Scheming Insurance Companies

[Dinger2]

My 93year old Mum was horrified two weeks ago to receive a letter informing her that a household insurance policy that she did not know that she had for the last three years was going up to £156.50. It was only the receipt of this letter that alerted my Mum to the fact that that they have been taking (admittedly by direct debit) the premium for the last three years without sending any prior notification cover was about to expire or the option to discontinue or not. We think this is a form of exploitation of an old lady.Not too many years ago this would be called "sharp practice "She has written a letter asking for a refund but no reply yet,I think they are trying to ignore her.We would be grateful for any opinions as escalate the matter via the Ombudsman or County court or legal action .

[Old_Geezer]

Sounds more if a law forum question to me. Shows the dangers of DD where one agrees to let folk dip into one's savings as they wish. Hope you get legal advice soon.

[Old_Geezer]

...OF... !

[hc4361]

She must ask them to send proof that she agreed to auto renewal.
Not only should she have had the renewal notice prior to renewal date each year she should also have had the policy documents which make it clear she has 14 days to cancel.
What is the name of the insurance company?

If your mother is certain she didn't receive the renewal notices, the policies nor authorise automatic renewal she should contact the insurance ombudsman.

http://www.financial-ombudsman.org.uk

[Peter Pedant]

pukka advice from hc
she needs to exhaust local remedies before the ombudsman

and I think they will say she did get a service -
as she was insured

I am in a similar wrangle with Sky ....

[hc4361]

By the way, did she buy insurance elsewhere for that period?

[Hymie]

There have been similar cases reported, where people are paying of the order of £1,000 per annum for house insurance – simply because they failed to shop around; believing that their loyalty (to the insurance company) would be rewarded.

Loyalty to an insurance company will result in increased premiums, above that offered by the competition.

[Buenchico]

It's a condition of the Direct Debit scheme that any firm using it MUST give prior notification to the account holder of the date and amount of any money that's to be transferred.

The Direct Debit Guarantee states that where that condition is not met (and the account holder refers the matter to their bank) the bank MUST return their money:
https://www.directdebit.co.uk/DirectDebitExplained/Pages/DirectDebitGuarantee.aspx

So your mother needs to raise the matter with her bank.

[Arrods]

Need more information. If the latest letter said sorry we forgot to issue reminders, then they have a case to answer. As others have also said, was she already paying insurance to someone else? Or that she didn't need/want insurance? Was it an insurer or broker? Were reminder letters received but not understood?

[Dinger2]

Arrows. There were no renewal notices received.She thought it would automatically lapse after one year and was quite o.k. to let it do so .neither did she receive any policy,which casts doubt over its existence.The company is Halifax . She had NO other insurance,why would anyone insure the same thing twice ?

[Dinger2]

Thank-You for your input hc4361,the company is Halifax, we have both been savers with them for years,if they don't give a refund of the unbeknownst "insured" years or furnish us with proof of the existence of a policy my Mum agreed to,then we will contact the Ombudsman to adjudicate and eventually close our accounts with them it's beginning to smell of underhanded exploitation.thanks again Amigo.