Buildings+Contents ins cancelled missed DD to Creation Consumer Finance

[philmycoke]

Dear sir or madam,

 

 

on the 07/06/13 I was informed by the insurance broker that my contents and building insurance policy with Creation Consumer Finance was in danger of being cancelled due to missed direct debit.

 

 

This is the first time I found out who Creation Consumer Finance were. I have received no documents from them nor have I ever signed or dated anything.

 

 

Now I did do 2 direct debit indemnity and waited to be contacted to find out who these guys were and I got nothing. 07/06/13 was the first time.

 

 

So I informed my broker we will deal with. 1 issue or another pinned me down and I never got to it. So on the 13/06/13 it was canclled. Now they are asking for the full outstanding balance of £150 to be paid asap.

 

 

The policy can not be reinstated, they will not cover me and they want the full amount paid.

 

 

Direct quote from my broker is the following “I have now spoken to Creation Consumer Finance and I'm afraid your loan has been cancelled. It was cancelled on 13th June. Due to the cancellation, we now have to ask you to pay the remaining balance of £150.22 in full. You can either pay this by cheque, credit/debit card or via BACS. In terms of the loan agreement, that cannot be reinstated in regards to this policy.”

 

 

I have never got anything call or letters from these people. Nor did I know whom they are prior to 07/07/13. however I did give direct debit details to my broker to setup some kind of policy.

 

 

Why are they demanding the full amount? And still not cover me? Please help. I am in more debt then I can handle. I am semi depressed since 2006. I am unemployed and barley breaking even.

 

 

Please help.

 

 

Ali

[citizenB]

I must admit, I cant see that they are entitled to demand the outstanding balance if they are not going to continue with the cover ?

 

I will flag for others to advise.

[Migster]

Maybe I have the wrong end of the stick, but isn't the issue here the finance agreement rather than the insurance policy? The insurance was presumably paid for with a loan from Creation, so the policy is still in force, but the loan is now due in full as the monthly payments have not been made. Anyone else agree with that interpretation?

[citizenB]

Sorry, migster, I am confused - I thought it was just the Insurance policy that was being cancelled ?

[citizenB]

Just confirming that you are in the correct forum and your thread title is being tweeted.

 

I am sure there will be others looking in on you when they are back from their day jobs.

[unclebulgaria67]

I have seen mention of this before. You taken out some form of loan to pay an Insurance policy and then when it is cancelled mid term they demand the full remaining premium. If you were not aware of how this was being arranged, then under the FCA ICOBS, I would say that the broker who arranged this policy is on dodgy ground.

 

I would suggest that you just arrange Insurance elsewhere. This is not a cancellation that needs to be disclosed when asked the question when arranging Insurance. Your cancellation is purely related to a cancelled Direct Debit payment and nothing that a new Insurers would be interested in.

 

In regard to this demand for payment, I would suggest that you make a formal complaint in writing, asking for their full explanation about the sale of the policy in relation to FCA ICOB rules and whether the terms are fully compliant. Advise them that you will be asking the FOS to look into the matter, so if they wish to continue the matter, they should issue their final response.

Edited June 19, 2013 by unclebulgaria67

[unclebulgaria67]

http://fshandbook.info/FS/html/handbook/ICOBS/6/2

[philmycoke]

You guys are Awesome. Keept it up!

[ericsbrother]

They are not cancelling the insurance, just the ability to pay monthly and want the full premium balance. Unfortunately you will have to pay up or lose your cover and still possibly be liable for the remaining premium. The bit about non-reinstatement is about the credit agreement, not insurance.