We Fall Out With Premium Credit

FINANCIAL OMBUDSMAN - We fall out with Premium Credit.

We insured the ABC battlewagon with Policy Expert a car insurance broker whose principles policies that they sell every month are underwritten by finance firm, Premium Credit Limited, Ermyn House, Ermyn Way, Leatherhead, Surry, KT 22 8UX.

Our monthly premium was £30.24 this year, but we missed a payment last year and we found that Premium Credit Limited had banged on a hefty £27.50 for missing a payment. This seemed excessive, as those on low incomes do not necessarily have a large float in the bank. Sometimes the poorest are juggling constantly, trying to avoid dropping a ball. Living on a low income is not easy and as we know, being poor is very expensive.

We complained to the Financial Ombudsman, and we were given the advice to read over the insurance contract. That said the missed payment fee was £20.50. Eureka! We lodged a complaint with the Financial Ombudsman and after an investigation the FO said that Premium Credit, could amend their terms, and they said the Company had sent out an email increasing their charges.

At the ABC – we said we had never received an email advising us of this increase and furthermore why should these penalties be so high as they do not relate to any costs being incurred. The cost of one computer talking to another is not £28.50 or even sending out an automated letter.

These were punitive damages which are not allowed in English Civil law, or so we believed?

We found that Premium Credit could not produce a copy of this [alleged] email. Nor a list of to whom the email was sent??? The Financial Ombudsman had said that Premium Credit had said they deleted the email for data protection reasons. Hmmmmm…we thought?

We said that was nonsense, if you are amending a contact, 'data protection', means keeping a copy of the email we argued. Protecting customers can mean keeping data, not deleting it

The Financial Ombudsman contact, said he believed that Premium Credit had sent out an email, even though this adjudicator admitted there was no evidence.

We decided to cancel our policy and today on the telephone, Policy Expert admitted that Premium Credit had increased their prices very recently to deter people from missing their payments. For us that would mean a cost of almost £60 at a time, when people on Universal Credit have just around £100 a month left over for food and other basics.

People in rural locations and those looking for work need vehicles and at the ABC we feel these rip-off charges need to be looked into. 

ABC Comment, Premium Credit - NO THANKS

ABC Comment, have you suffered from rip-off penalty charges?