Why have I been charged for cancelled car insurance?
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Q In May this year I took out an insurance policy for my car. With a two year no-claims bonus it was to cost £1,000 which at the age of 19 was OK. There were complications with my previous insurance company and I couldn’t claim my no-claims bonus. This meant that my new policy would go up to £2,000 which was very much not OK. So I cancelled the policy and was told over the phone that I would owe the company £100 or so for which they would bill me. However, I recently received a call from a debt collection agency claiming that I owe them £1,800 for the outstanding balance on my cancelled insurance policy! There is no way that I can pay this and as far as I am concerned I shouldn’t have to. The debt collection agency said that they would declare me bankrupt. What does this mean to me a 19 year-old going to university next year? I have no written proof of what was said on the phone - does this mean that I have to pay them? Surely what the insurance company have done is illegal? I really am in the dark on this one and any help would be more than appreciated More : guardian.co.uk |