Premium Credit & Independent Insurance
25 June 2001, 07:45 PM
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My house "buildings" insurance is (was) with Independent Insurance.
After reading the details concerning Independent going into provisional liquidation here (Rum*/Dave T-S) and later in the press, I had decided that I would probably let my Independent Policy run. You don't often claim on the buildings insurance after all.
However, my view has changed after receiving a letter from "Premium Credit" (PCL) today. The letter is (I think) supposed to answer questions about Independent. However, the main things it mentions is why you should not cancel your direct debit if paying monthly.
It mentions that although your bank statement shows entries being paid to "Independent", they are paid direct to PCL. In fact my bank statement always shows "Independent Ins", which is pretty clear to me.
They also state that when you filled out the Direct Debit form, you enter into an instalment loan agreement with PCL. How many people would really look carefully at who a DD would go to, and then not realise that PCL might be the holding company for Independent Insurance?
I've checked all of the paperwork that I can find, and all of the paperwork that mentions monthly repayments is always on Independent branded paperwork, and never mentions PCL....
I've a good mind to stop the payments now, and take out other insurance.... even though I was quite happy until I received this aggressive letter!
After reading the details concerning Independent going into provisional liquidation here (Rum*/Dave T-S) and later in the press, I had decided that I would probably let my Independent Policy run. You don't often claim on the buildings insurance after all.
However, my view has changed after receiving a letter from "Premium Credit" (PCL) today. The letter is (I think) supposed to answer questions about Independent. However, the main things it mentions is why you should not cancel your direct debit if paying monthly.
It mentions that although your bank statement shows entries being paid to "Independent", they are paid direct to PCL. In fact my bank statement always shows "Independent Ins", which is pretty clear to me.
They also state that when you filled out the Direct Debit form, you enter into an instalment loan agreement with PCL. How many people would really look carefully at who a DD would go to, and then not realise that PCL might be the holding company for Independent Insurance?
I've checked all of the paperwork that I can find, and all of the paperwork that mentions monthly repayments is always on Independent branded paperwork, and never mentions PCL....
I've a good mind to stop the payments now, and take out other insurance.... even though I was quite happy until I received this aggressive letter!
25 June 2001, 09:12 PM
#2
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Tim
If my Independent premium finance agreement is anything to go by, on the face page it mentions Premium Credit SIX times....the terms overleaf mention PC seventeen times.
Premium Credit have no corporate connection with IIC, they just provide the finance. Legally your contract is with them and you have to pay them in full, if you want a refund you will have to cancel the policy (and the chance of a refund is slim).
I am certainly not defending PC or IIC - I have TWO Imprezas valued at £60,000 the pair insured with IIC and stand to lose £3,000 plus on each of them if I have a theft/own fault loss...
If my Independent premium finance agreement is anything to go by, on the face page it mentions Premium Credit SIX times....the terms overleaf mention PC seventeen times.
Premium Credit have no corporate connection with IIC, they just provide the finance. Legally your contract is with them and you have to pay them in full, if you want a refund you will have to cancel the policy (and the chance of a refund is slim).
I am certainly not defending PC or IIC - I have TWO Imprezas valued at £60,000 the pair insured with IIC and stand to lose £3,000 plus on each of them if I have a theft/own fault loss...
25 June 2001, 09:48 PM
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Ah - I am missing something. I can't find a copy of a "finance agreement" or some-such. I've been with IIC for five years, and must have foolishly binned the copy that I presumably must have once had.
However, I'm sure that other policies I pay (through the same broker) for car insurance through NIG-skandia and Norwich Union don't have finance agreements, they just have direct debits.
I've just looked at the letters I got to confirm my IIC monthly payments, and realise that they are all titled "The Independent Insurance Instalment Plan#", and then in v small print at the bottom of the page, over the top of a pre-printed line of text about calls being recorded, it says "#financed by Premium Credit Limited...blah blah... Epsom"
Not exactly clear though.
---------------
I can see that if I want to cancel the policy now, they will probably still demand payment. However, if all this hadn't happened, and I'd wanted to cancel my policy after a month or so, surely I would have been able to get a refund then? Presumably PC would have been able to get a refund from IIC.... this of course won't happen under these circumstances...
...or could it. Surely it might actually be in the interests of the liquidator to allow policy holders to surrender their policies - then they would only have to pay a controlled amount of premiums back, rather than risk keeping all of the premiums, but having some monster claims....
However, I'm sure that other policies I pay (through the same broker) for car insurance through NIG-skandia and Norwich Union don't have finance agreements, they just have direct debits.
I've just looked at the letters I got to confirm my IIC monthly payments, and realise that they are all titled "The Independent Insurance Instalment Plan#", and then in v small print at the bottom of the page, over the top of a pre-printed line of text about calls being recorded, it says "#financed by Premium Credit Limited...blah blah... Epsom"
Not exactly clear though.
---------------
I can see that if I want to cancel the policy now, they will probably still demand payment. However, if all this hadn't happened, and I'd wanted to cancel my policy after a month or so, surely I would have been able to get a refund then? Presumably PC would have been able to get a refund from IIC.... this of course won't happen under these circumstances...
