Re: Unauthorized bank draft-HELP

Posted by Linda (65.120.51.23) on September 07, 2002 at 02:41:47:

In Reply to: Unauthorized bank draft-HELP posted by Kristan on September 06, 2002 at 17:11:27:

All the 1-800 companies will cancel with a phone call. Some will ask for proof that you have other insurance, but not necessarily. Somebody just didn't get your draft stopped in time. Progressive has a record of your original call to cancel, and probably the fax.

If your bankdraft date was out of whack with your policy date, there could have been "earned premium" in which case, they might have attempted the draft even after you cancelled, but that is not proper. They should ahve stopped the draft, and billed you for the earned premium.

Write up a letter with all details (have your ducks in a row), copies of the fax, the bank overdraft and fee notices, the notices from the payees whose checks were returned unpaid and a bank statement (they can print you a transaction record if you haven't gotten a statement with this all on it). Sned the letter to your state insurace department, and copies to Progressive. They will probably EFT the funds into your account, send you a letter telling you they have done this, and asking you to drop the complaint. Drop it, of course.

For Why Chat, when you cancel by phone, they have a record of it, and they also send a letter to the insured at address of record, restating the cancellation request, and that it is cancelled, blah blah blah. They also notify state DMV's in most states, whether the individual requires proof of financial responsibility or not (SR22) and any lienholders, and they inform the insured that they are doing this.

Life and health insurance companies will suspend the draft when they receive a cancellation request over the phone, but they will then immediately bill the person for that premium, while they wait for written request. They usually send out a form to be signed, they don't wait for the insured to compose and mail a letter.

BIG HINT when cancelling an insurance policy that is on bank draft, don't call to cancel, call to change your mode of payment to a "billed" mode first. Get it off bank draft. Then cancel.

All the insurance companies do this from time to time. Laziness, probably, or they are understaffed and can't get everything done in time.

Linda

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