I recently had to renew my car insurance and decided to stay with the same company. Obviously in the position i am in i cant afford to pay it all in one go so opted for the same process as previous years and paid monthly.
Yesterday i recieved a statement from Close Brothers who provide the finance for my insurance.
I am just a bit concerned that this is classed as credit as Close Brothers are a finance company? Can anyone shed any light as to whether this is credit? I mean, no credit check has been completed and as far as i was concerned i was just paying my insurance monthly!!
Can someone put my mind at rest that what i am doing is above board.
Car insurance paid by instalments is not deemed to be taking credit - as if you don't pay they will cancel the policy. So what you are doing is completely acceptable under the terms of the IVA.
Now I can no longer use the plastic to pay mine all in one go, I've been on instalments for a few years now.
My contents insurance is also paid monthly.
Sharing from experiences of dealing with debt
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If the Insurance Company lets you pay them monthly then I agree with Melanie, but reading the first post again the finance is coming from a different source and as such would appear to be a credit agreement.
If an Insurer uses a premium funder then the insurer receives the full annual premium from the funder up front, and the client then has to make the agreed monthly repayments on what is actually a loan.
I would be pleased to look at your documents and see exactly what arrangement you have. If you wish me to do this please e-mail or fax them to me
Hi
John is correct, however it will be at the IPs discretion and I have never come accross a case where a forum member has had a problem paying for insurance on a monthly basis.
The payments are loaded in a way that becuase of the deposit you are always in front with payments and if you stop paying they will simply cancel the policy, refund part of the payment that should pay off the outstanding finance and you should owe nothing.
Regards
Andy, you are describing the position where the Insurer is funding this themselves. However, when an external premium funder is used, this is not the case.
I have no problem with any of my clients taking out this type of insurance policy in order to ensure that their insurance payments were budgeted for and affordable.
I dont think I would worry about it at all. Sign the form and let your IP know what you have done. I am sure they will be more than happy to be kept informed.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
