What happens if I cancel direct debits on my insurance?

LoadingFavourite

This topic contains 6 replies, has 4 voices, and was last updated by Profile photo of Inez Inez 7 years, 11 months ago.

  • Author
    Posts
  • #54563
    Profile photo of Anonymous
    Anonymous
    Participant

    We are particularly annoyed with our bank making us take out life insurance policies to cover a bank loan. Found out later they can’t make us, but we have now decided to cancel policy.

    It is a yearly renewable policy, and the year ends in June and has been running for a few years, increasing the premium each time. However, we have a cashflow problem at the moment and I am considering cancelling the direct debit for the policy now. We pay this monthly.

    What do you think the bank will do?

  • #88542
    Profile photo of Anonymous
    Anonymous
    Participant

    Presumably cancel the cover. I would be inclined to tell them you no longer wish it

  • #88545
    Profile photo of Inez
    Inez
    Participant

    Cancel it, it only cancells your cover but ensure there isnt any small print in the loan document stating you must have it. Even so theres not a lot they can do

  • #88546
    Profile photo of Anonymous
    Anonymous
    Participant

    Funnily enough we don’t seem to have any copies of the loan document. We can see the loan online and it shows the basic details, interest rate, date of payment, future payment schedule etc.

    We have lots of papers to do with the life insurance and credit insurance we had to take out.

    I was going to wait until this year is finished to cancel it, in June, but as you say, if I do it this month there is not much they can do. I think there is a clause that says if you don’t pay the premium the policy is cancelled.

  • #88549
    Profile photo of Inez
    Inez
    Participant

    There may be a clause stating if you dont give sufficient notice of cancellation then automatically it is restarted! Be careful!!

  • #88646
    Profile photo of Anonymous
    Anonymous
    Participant
    Inez wrote:
    There may be a clause stating if you dont give sufficient notice of cancellation then automatically it is restarted! Be careful!!

    Good advice ,Inez, Spanish banks know of more ways to extract money out of people than anyone else.

    It was illegal for them to insist on someone taking out a mortgage having to take out household contents insurance with the bank granting the mortgage, but if someone refused then NO MORTGAGE.

    Banks are not known for their transparency , Spanish banks offer the transpareny of untreatd sewage.

    Be very careful, I know people do not read small print or because of language difficulties would n´t be able to any way, but always be careful signing contracts with banks, telephone and satellite tv companies, they nearly always include a minimum period on the contract of between 12-18 months. Internet and mobile phone contracts are imfamous for this.

    Be very careful with advice or information from Telefonica amongst others

  • #88650
    Profile photo of Inez
    Inez
    Participant

    DONT start me on with Telefonica! Im so glad to be rid of them!

    Have a great pre xmas week everyone, I have started a little earlier in the merriment, which should continue until around the 8th or january

    Oh happy days!!!!!!!!!!!!!!! 😉

You must be logged in to reply to this topic.