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    Esure car insurance re-instated a cancelled policy...

    I cancelled my car insurance direct debit before the end of last month and also called the company to cancel. Then on the 8th of September Esure re-unstated the mandate to my bank and tried to take money out. I have now been charged £35 as I never had money in that account. I have recently changed where my wages go.

    I called Esure about this and they said yes it was cancelled and don't know why the mandate was set back up. I have to send in a photo copy to prove I was charged.

    Shouldn't that be against the law?

    9 Comments

    Reccuring problem with many companies.

    This is what I don't get about direct debits, it seems if a customer cancels it, some companies, seem able to attempt a further charge anyways, incuring a penalty charge from the customers bank.

    I would suggest you call your bank and you ask them kindly to refund the £35 charge, or invalidate entirely if not taken yet.

    As for E-Sure seems you need to contact them to make it clear that you cancelled the policy, stop charging you etc.

    Original Poster

    Yeh that's what I'm doing, I'm also asking why it was set back up under no authority from myself.

    2 issues here:
    1. if you have cancelled part-way through your policy, you are likely to owe them money and as such they may be in their rights under the T&C you agree to, to recover this money. By this I mean you may have unwittingly given your concern to have them renew it under policy cancellation circumstances (lets be honest, who on earth actually reads all the T&C they sign up to!!). If this was in fact just the end of the year and you chose not to renew then they have acted against DD policy.
    2. DD has a guarantee with it which you bank will enforce (and are obliged to). If this money has been taken from you without agreement and against your wishes (far the T&C as stated in 1 above), then your bank will recover it very quickly. It's part of the 'promise' of any DD T&C

    Banned

    its not cricket, but i dont think its against any laws

    the bank wont refund the charge as its not a banking error - you will neeed esure to pay that for you

    DD's are a minefield - even with no money in your account the bank are obliged to honour any DD claimed regardless of whether this takes you overdrawn or not.

    saxo_appeal;6324013

    Yeh that's what I'm doing, I'm also asking why it was set back up under … Yeh that's what I'm doing, I'm also asking why it was set back up under no authority from myself.



    Did you get Esures agreement to cancel the direct debit,If you didnt then you can end up with all sorts of problems down the line when applying for credit,

    Under the terms of the Direct Debit guarantee you are entitled to a full and immediate refund from your bank or building society of any amount taken from your account in error, this includes when you have cancelled a Direct Debit but funds have still been attempted to be taken.

    Can I ask, did your bank pay the DD? If so they are potentially in the wrong and should refund you the fees. The car insurance company, although you may have notified them of the cancellation may not have had sufficient time in which to cancel the DD from their end before the next collection date. I.e. you cancel on the Monday, payment is due on Tuesday. The collecting company will have already submitted their bacs file for the collection at the latest on the Monday, so it is too late (DD's go through the three day bacs cycle)

    If you need any more help let me know,

    Original Poster

    I cancelled the DD well before the end of august. I then called them on the 2nd of september to properly cancel the policy. The guy on the phone at that time said that's fine we will send out paper work with the cancelation fee (60).
    I think what has happened is they have reinstated it as no money was able to be taken on the 1st (due date). The reinstate was going through and was up on the 8th, that's when they tried to take 31.20 but couldn't.
    Although are they allowed to reinstate the DD when the policy was cancelled at their end AND I had cancelled the DD?

    Original Poster

    As I had no money in the account the fee could not be paid, I was charged 35. The DD was not paid

    I called esure on the 2nd to cancel and they say it takes 3days for it to go through, the DD was set back up on the 8th.... So it's esure to blaim I think

    Was any advance notice sent to you - companies are required to give 10 working days (plus postage time) notice to take a DD when one is set up, so if they re-instated the DD they should have sent you confirmation and advance notice along with a copy of the DD guarantee. Have you spoken to e-sure to see if it was genuine mistake - if so they should refund the fees for you.
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