car insurance - again!!!

[john]

Had my car insured with M C Edwards. Changed cars, and their quote for the new car was extortionate,so had to cancel the insurance. I specifically asked if there was anything to pay on the old policy, but was told that there would be nothing to pay as I had paid over 6 months of the policy, and with the deposit I paid at the begining it was all covered. I just had to confirm the cancellation in writing. I did all this and thought that was an end to it.

 

I have now got a collection agency chasing me for £77.92 owed to the aforementioned MC Edwards.

 

The thing that annoys me is that I explained to the bloke I spoke to that I needed to take any cancellation fee/balance owing into consideration when deciding whether to go with their high quote or to move to the company giving me the lower quote.

 

Have written to them telling them that as far as I'm aware I have no debt to this company. In the letter they are threatening court action and saying I will have to pay all the fees and solicitors bills. Is this correct? Do I have any defence if I defend their claim? Help!!!!!

[Yorkyclaims]

Have you got a breakdown for the £77.92 owed????

[john]

no breakdown. the last contact i had with them was a phone call from them asking me why i had not paid, and i was told that after they cancelled the policy thats the balance owed, the annoying thing is when i asked if this would happen they checked and told me it would not, then when they mess it up they expect me the customer to pay for their lies.

[MARTIN3030]

Couple of questions John.

 

1.Did you send your cancellation notice by recorded/signed for ?

 

2.Is the collection agency affiliated to the broker/insurer ?

 

3.Have you got your original agreement and does it mention charges there ?

 

 

Essentially you need to see exactly what this charge is for.

 

If the collection agency is not connected to the insurance/broker then you can demand to see the ORIGINAL agreement (they are obliged under the 1974 consumer credit act to supply this to you )

 

If the amount is shown to be penalties then the collection agency cannot enforce you to pay.

 

More about this in the Faqs

 

Hope it helps

 

Martin:D