Classic cars forum & vehicle restoration.

[Pat Russell]

If you insure your vehicle using your credit or debit card PLEASE BE CAREFUL.
18 months ago I helped a friend out by paying his van insurance with my card as the insurance company would not accept a cheque.He re-imbursed me immediately with cash.

Much to my horror in June 2009 I was invoiced for £351 on my Barclaycard.I immediately contacted them and they sent me the appropriate forms for me to fill in and report the error.

After numerous phone calls and letters I discovered that the same insurance company HAD AUTOMATICALLY REINSURED my friend's van using my card. The company said they had sent the insurance details to him which said that if they did not hear from him it would be assumed he wanted to reinsure for another year..NO DOCUMENTS HAD BEEN RECEIVED BY MY FRIEND SO OBVIOUSLY HE HAD NOT REPLIED.Also he had applied for a SORN certificate as due to severe eye problems he was not allowed to drive.

Yesterday I again spoke to the legal dept.of Barclay card.I was told it was now out of their hands and they could not reimburse me it was now up to the Insurance company.I spoke yesterday to the accounts section of the insurance company.I have been asked to send a letter from the consultant saying my friend was not able to drive and also a copy of the SORN certificate......and so it goes on.
So BEWARE.
I cancelled my Barclaycard in June but the £351 is still expected to be paid by me unless we can resolve it.

Pat

[Phil - Nottingham]

I know it is very difficult to stop annual payments on credit cards once set up so I never do so but surely neuther the Insrance company nor Barclaycard had no authority to assume that the one-off payment was your authorisation for continuous or even future payments.

If this is not resolved quickly by either of them threaten to report them to the FSA
_________________
Rover P2
Rover P4
Rover P5 & P5B
Land Rover S2 & S3
Morris Mini Traveller Mk2

[47Jag]

We had the same problem with Mini insurance this year. The lesson is that when the renewal comes in to let them know one way or another if you are going to renew. failure imlies that you are renewing and the automatic systems kick in. I don't see as the credit card companies that are at fault but the insurers abusing a system.

Art

[Phil - Nottingham]

Credit card companies are jointly liable though - but it was the insurer that may be at fault. The DD debit guarantee does not apply either to credit cards
_________________
Rover P2
Rover P4
Rover P5 & P5B
Land Rover S2 & S3
Morris Mini Traveller Mk2

[Pat Russell]

[roverdriver]

In Oz lots of companies want customers to set up Direct Debit facilities from your bank account for any regular payments. That, in my opinion, is like opening your wallet and saying "Help Yourself!".

Sometimes it might be a little inconvenient, but the safest is cash over the counter, or if the company will not accept a cheque through the mail, then change companies.
_________________
Dane- roverdriver but not a Viking.

[Phil - Nottingham]

Actually I always try to use the bank DD set-up given bank and now postal strikes delays even without the risk of cheques getting lost in our very unreliable Royal Mail post which happens regularly, or alternatively i will pay instantly electronically.

I hardly ever use cash for anything and use the occsaional cheque for Rally entry fees

There is payment protection for bank DD's in the UK if taken in error
_________________
Rover P2
Rover P4
Rover P5 & P5B
Land Rover S2 & S3
Morris Mini Traveller Mk2

[ukdave2002]

This is why I preffer standing orders to direct debits, with the latter the recieving organisation is in complete control of the ammount that your account id debited.

However for both I was always under the impression that a signed contrat was needed?
Dave