Default notice issued in error by swinton insurance

[Toots111]

I very recently took out a new insurance policy with Swinton; this was to replace an existing policy which was also with Swinton, although at a different branch.

 

I gave the new Swinton branch all of the necessary info to set up a new direct debit for the new policy, and then cancelled the existing direct debit for the cancelled policy.

 

I have just received a Statutory Default Notice, served under Section 87(1) of the CCA, from the new branch!! It states that it has been issued due to the fact that I have cancelled my direct debit!!

 

I phoned them immediately and explained that the only direct debit cancelled was for the 'old' policy with a different branch. They stated that as they use the same reference number for all of their direct debits, in cancelling my direct debit for the old policy, their systems believed I had also cancelled the new direct debit. They have re-instated my direct debit over the phone, apologised for issuing me with a DN, and offerred £20 in compensation.

 

I am not concerned about compensation per se, but have raised a complaint with them which they say they must officially respond to within 20 working days, as per the FOS rules?

 

I have asked for confirmation that the DN will not appear anywhere on my credit files, along with more minor questions.

 

Is it likely that the DN will be registered with CRA's please, when I've done absolutely nothing wrong?? They told me on the phone that this won't happen, but I thought all DN's would end up on credit files?

 

As the issuing of it was completely down to their own flawed systems, and no payment has been missed, can I try and bring them to task in some way for their ineptitude please? Is there anything else I can do to ensure the DN will not appear on my credit files please? The complaint I raised with them was done over the phone; will this be okay if I need to take things further please?? (I have had an email from them today, explaining that they have opened a complaint on their complaints system, on the strength of my phone call to them).

 

Many thanks to anybody who can point me in the right direction.

[fkofilee]

Its okay, relax. If a DN appears then you just complain and tell them that they are in the wrong and demand its amended. Failure to sort it out you issue a LBA before either FOS or Court.

[Toots111]

Its okay, relax. If a DN appears then you just complain and tell them that they are in the wrong and demand its amended. Failure to sort it out you issue a LBA before either FOS or Court.

 

Many thanks for your reply. Do you agree that they've acted wrongly please? Also, do you know whether all DN's end up on credit files automatically , or does it take further action from the issuing company to inform the Can't please?

 

Thanks again.

[Toots111]

Sorry, that end part was meant to say CRA's, not Can't!!

[dx100uk]

a DN is not an automatic default

it only give them the ability to default you IF they want too.

 

 

however

I do think they can issue a Default notice until the third missed payment?

 

 

wait a bit ill let you know.

 

 

the £20 penalty fees is certainly unlawful if the levied it

 

 

dx

[Toots111]

a DN is not an automatic default

it only give them the ability to default you IF they want too.

 

 

however

I do think they can issue a Default notice until the third missed payment?

 

 

wait a bit ill let you know.

 

 

the £20 penalty fees is certainly unlawful if the levied it

 

 

dx

 

Thanks for the reply dx, I'll wait for further clarification from you.

 

There hasn't been a missed payment from me at all.

 

The £20 is not a penalty, but is an offer of compensation from Swinton.

 

Do you know whether ALL DN's end up on credit files please??

 

Many thanks,

 

Toots.

[dx100uk]

a dn is not an automatic default.

 

 

it gives them the option to register a default

many do not use it.

 

 

dx

[Toots111]

a dn is not an automatic default.

 

 

it gives them the option to register a default

many do not use it.

 

 

dx

 

Thank you dx, but were they within their rights to issue one when there hadn't even been a missed payment please??

[dx100uk]

probably not no.

 

 

dx

[Toots111]

probably not no.

 

 

dx

 

So, can I take any action against them then please? What are my rights please?

[dx100uk]

I'm going though a similar time for a neighbour

 

 

they can send a default sum notice afaik 28 days after 1 missed payment,not a few days

 

as insurance is a cca reg agreement

 

it would come under CONC, and PRIN

 

especially principle 6 treating customers fairly

 

not allowed to charge for dn under conc

 

and certainly breaching prin

 

http://fshandbook.info/FS/html/FCA/PRIN/2/1

 

http://fshandbook.info/FS/html/FCA/CONC/7/3

[Toots111]

Many thanks dx. I'm trying to deal with SO much at the moment, my head feels about to burst!!

 

I haven't yet had time to look at the links you've provided, but hope they make some sense to me when I do, as CONC and PRIN mean nothing to me unfortunately, (and I'm not sure that I'd know how to use them in this situation, even if I did ).

 

Very grateful for your input and hope I can get back to you, if needs be.

 

Toots.