BISL Budget Bradford and Bingley Car Insurance

[bigegg]

Very confusing set of letters received over last month, so decided to fire a couple off myself:

ACCOUNT IN DISPUTE

FORMAL COMPLAINT

I am in receipt of, and acknowledge, your letter of 2xth September 2012 headed “Final Notice of Outstanding Balance” for an alleged amount of £4xx.00 for an insurance policy, reference as above, which I cancelled by a phone call on 10th August 2012, cancellation effective 23.59 on 13th August 2012.

During this phone call, I was informed that the total outstanding balance, and total liability to your company for this policy was a total of £2yy.00 which would be collected by direct debit on 30th August.

 

I am also in receipt of the following:

 

A letter dated 11th August stating that when my insurance policy cancels on 13th August 2012, a balance of £3zz.00 will be due.

A letter dated 3rd September stating that an outstanding balance of £2yy.00 has failed to be collected from my account on 30th August

A letter dated 12th September stating an outstanding balance of £150.00 which is made up of :

“Cancellation Fee : £0.00

Time on Cover £1xx.oo

Short Term rates £3xx.00

“

A sum which makes no sense whatsoever!

 

I believe your apparent lack of competence in accounting for the amount I allegedly owe is possibly a breach of the “Money Laundering Regulations 2007”

Also in your letter of xxth September, you state

“Arrange for payment before 04OCT2012 (…) To ensure this matter is not passed to an external agency we can take payment in full by credit or debit card”

I received a letter dated 1OCT 2012 from a company called “C.A.R.S” asking for payment of this account.

This is a clear breach of the OFT “Guidelines on Debt Collection”:

Section 3.7 :

“Examples of unfair or improper practices are as follows:

b. pressurising debtors to raise funds by selling their property or by

taking on further borrowing (including extending their existing

borrowing)

 

c. multiple businesses seeking to recover the same debt at the

same time, resulting in repetitive and/or frequent contact with

the debtor (or his representative) by different parties

“

 

What I require:

1. A full statement of all charges, fees and payments applied to this account since the policy’s inception.

 

2. A full apology, and proposals for compensation, for the distress you have caused to myself by your breach of the Office of Fair Tradings Guidelines on Debt Collection.

3. A copy of your formal complaints procedure.

I am aware of UK case law, such as “Dunlop Pneumatic Tyres Ltd v New garage and Motor Co. (1915)” which makes penalty charges unlawful.

If I believe unfair penalty charges have been levied against this account I WILL seek to have them reimbursed.

I WILL refer my complaint to the Financial Ombudsman Service if you do not resolve my complaint to my satisfaction.

I reserve the right to refer my complaints to the OFT and Trading Standards for both your breaches of the Guidelines on Debt Collection, and apparent breach of the “Money Laundering Regulations 2007” .

 

I trust this makes my position in this matter clear, and await your mutually satisfactory response.

(some dates/figures have been changed)

Yes, most of the figures in each letter ARE different, and do not tally with each other.

I also fired this off to Bradford and Bingley Building Society complaints, and a seperate copy, personally, to the Chairmain of the Board

 

Please find enclosed a copy of a formal complaint I have made to BISL, who administer your vehicle insurance business, regarding apparent breaches of The Money Laundering Regulations 2007, and the OFT guidelines on Debt Collection.

I am sure you are aware that Bradford and Bingley are vicariously responsible for the actions of BISL, and their agents whilst acting as your agents.

A search of the internet will show multiple instances where BISL / Budget have attracted numerous complaints, and I urge you to consider whether Bradford and Bingley’s association with this company is the image which you wish to portray, and the effect BISL/Budget are likely to have upon the reputation of your company.

[MARTIN3030]

Well done.

Will be interesting to see how they respond.

[Ganymede]

Can I ask why you think they have breached the MLR 2007?

 

Cheers.

[unclebulgaria67]

BISL are an awful company. I read sometime ago a post from a person who worked at BISL dealing with complaints. They said that the complaints dept was their busiest department.

 

I would suggest that perhaps their IT system is not fit for purpose and that the FSA may wish to investigate whether they are currently meeting the required standards for accounting.

[unclebulgaria67]

Can I ask why you think they have breached the MLR 2007?

 

Cheers.

 

I did wonder. I think they are concerned about the accounting standards, which is part of the MLR 2007 act ?

[bigegg]

I did wonder. I think they are concerned about the accounting standards, which is part of the MLR 2007 act ?

 

20.—(1) A relevant person must establish and maintain appropriate and risk-sensitive policies

and procedures relating to—

 

(a) customer due diligence measures and ongoing monitoring;

 

(b) reporting;

 

© record-keeping;

 

(d) internal control;

[bigegg]

Would I be better off removing that part? Or is there a better statute to quote?

 

The letters haven't been printed and posted yet.

[unclebulgaria67]

Would I be better off removing that part? Or is there a better statute to quote?

 

The letters haven't been printed and posted yet.

