ChatterBank2 mins ago
automatic insurance renewal
17 Answers
Had house and contents insured with AA, paid monthly. renewal came in February, was far too high, so emailed them and said no thank you. got insurance elsewhere, saved over £100. looked at my bank account statement, they were still taking money, so cancelled D.D. and emailed them. Then, £290 goes from account to AA. phoned Halifax, they said it had been paid on older debit card, which the AA had details of from last year. Phoned AA, they said " when you click the "I agree" box to confirm you want the insurance, you are also agreeing to us doing auto renewal. and as your direct debit failed, we have the right to take or demand payment in full.
So, the house is insured twice, probably illegal.
anyone else had problems with auto renew??
So, the house is insured twice, probably illegal.
anyone else had problems with auto renew??
Answers
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It sounds as if you must have inadvertently given them permission for an ongoing renewal. Have you still got the email where you emailed them to cancel it? if so you can show them that you instructed them to cancel (but you'd need to check the policy as to what it says about notice periods etc.) Where does the Halifax fit into all this?
Good idea, gran - or ask here http://
I'm uneasy with it but the argument is that without auto-renewal they used to get complaints from customers that the insurer hadn't re-reminded them the insurance had run out. You need to make sure you cancel in time, cancel any DDs no longer needed and make sure you avoid continuous payment authorities on credit cards.
Hope you get it back quickly. Try the Martin Lewis or Money Box sites for tips on how to go about it
Hope you get it back quickly. Try the Martin Lewis or Money Box sites for tips on how to go about it
You may want to read this which is critical of the insurers but says it is perfectly legal provided they warn you of the renewal
http://
This is what was said on Money Box
http://
http://
This is what was said on Money Box
http://
Here's a key extract relating to your insurer, the AA.
AA Insurance said it mentioned auto renewal both when the policy was taken out and before it was due to lapse: “When we sell new business on a continuous renewal basis, we always tell the customer that is how the policy will be renewed. If the customer says ‘No thanks’ then we will not put the renewal on a continuous basis.
“When the policy is due for renewal, the renewal letter we issue does confirm the continuous payment method and it tells the customer that if they are happy to renew at the price quoted they don’t have to do anything. But it also very clearly says that if they do not want to renew they need to call us to tell us.”
Cancellation procedures
The AA said it did not receive Nigel’s letter of cancellation, and that if a customer contacted them at any time to say they did not want auto renewal, it would act on this instruction.
AA Insurance said it mentioned auto renewal both when the policy was taken out and before it was due to lapse: “When we sell new business on a continuous renewal basis, we always tell the customer that is how the policy will be renewed. If the customer says ‘No thanks’ then we will not put the renewal on a continuous basis.
“When the policy is due for renewal, the renewal letter we issue does confirm the continuous payment method and it tells the customer that if they are happy to renew at the price quoted they don’t have to do anything. But it also very clearly says that if they do not want to renew they need to call us to tell us.”
Cancellation procedures
The AA said it did not receive Nigel’s letter of cancellation, and that if a customer contacted them at any time to say they did not want auto renewal, it would act on this instruction.
I willbe on the phone to them in the morning, and ask if the contract stated that if i cancelled the direct debit, I also agreed that they could use my debit card that I used to pay the initial months premium with, to plunder my bank account at a later date, without a letter of warning etc. I somehow don't think it did.
I have listened to " moneybox" and the AA are doing us customers a favour by making sure we don't drive or burn our houses down without insurance,
AA, don't do me anymore favours, thank you.
the AA are legal crooks.
I have listened to " moneybox" and the AA are doing us customers a favour by making sure we don't drive or burn our houses down without insurance,
AA, don't do me anymore favours, thank you.
the AA are legal crooks.
Regarding the "I somehow don't think it did."- I hope you are right but I'm pretty sure they'll have had this matter covered. They wouldn't be allowed by your bank to plunder your account without you having agreed to it, either by signing or by taking out the initial contract which would have included that in the terms.
Good luck- I'm not defending them because I'm uneasy with auto renewal, I'm just trying to be realistic.
Good luck- I'm not defending them because I'm uneasy with auto renewal, I'm just trying to be realistic.
I think that it is an illegal practice, for someone to be able to access your account is stealing, no matter who they are or whatever reason they say they are doing it for. This needs to be another case like the PPI, mis-selling of a product. I know they have probably covered theirselves legally and are bullet proof, but I think its a nasty practise, how many thousands of people have been stitched up this way??
just as an example, I went onto a comparison site, put in the details, and the AA were at the top almost, with a price that was over a £100 less than their auto renewal quote. no wonder that they do it. it needs stopping.
I have no doubt that lots of other companies employ the same practise, but I sell stuff on ebay and take credit/debit cards, I destroy all numbers as soon as the deal is done, i would no way dream of keeping personal details on any customer. the word is " ethics"
just as an example, I went onto a comparison site, put in the details, and the AA were at the top almost, with a price that was over a £100 less than their auto renewal quote. no wonder that they do it. it needs stopping.
I have no doubt that lots of other companies employ the same practise, but I sell stuff on ebay and take credit/debit cards, I destroy all numbers as soon as the deal is done, i would no way dream of keeping personal details on any customer. the word is " ethics"
It's a ploy they and others use to take money off us! They hope either people misunderstand and tick the boxes or that we will be apathetic and not bother to shop around and then cancel. They are not doing any us 'favours' They might have it covered legally but it's still wrong. Don't let it rest, percypineapple ( love the name)
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