Premium arrears due to direct debit mix up

Emmaipad1

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I have just discovered that my Life Assurance premiums have not been debited from my bank account for the last 8.5 years as someone else's bank account details were mistakenly linked to my policy details at the insurance company. The monthly amount was small and so went unnoticed by me. An amendment was made somehow about 1.5 years into the policy but I need to find out more about this. The other customer has been refunded and the company now expects me to pay the 2.5k arrears! Does anyone know where I stand if it turns out it is a mixup solely on their side?
 
................................and you never noticed that your account was not being debited? Anyway, its life assurance, so by posting, you are obviously alive, (thank the good Lord). Why not simply take out another policy with another company?
 
Did you not get annual statements? I find it hard to believe that you never missed these payments coming out of your account, mind you the other person had these payments coming out of their account for 8.5 years also. Just shows the importance of checking bank statements every month. These days with e-statements so popular, I guess less and less people are taking the time to check them. I only do it sporadically myself.
 
Tell them to sod off and that you fully expect them to continue to policy as is but with the premiums taken from the correct account. There were 3 parties involved in this and none of you noticed the error for 8 years. It was however, the insurance company's mistake, not yours. Make sure you talk to a manager or someone with the authority to write off the arrears.


Steven
www.bluewaterfp.ie
 
Ravima and Moneybox, you are obviously questioning my honesty and I can assure you I did miss it. Why would I knowingly allow a bill to accrue for 8.5 years?? Can't believe you are frequent posters with your cynical replies. I did not get any statements or correspondence of any sort from the insurance company in that time and I do not study my bank statements routinely either. If it was my mortgage or car I would have missed it given the large amounts but not a 20 quid direct debit.

Steven, Thanks for some real advice...spoke to a Supervisor yesterday who is following up and I will certainly go higher as needed.
 
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Does anyone know where I stand if it turns out it is a mixup solely on their side?

Hi Emma,

I can’t see how the mix up could be solely on their side.

You should have noticed no monthly direct debit for 8.5 years to your insurer from your account.

You should have wondered why you had no correspondence whatsoever from your insurer in 8.5 years.

I am not questioning your honesty, I can see how this could go unnoticed, but that does not mean you are exempt from any responsibility just because your Life Assurance Company might have made the initial mistake 8.5 years ago.

It would seem unreasonable to expect you to pay the full €2.5K, perhaps a compromise could be reached.

What do you think would be a fair resolution ?
 
Thanks for your reply twofor1. I agree I need to be more vigilant with my statements in future, I guess I naively trusted the direct debit system, after all isn't it there to ensure our bills are paid on time and all the time. I would definitely worry about the other customer as the dd would have appeared on their statement as clear as day, in my defence I would not have been looking for missing payments. On the correspondence bit, not sure why they would need to get in touch but maybe that's another issue I should take up with them. What do other insurers do?

I don't know what's fair....in this case there are actually 4 parties involved, the bank that initiated the amendment that led to the error on the account(not my bank), the insurer, the customer who was inadvertently paying and me.

What's not fair is me being taken to the cleaners for not analysing my account for missing payments as a result of someone else's cock up.
 
Unfortunately there is an onus on you, the insured, to ensure that your policy is being paid and unfortunately it is at the end of the day your bill.

I would definitely make a case with the insurance company and do your best to come to some compromise. As it stands at present it is only the insurance company that ahve lost out on their premium (as the had to refund the customer) but if they have paid nothing out on you in those 8.5 years then technically no loss of actual funds to them. I would think that some agreement could be reached.

Could you go elsewhere is not?

Best of luck with it, very unfortunate situation for you.
 
Ravima and Moneybox, you are obviously questioning my honesty and I can assure you I did miss it. Why would I knowingly allow a bill to accrue for 8.5 years?? Can't believe you are frequent posters with your cynical replies. I did not get any statements or correspondence of any sort from the insurance company in that time and I do not study my bank statements routinely either. If it was my mortgage or car I would have missed it given the large amounts but not a 20 quid direct debit.

Steven, Thanks for some real advice...spoke to a Supervisor yesterday who is following up and I will certainly go higher as needed.


Where in my posting do I question your honesty?
 
if they have paid nothing out on you in those 8.5 years then technically no loss of actual funds to them. I would think that some agreement could be reached

I have not claimed even once on my life policy in over 30 years, should I be due a refund ;)

Hopefully though, some agreement can be reached.
 
€20 per month from one customer is not going to go far towards their light and heat. Be realisitic.
 
The company has offered to split the difference and allow me 6 months to pay the arrears. Does that sound reasonable? Id like to wrap this up as I'm concerned my policy will be put on hold or cancelled. Thanks
 
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