Domestic & General continued to take direct debits for fridge freezer insurance ? despite instructions not to
Domestic & General sent me a letter last October offering to renew my (lapsed) cover for a fridge freezer that I had taken an extra year's warranty for in 2008. I did not wish to renew and the letter stated that if I did not inform them of this they would continue to take direct debits without authorisation.
I sent the letter back with a signed note which said that the policy was no longer valid and that I did not wish to have another year's cover. On 20 October they made an application to a bank account I was in the process of closing (and which did not have funds available) for which the bank charged me �30 on a direct debit of �6.44.
On 26 January I called Domestic and General again because I had received another direct debit mandate from them. I spoke to someone who, once he realised the nature of my call, became rude and offhand and almost refused to give me the address to which I should send a strong letter of complaint.
I think Domestic and General are using dubious tactics. I am a lone parent running a small business and the last thing I need is someone taking an uninvited swipe at my bank account. I would like my �30 bank charges refunded as I definitely did not ask the company to set up a new payment plan. HCD, Slough, Berkshire
Extended warranties offer peace of mind in case something goes wrong with an appliance ? but they are horribly expensive in most cases and in some, cost up to half as much as the product they cover. Our standard advice, if you must have an extended warranty, is to shop around to get the best deal ? but bear in mind it doesn't have to be taken out with the seller or manufacturer of the appliance. You can find stand alone warranties using price comparison websites. It is now also possible to buy warranties that cover a number of appliances, such as every electrical appliance in your kitchen.
In your case, this was an old-fashioned communications breakdown that Domestic and General moved quickly to sort out ? once we got involved. While it said it could not trace the letter you sent or any evidence of its receipt, it acknowledged that it continued to take payments from your account, which caused you to become overdrawn and incur bank charges until it was finally cancelled.
A spokesman said: "During this period, the customer continued to receive correspondence from us, which caused her further confusion. As soon as we became fully aware of the issue, we made sure the plan and direct debit were cancelled, apologised, and compensated the customer for her inconvenience." The company has sent you �50, which includes compensation for your bank charges, which you are reasonably happy with.
We welcome letters but cannot answer individually. Email us at consumer.champions@guardian.co.uk or write to Brignall & King, Money, The Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number
Source: http://www.guardian.co.uk/money/2011/feb/12/domestic-general-warranty-overdraft
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