of my account it was the first 3 months which was nearly £3000.00 as you can imagine I was not impressed as I was not informed that this was coming out of my account and when I spoke to my broker he said that the finance company would not budge and if i requested the money back with my bank they would cancel the finance and my insurance would also be cancelled. I am aware that my insurance needs to be paid but are they entitled to take this money from my account without informing me in the first place that this will happen?
Submitted: 4 years ago.
Category: Law
Expert:  Alice H replied 4 years ago.
My name is Alex Hughes and I am a Solicitor based in London. I'm happy to help with your question today.

Have you spoken to the insurance company who deducted the money?

Presumably now your monthly payments have reduced?
Customer: replied 4 years ago.

No now the payments will only continue until april instead of July but this does not help me at all now they have depleted my bank account without telling me this was to happen.


Expert:  Alice H replied 4 years ago.
It sounds like a catch-22 situation.

On one hand you have the right to complain if an organisation has deducted more money from your account than originally agreed. The direct debit guarantee means that any mistakes have to be rectified and money returned to your account. However, if you do this the insurance company may decide to cancel your cover.

You need to look at the insurance documents you've been given. If the papers say that only £2,000 should be deducted as the intial payment then that's what the insurance company is entitled to at the moment; you can ask for a refund of the remainder.

Bear in mind, of course, that if the overall price of the policy has not increased you are receiving the same cover for the same amount of money - so apart from some annoying inconvenience you haven't actually lost anything financially to this company.

Customer: replied 4 years ago.

But surly if the broker told me I would be making 9 payments of £900.00 up until June and without telling this is changed surly I have the right to ask that the payments continue until June and not finish in April ?

Expert:  Alice H replied 4 years ago.
Your agreement is actually with the insurance company. The broker is only the middleman.

So to be absolutely sure of the deal you need to have a look at the paperwork from the insurance company - there should be breakdown of the deposit due and monthly payments.

If the paperwork says £2000 deposit and £900 per month payments then this is what the insurance company should stick to. But if the deposit is £3,000 then the insurance company will be within their rights to hold onto this sum.

It sounds like somebody has made a mistake. You need to see whether this was a mistake by the broker in which case you'd probably not want to use him again. Or if the insurance company has made a mistake with the payments you can ask for a refund and re-adjustment of the monthly payments.

Expert:  Alice H replied 4 years ago.
Thanks for your custom. Please remember to take a moment to rate my answer.