www.iva.co.uk

Hello there
I’m sorry if this question isn’t allowed as it’s about bankruptcy and not an IVA.

I was made bankrupt in 2018 by HMRC.
I am now discharged from that bankruptcy since 17th May of this year.

Three weeks ago I received a letter from my vehicle and house insurers (NFU) informing me that I should have told them about my bankruptcy and that they were considering cancelling my cover.

After writing to them as they requested and explaining the circumstances they have indeed cancelled my policies from the date of my bankruptcy.

I’ve not made any claims with them during the time I’ve been a customer which is ten years.
They say they are keeping the monies I paid them, my question is can they do this?
If I’d have known that I needed to inform them of a bankruptcy then I would have. For them to say they’ve discovered my bankruptcy some thirteen months after it started somehow seems as though their “policy validation department” isn’t very effective?

Can anyone advise me if they are entitled to cancel “as though the policies were never in place” (the wording on their letter) and keep my £1950?

Many thanks

I cannot common what they can or cannot do and would suggest you pop into your local CAB or have a word with whoever they are governed by or the ombudsman --- https://www.financial-ombudsman.org.uk/.

I would have thought that if they were making it so that "the policies were never in place", they should have to return any policy .... to do otherwise would be taking the money for nothinbg in return -- tantamount to theft ! (Just my uninformed opinion).

I rather suspect that they have been checking credit records.

I would definitely complain.

Have you managed to source any other insurance?

Hi there
Yes I have and for a huge difference in cost to my benefit.
Maybe I got a little complacent with the NFU over the years

Doesn't matter - they should not have done this to you.

You'll probably find it was in your terms and conditions to inform them of any bankruptcy and therefore you would have breached those by not informing them. They would then be perfectly within their rights to cancel your policy I'm afraid.

Hi and thanks for replying.
I’m not disputing their right to cancel my cover.
I did explain to them that I don’t really read through the terms and conditions as don’t the majority of people.
Certainly none that I have spoken with.

My point is surely they cannot have it both ways? Keep the payments and cancel the cover?

If I’d have made a claim for something then I could understand them either not paying out or wanting to recover their payment.

I didn’t deliberately set out to deceive anyone, now that I’ve spoken to about a dozen people who all tend to say keeping the money seems wrong I’ll write to them and request it be refunded.

If they decide to withhold it then I’ll let a small claims court decide and I’ll stand by their decision.

I never informed my insurance (car and home) about my IVA and had no problems at all.

I also agree that most of us do not read T&C - I don't.