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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71159
Experience:  Over 5 years in practice
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my insurance company cancelled my van insurance, but are now

Customer Question

my insurance company cancelled my van insurance, but are now trying to charge me a cancellation charge which I have on 3 occasions told them that I disagree with the charge and that I would not be paying it. within 1 hour of my 3 time telling them this by phone, they applied to my bank for payment, then sent me an email to say they had done this, with a receipt of this also.
my question is , is it legal for them to try to take payment when I have told them not to.?
I must point out that I pre emptied they would do this and cancelled my card, so they didn't get a thing. I received a new email today again stating that I owed them money and they would take it from my bank.
I have proof from pervious email, that they cancelled the insurance. I should not have to pay and also I only had the insurance for 5 weeks and paid £200 for that.
many thanks
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Thank you for your question. My name is ***** ***** I will try to help with this.
What would you like to know about this please?
Customer: replied 3 years ago.

is it legal for a company to take money from your bank account when you have told them not to as you dispute the invoice?

and any info or advice on what I should do as in disputing the charge would be great.


Expert:  Jo C. replied 3 years ago.
Why did they cancel it?

Did you ask them to?

Could you explain your situation in a little more detail please?
Customer: replied 3 years ago.

they cancelled my insurance as they disagreed with my proof of no claims bonus. I did not make any kind of claim on my previous insurance policy with another company, however I was hit by a third party in the rear, which I dealt with myself with the third party's insurers, and I was unlucky to have my house broken into last year where they stole my keys and stole my brand new van I brought 6 wks. earlier.

the police found and returned my van, without a scratch on it , 24 hrs later.

so in no way did I ever make a claim for anything during my policy,

however after I had taken out a new policy with the rac, I received my proof of no claims through the post, which listed both items listed above as "claims/accidents/ incidents under this policy". the rac then wanted an extra £150.00 because of this, they agreed with me that it isn't a claim, but told me I had to get my previous insurers to remove it.

after contacting my previous insurers, they refused to remove these two items, so I then rang the rac back and was then told it would now be £350.00 extra, when I refused this charge, they emailed me a cancellation notice to inform me that in 7 days, the insurance would be cancelled. I then got new insurance with Aviva no problem, then I got a bill for cancelling my insurance. I tried to reason with them, even after telling them I had proof that they cancelled the insurance, they still claim it was me who cancelled it. they did however reduce the cost from £130 - £80.

the rac list the reason for cancellation as, non disclosure of material facts.

for the record, I never lied, they asked in their insurance form, have I had any claims in the past 5 years, for which I have not. and never cancelled anything. it was me who picked the rac with their recovery service etc.

also after speaking to Aviva, whom are my new insurers, they said as it wasn't a claim, ie, no money was paid out, it should not be on my proof of no claims bonus form.


Expert:  Jo C. replied 3 years ago.
Did you say that you had no claims?
Did you give details of these claims to new insurer?.
Did you actually put a claim in to the old co even though the insurance co didnt pay out?
Customer: replied 3 years ago.

I said I had 9 years proof of no claims discount, which I do.

these two incidents were not claims in anyway shape or form.

I did not tell the rac about these as I didn't know they were going to be on my no claims form, as I had not made any claims. I made no claim, I received no money, neither did anyone else.

no claim was made regarding these two incidents with my previous insurance company.


Expert:  Jo C. replied 3 years ago.
If these were not claims how did the old ins co know about them?
Did you advise them "for information only?"
Customer: replied 3 years ago.

yes I advised them, as per the terms of my insurance. but at no point did I say or start a claim, no forms or paperwork of any kind.

I am not an expert, that's why im talking to you, but I thought a claim was something you did if you wanted a pay out or compensation, which I didnt

Expert:  Jo C. replied 3 years ago.

In circumstances like this you have to advise an insurance company (the old co) of any incidents, however what you do is advise them “for a information only, not a claim”.

The reason behind that is that even though the insurance company may not pay out perhaps because the incident is not your fault or that you deal with it yourself in the end or the other insurance co pays out, you have a no claim bonus not a no fault bonus.

RAC however liberty to charge a higher premium as a result of these incidents if they were on duty to report them to your new insurer as incidents which were advanced to your insurer “further information only”.

The complaint here is against insurance company not RAC because RAC are simply going off what it says on the proof of bonus, that you had a claim on their treating it as nondisclosure.

Take your bank account the authority and need to speak to your bank about this to get the money clawed back from RAC.

Then, make a complaint to the Financial Ombudsman Service about RAC levying the cancellation charge, about the old insurance company putting a claim on your proof of bonus when there was no claim, asking for the cancellation of insurance to be removed from the record, and finally, to get a from both companies any extra premium that you had to pay as a result of their actions.

Can I clarify anything for you?

Customer: replied 3 years ago.

while chatting to you I have looked again at the proof of no claims bonus I was issued and it says exactly

claims, accidents or incidents under this policy

date description ad cost tp cost fault

25/4/14 theft vehicle recovered £0 £0 no

18/6/14 tp hit driver in rear £0 £0 no

under this policy means to me exactly that. I had no claims under this policy.

also says, cost and fault , which says £0 and no.

isn't this whole issue about claims?. whilst filling in the form on the rac

insurance form it says, have you had any claims in the past 5 years, which I answered no. that is true isn't it?

many thanks for your help, much apperaited

Expert:  Jo C. replied 3 years ago.
I agree with you and if there are no claims they shouldnt be there. My answer is to make the 2 complaints although you need to make sure that you have exhausted the ins co own complaints procedure first and tell them that you are referring to the ombudsman if they don’t deal with the issues satisfactorily