Alex Watts : Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : What does the contract say please?
Good evening,it is stated in one of the brokers letters,that:"You have choosen to pay the balance of your premium using a premium finance product and the remainder of the premium will be collected using direct debit.Please be aware this is a method of funding your premium and it is to be treated as a small loan.If You cancel your policy any refund will be used to clear the surrender value of your premium finance account.As this is a twelve month contract there may be occasions where the refund from the insurer(or no refund if You have claimed against the policy) is not enough to clear this account you will be asked to clear this balance and we will write to you to advise you of this within sixty days of the policy being terminated.If you fail to clear your balance we will pass this amount on to debt recovery companies and this can affect your future credit rating."-this,however, is information which is not included in terms of insurance business,but comes on the list with general informations about my car policy.The deposit payment of over two hundred pounds is excluded from the amount which is to be treated as "small loan".I got seven days to pay the remittance,asked for summary of my account,the agent agreed by phone with the seven days to take effect from my account summary delivery and i obtained the summary together with letter from debt recovery company-amount sufficiently risen.
Alex Watts : I see. So it appears the brokers fee is included and that can be clawed back - do you agree or have I misunderstood?
The payment of Deposit to broker(as it is called on documents supllied by broker and also on first papers from insurance finance company) is nowhere mentioned as "brokers fee" and is part of sum paid for insurance-one year premium.As the circumstances enabling me to pay or keep the policy for whole year are beyond my control,i did withdraw from contract and broker did not include the deposited sum in setting up my account into order.What broker calls an "administration fee" in their documents is £9 and after cancellation £10 sum.The "deposit" is not included as somehow separate amount or a fee,not even on the first letter from broker after the initial phone call and the payment of this "deposit".The letter with summary of my account and brokers looking forward to receiving remittance by return is one day older than letter from their debt recovery company...I would like to know,if they have the right to exclude the Deposit sum from finalisation of my account(which is nowhere clarified) and if there is grounds,for me and other customers to take whole case pass the ombudsman services,if a solicitor can help me.
Alex Watts :
Have you made a formal complaint please?
No,i am in the stage of finding out if there is any possibility of breach of contract from the side of broker or unfair treatment towards customer or if it is case previously known and recorded in disputes with insurance companies and brokers especialy.I gave a call to the dept recovery company,where i have been told the broker recently closed my file,however this might be just sign of non profit recovery process as the recovery company is based in Liverpool and i live in Edinburgh.Any eventualy a compensation might be much less,in terms of finances,than whole process of litigation and writing of letters to all involved parties.However,fundamentaly,i feel to be outlined as untrustworthy and my credits and profile of honest citizen are getting poor if i am to be non payer.
Alex Watts : What is the cost to you please ?
good evening,i just came from work,the debt by brokers recovery company is just over 100GBP
Alex Watts : No problem. Well in any event given such a low value it would be a small claim if it went to court.
Alex Watts : I doubt that it would given the value.
Alex Watts : But I don't think it can be right that you owe it given the problems.
Alex Watts : I have read the terms and even if it want to
Alex Watts : went to court you could argue they were unfair pursuant to the unfair contract terms in consumer regulations 1999
Alex Watts : Can I clarify anything for you about this today please?
good evening,to be honest,i prefer to save your time for more important cases,i will try the ombudsman services,it just comes to me strange,that the year premium minus the apr were amounts sewed to nearly exact match and the debt i am supposedly in(because deposit in dealers pocket does not figure anywhere else,but in the initial opening of my account and is fundamentaly and practicaly excluded from any farther dealing with it,which it,simply a fact,is fairly unfair,isn it?) equals the sum i hoped to retract and which is obtainable by the easiest mathematical operation of deviding the price of premium by 365.There is nowhere in whole the package from broker stated and clarified process of dealing with my money,althought i am bonded to it only by law(as i must insure my car)and financial regulations of the loan market also contractualy specified.It could surely be contraproductive to the unscrupulous hard hands of brokers and other institutions which are permanently breaking any efforts for reaching any point of justice in society,if genuine customer could make money by canceling insurance policies sooner,but,on the other hand,why should i pay triple the usual amount for insurance a day,just because a lorry reversed into my car?-and brokers keep silent.....Thank You for the consumer regulations 1999,as a foreigner,i am not familiar with it.Once again,thank You,petr