...or could it. Surely it might actually be in the interests of the liquidator to allow policy holders to surrender their policies - then they would only have to pay a controlled amount of premiums back, rather than risk keeping all of the premiums, but having some monster claims....
26 June 2001, 07:50 AM
#4
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Tim
It's the old thing - people only read the small print when there's a problem.....me included
When does your policy expire?
The provisional liquidators have indicated they are keen to allow cancellation and possibly refunds as they are wanting to reduce liability for exactly the reasons you state.
It's the old thing - people only read the small print when there's a problem.....me included
When does your policy expire?
The provisional liquidators have indicated they are keen to allow cancellation and possibly refunds as they are wanting to reduce liability for exactly the reasons you state.
26 June 2001, 10:19 AM
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I'd give you local CAB a ring, I think you will find that a finance company is jointly and severally liable for services provided. Much like the situation with Credit Cards. now you paid for a service (insurance with an excess of X) and now that service is being denied you (you are being offered insurance with effectively a larger excess), so it could be said that the finance company are liable.
Now this letter from PCL, may be an attempt to stop people cancelling their direct debits left right and centre, which you MAY be entitled to do. Worth checking.
Now this letter from PCL, may be an attempt to stop people cancelling their direct debits left right and centre, which you MAY be entitled to do. Worth checking.
26 June 2001, 10:57 AM
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My car insurance is with independant, 4-5 months to run, and was paying by direct debit... basically I'm in the same boat, I hopefully find out either way, whether a) my insurance is ok til the end of the year, b) i get a refund or c) I have to keep paying Premier Credit and take out a second policy...
It'll be sods law that Premier Credit will probably handle the next one too
Not an overly happy person currently.
One thing I will say though, is Rum* is doing his best for me, I'm just glad I've got him fighting my case, other insurance companies wouldnt be so pro-active about this stuff IMHO. Cheers Rum
Alex
[This message has been edited by DrEvil (edited 26 June 2001).]
It'll be sods law that Premier Credit will probably handle the next one too
Not an overly happy person currently.
One thing I will say though, is Rum* is doing his best for me, I'm just glad I've got him fighting my case, other insurance companies wouldnt be so pro-active about this stuff IMHO. Cheers Rum
Alex
[This message has been edited by DrEvil (edited 26 June 2001).]
27 June 2001, 02:56 PM
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Just to add my penneth regarding the DD...
...I have just renewed my insurance with a company called Flint who use PC as their financial backer. The mandate form has Flint at the top and PC information in the credit consumer act section at the base of the form.
That reminds me - I must send it off!!
Jim.
...I have just renewed my insurance with a company called Flint who use PC as their financial backer. The mandate form has Flint at the top and PC information in the credit consumer act section at the base of the form.
That reminds me - I must send it off!!
Jim.
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27 June 2001, 08:34 PM
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Cheers Alex....its nice to have a few pleasant comments....they have been few and far between over the last 8 days...
We are doing the best we can given the circumstances...alas (and quite rightly) some people do not see it that way!! ME included I have lost circa £1,700.00 in Motor and Household premiums for myself ...and I was the fool that paid them up front (renewal date 25.05.01!!!)...
Hopefully, things won't end up being too bad..
More news to follow in due course.
Thx again to all who have given us positive feedback in view of the Cr@p situation.
Rum
We are doing the best we can given the circumstances...alas (and quite rightly) some people do not see it that way!! ME included
I have lost circa £1,700.00 in Motor and Household premiums for myself ...and I was the fool that paid them up front (renewal date 25.05.01!!!)...Hopefully, things won't end up being too bad..
More news to follow in due course.
Thx again to all who have given us positive feedback in view of the Cr@p situation.
Rum
28 June 2001, 10:34 AM
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Tom,
it's not your fault that IIC are in the trouble they are, so don't be so hard on yourself!
Must say that you lot are working way above and beyond the call of duty, hats off to the lot of ya.
it's not your fault that IIC are in the trouble they are, so don't be so hard on yourself!
Must say that you lot are working way above and beyond the call of duty, hats off to the lot of ya.
28 June 2001, 10:54 AM
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Yep, it's thanks to Rum and Co that I probably have not lost the £4** for my household insurance which was sorted out at the start of June.
Not a lot compared to others, but having just bought the house things are a bit tight, and is probably the difference between having to sell the car and not.
Cheers, the work being put in by your lot is appreciated
Not a lot compared to others, but having just bought the house things are a bit tight, and is probably the difference between having to sell the car and not.
Cheers, the work being put in by your lot is appreciated
28 June 2001, 09:15 PM
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Tom (Rum) - As i said in the other post in General, the only grievance (can't spell!) I have is that I can continue to deal with you, as you've have been an excellent broker, top notch service and friendly advice. All in all, very much appreciated by me, and I will be back for house insurance as my driving record doesn't count against me on that, does it 
?
Anyway mate, chin up, and keep up the good work, and you are always welcome to come out for a beer when you are in the area. Hopefully catch up with you soon.
Cheers, Alex
?Anyway mate, chin up, and keep up the good work, and you are always welcome to come out for a beer when you are in the area. Hopefully catch up with you soon.
Cheers, Alex
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