 

I would suggest pointing to the FSA's ICOBS instead and related FSA rules. Rather than state all of the following. You should simply state that BISL have breached the requirements of the FSA in regard to record keeping and accounting. e.g reasonable care to ensure accuracy of records and orderly record of dealings/transactions.

 

http://fsahandbook.info/FSA/html/handbook/ICOBS

 

ICOBS 2.4.1 01/10/2011(1) The Senior Management Arrangements, Systems and Controls sourcebook contains high-level record-keeping requirements (see SYSC 3.2.20 R1 and SYSC 9.1.1 R).1

 

SYSC 3.2.20 01/12/2001 (1) A firm must take reasonable care to make and retain adequate records of matters and dealings (including accounting records) which are the subject of requirements and standards under the regulatory system.

 

SYSC 9.1.1 01/07/2011 A firm must arrange for orderly records to be kept of its business and internal organisation, including all services and transactions undertaken by it, which must be sufficient to enable the FSA or any other relevant competent authority under MiFID or the UCITS Directive3 to monitor the firm's compliance with the requirements under the regulatory system, and in particular to ascertain that the firm has complied with all obligations with respect to clients.

[Note: article 13(6) of MiFID,3 article 5(1)(f) of the MiFID implementing Directive, article 12(1)(a) of the UCITS Directive and article 4(1)(e) of the UCITS implementing Directive]3

[bigegg]

Letter amended as follows:

 

A sum which makes no sense whatsoever!

 

I believe your apparent lack of competence in accounting for the amount I allegedly owe is in breach of the requirements of the Financial Services.

I m aware, as you should be, of the “Insurance Conduct of Business Sourcebook” published by the FSA – section 2.4.1 pertains.

 

Also in your letter of 26th September, you state

“Arrange for payment before 4 October 2012 (…) To ensure this matter is not passed to an external agency we can take payment in full by credit or debit card”

I received a letter dated 1st October 2012 from a company called “C.A.R.S” asking for payment of this account.

Using a debt collector at the same time as sending me letters yourself, and requesting payment by credit card are BOTH clear breaches of the OFT “Guidelines on Debt Collection”:

Section 3.7 :

“Examples of unfair or improper practices are as follows:

b. pressurising debtors to raise funds by selling their property or by

taking on further borrowing (including extending their existing

borrowing)

 

c. multiple businesses seeking to recover the same debt at the

same time, resulting in repetitive and/or frequent contact with

the debtor (or his representative) by different parties

“

 

What I require:

 

1. A full statement of all charges, fees and payments applied to this account since the policy’s inception.

 

2. A full apology, and proposals for compensation, for the distress you have caused to myself by your breach of the Office of Fair Tradings Guidelines on Debt Collection.

 

3. A copy of your formal complaints procedure.

 

 

 

 

I am aware of UK case law, such as “Dunlop Pneumatic Tyres Ltd v New garage and Motor Co. (1915)” which makes penalty charges unlawful, and also

“Insurance: Conduct of Business Sourcebook” published by the Financial Services Authority

Section 7.22:

(1) When a consumer exercises the right to cancel he may only be required to pay, without any undue delay, for the service actually provided by the firm in accordance with the contract.

(2) The amount payable must not:

(a) exceed an amount which is in proportion to the extent of the service already provided in comparison with the full coverage of the contract; and

(b) in any case be such that it could be construed as a penalty.

(3) A firm must not require a consumer to pay any amount:

(a) unless it can prove that the consumer was duly informed about the amount payable; or

If I believe unfair penalty charges have been levied against this account I WILL seek to have them reimbursed.

I WILL refer my complaint to the Financial Ombudsman Service and the FSA if you do not resolve my complaint to my satisfaction.

I reserve the right to refer my complaints to the OFT and Trading Standards for both your breaches of the Guidelines on Debt Collection, and apparent breaches of the FSA ICOBS

 

I trust this makes my position in this matter clear, and await your mutually satisfactory response.

letter to B&B corporate has been amended as well

[bigegg]

Can a breach of ICOBS be settled in court the same way a breach of BCOBS can?

[bigegg]

Can a breach of ICOBS be settled in court the same way a breach of BCOBS can?

just found it under schedule 5 of ICOBS

[bigegg]

letters off in the post this afternoon.

[ajs444]

Anything further on this? Going through the same problems with Post Office car Insurance, administered by BISL.

[bigegg]

My apologies for not updating.

I went into hospital, and completely forgot about the thread.

 

Without too much detail, because all the paperwork is buried.

 

B&B no longer have anything to do with B&B car insurance - they sold the name to BISL.

That was confirmed by the PA to the chairman of B&B Building Society.

 

I received a reply form BISL, confirming total owing was about £100, rather than the £460+ they reckoned I owed. "as a gesture of good will".

That was without any further letters, or arguing.

 

which reminds me, I haven't paid them yet.

[ajs444]

Ta for that, have SAR'd them and asked for breakdown of cancellation charges plus details of any default charges they have applied.