Direct Line Missed Payment – Here’s What To Do
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This information and enquiry service is not a full financial assessment or a guarantee of suitability or debt write-off. Debt solutions are not suitable for everyone. Fees may apply, and your credit record and assets may be affected. Get advice on your circumstances before choosing a solution.
MoneyNerd introduces enquiries to The Debt Advice Service and may receive a referral fee. For free, independent guidance and help finding a debt adviser, visit MoneyHelper.
This information and enquiry service is not a full financial assessment or a guarantee of suitability or debt write-off. Debt solutions are not suitable for everyone. Fees may apply, and your credit record and assets may be affected. Get advice on your circumstances before choosing a solution.
If you’re a Direct Line customer, and you’ve missed a payment, you’re in the right place. Every month, over 170,000 people visit our website for advice on issues just like this one.
In this article, we’ll cover:
- How Direct Line deals with missed payments
- Steps to take if you can’t afford a Direct Line payment
- The impact of a missed payment on your credit score
- What happens if Direct Line hands over your details to a debt collection agency
- Ways to manage and reduce your debt, legally.
We know you might be worried about the consequences of a missed payment or about not being able to pay your debt; some of us have been in your shoes.
Don’t worry; we’re here to help you understand how to handle a missed Direct Line payment.
What you should do if you miss a payment?
It’s an easy mistake to make. We all lead busy lives. Circumstances change, especially over the last couple of years.
You could miss a Direct Line payment for several reasons.
Whether it’s because of a computer glitch, you did not have enough money in an account, or you just forgot about it.
Whatever the reason for a failed or missed Direct Line payment, contact their support as soon as possible.
Otherwise, the consequences can be far-reaching!
Debt advice: Continue to the debt enquiry form
Advertisement. MoneyNerd is a commercial introducer, not a debt adviser. The Debt Advice Service, a trading style of Pacific Financial Solutions Limited, offers free debt advice with no obligation. If you request an introduction, your details are shared with them so they can contact you.
Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you proceed with a debt solution through The Debt Advice Service. MoneyHelper offers free, impartial money guidance and help finding free debt advice.
First, make sure your insurance payment didn’t go through, which can happen when you do it online!
Do this to confirm if the payment was made or not:
- Check your bank account – the information can be found in the ‘recent transactions’ section
- Contact Direct Line support and ask whether they received the payment or not
If you have the funds to make the payment, I advise you pay the outstanding if the first one fails. When you don’t, things could be more challenging to resolve.
How do they deal with it?
When there’s a Direct Line missed payment, the provider sends out reminders.
You should contact support as soon as they do if you can’t meet the payment.
If you ignore payment reminders, Direct Line will cancel your insurance policy. So you won’t be insured!
The secret is to stay in touch with Direct Line’s support team. They may be able to help you when you can’t make a payment.
If you don’t contact them, things get more problematic.
Having a cancellation on your insurance record might make obtaining future insurance more difficult or expensive since you have to declare it to all insurers.
How the introduction works
The Debt Advice Service can discuss your circumstances and explain available options, including their benefits, costs and risks.
Options depend on your circumstances. You decide whether to proceed.
Advertisement. MoneyNerd introduces enquiries; we do not give debt advice or recommend solutions. The Debt Advice Service, a trading style of Pacific Financial Solutions Limited, offers free debt advice with no obligation. Complete the enquiry form to share your details and request a call.
Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you go ahead with a debt solution through The Debt Advice Service. For free, impartial guidance and help finding free debt advice, visit MoneyHelper.
The Consequences
The consequences of a failed or missed payment can be severe. Direct Line may:
- Charge you a late or failed payment fee
- Add extra administration costs to your account
- Cancel your insurance policy could be cancelled due to non-payment. You’ll no longer be insured to drive. Your car will not be insured either!
Missed and failed insurance payments can stay on your credit report for up to 6 years!
In short, it could affect your credit score and history, making it harder to get a loan, mortgage, or credit card.
Note that when your policy is cancelled, you must not drive. It’s against the law, and the fines can be high!
Will it affect your credit score?
No, it will not affect your credit score when you miss a Direct Line payment.
This is because the information does not appear on your credit history.
But if you fail to pay your insurance (default on payment), you could see the matter going to a debt collection agency!
In short, it’s better to make an insurance payment on time or as soon as possible after a missed installment.
Will they refer your details to an agency?
Yes, when you default on a payment to Direct Line, they refer the debt to a debt collection agency.
You may get a letter from Allied International Credit (AIC). They will chase you for the money when you default on a payment.
You’ll likely receive letters asking you to contact them to arrange payment. After this, you could receive letters saying a debt collector plans to visit you at home!
About The Debt Advice Service
Use the enquiry form to request a call about your circumstances and available options. You decide whether to proceed.
Advertisement. MoneyNerd introduces enquiries; we do not give debt advice or recommend solutions. The Debt Advice Service, a trading style of Pacific Financial Solutions Limited, offers free debt advice with no obligation. Complete the enquiry form to share your details and request a call.
Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you go ahead with a debt solution through The Debt Advice Service. For free, impartial guidance and help finding free debt advice, visit MoneyHelper.
Debt Help and Support
I suggest getting debt advice if you’re struggling to pay a bill. Don’t ignore things or try to deal with things on your own.
Independent debt charities to contact include:
They provide free, impartial advice. It can help get you out of a debt trap when you fall into one!
What happens if you can’t afford it?
Contact Direct Line support straight away. They could offer to arrange a different payment date for you.
In addition, there are other ways to reduce the cost of your insurance premium.
This includes the Direct Line Mileage Moneyback scheme! Direct Line may also offer you a payment deferral.
My advice is to contact Direct Line if you know you will miss a payment or you can’t afford to pay on time. This way, they know what’s happening and could offer advice and help.
Could you pause insurance?
Yes, you may be able to ‘pause’ your insurance, but you must meet specific criteria. An example is when your car is written off, and you haven’t bought a replacement yet.
However, if you pay your premium in monthly installments, you have to continue doing so!
