insurance co charging £30 for missed DD - is this still lawful?

[whompy whomperson]

My house Insurance company has charged me £30 for an unpaid direct debit.

the payment was due on the 28th and I had forgotten about it because of a hectic work schedule of working night shifts.

 

 

I had a notification of a failed Direct debit payment of £14.30

I phoned them up on the 30th on my day off and paid in full

and asked if they would waive the £30 fee and he said he cant do that.

 

 

I said I thought companies were no longer allowed to charge this much

and he replied the company can charge £30 for unpaid direct debits

and there is nothing I can do about it.

 

 

I said Im going to look this up I dont feel its fair.

 

 

he said look it up all you want im right and theres nothing you can do about it and then hung up.

[dx100uk]

depends on the T&C's

 

 

but typically no they are not

as the FCA considers them a penalty and thus unlawful.

[unclebulgaria67]

They can only make a reasonable charge to cover their costs and have to justify the amount. If they can't provide a full breakdown of any charge to show it covers their operating costs, then they can't charge it.

[BankFodder]

Which insurance company please?

[Andyorch]

You Bank also charged you?.....are you paying the Insurance company Direct or are your payments on finance ?

 

Andy