The latest scam by insurance companies is to automatically renew insurance then try to claim they were doing their customers a favour.
The first most know about this is when they see money has been taken out of their bank accounts, then being charged to cancel an insurance policy they never wanted.
Even when people have contacted their insurance company and told them they have no wish to renew their insurance policy, they are finding it is being automatically renewed behind their backs.
And it comes as no surprise, that when the policy is automatically renewed, it comes with a big hike in premiums.
Very often the poor duped customer now has two insurance policies as was not expecting auto-renewal of the original policy.
Talking to the girl behind the bar at The Barn, she said she had been hit by this scam. She has a motorbike that is off road, no road tax, and yet she was being charged for insurance. This raises an interesting point, as it is necessary to show you have Road Tax to obtain insurance.
If your bank balance goes overdrawn due to unexpected withdrawals, you then get hit with extortionate bank charges.
Yet another reason not to set up Direct Debits as you are allowing a third party to withdraw money from your account.
This is like going shopping in Tesco (which I would not dream of), then next week finding shopping dumped on your doorstep, Tesco debiting your account, and when you query it with Tesco, being told, well that is what you bought last week, we are doing you a favour, we saved you the trouble of going shopping.
The Financials Ombudsman has received nearly four hundred complaints in the first six months of this year from victims of this insurance scam.
If you are insured, and need to call upon that insurance, you have a job getting the insurance company to settle.
A friend had a burglary at her house. One and half years later she is still waiting for the insurance company to cough up.
We have a financial sector, banks and insurance, that is out of control. Occasionally they get hit with multimillion pound fines, although this sounds a lot, it is small change and for the sector it is business as usual.
- Money box – auto-insurance scam
- Money Box – auto-renewal insurance scam
- Congratulations! Your insurer has just ripped you off: Customers duped into renewing expensive policies