Cancelled my car insurance policy recently and have been told by AAMI to provide an authorisation code to the bank to have them refund the money elsewhere. Call HSBC they say the account is closed and the money will bounce back to the merchant (this is exactly what I said would happen to AAMI). AAMI keep insisting that this will be refunded but refuse to provide a cheque or other means of refund. What are my options?
Thanks, I submitted a complaint. Hopefully this will help
It's AAMI
So lucky!
The standard process is to refund back to where the money originally came from. Since your account is closed, they'll need to go through a non-standard process.
I highly don't they're trying to avoid refunding your policy - I think whoever you've been speaking to is being lazy or just doesn't know. Ask to speak to their supervisor or mananger.
Banks and insurers up to old tricks shafting their customers at every opportunity they get. There is no wonder they're some of the most hated businesses in the world.
How is this HSBC's fault?
By default. They're a bank.
What a bunch of bankers
If they don’t refund you, they will need to return it to the government as unclaimed money. So, I don’t think that they are avoiding to refund you. It would just be a matter of persuading them. Send them an email complaint, they will resolve it. If not, financial services ombudsman would be able to get them to refund you.
Give them a new bank account number.
Nope they are refusing to refund to another method for 'security reasons'
I've had stuff refunded to a closed account before. The bank just sent me a cheque a couple of weeks later. Is this not standard?
No. If the account is closed it will bounce back after a cut over date.
No I will agree with Ados here, I had a refund to a closed account. Bank sent me a cheque.
HSBC said money will bounce back they can't do anything with it quoted by support agent. When refunded did you guys do anything or did the bank automatically send the cheque without you doing anything? It's HSBC they are pretty useless at retail banking so I honestly don't think theyre going to be too concerned.
This has been my experience as well.
OP has not stated if this is a credit/debit card or a bank account, however I'm pretty sure it's part of Visa and Mastercard rules that any payment taken from a card must be returned to the same card - for security reasons.
EDIT: OP stated below that they paid with debit card.
O.P. go online, update the account's banking details, for direct debit, then cancel. Funds should go to the correct account.
The problem is I used the debit card linked to my bank account to pay
Should still be able to update banking details linked to the account, if it account is still active.
Last time I got a refund from AAMI, they sent me a cheque. This was 3 years ago when I sold my car
Not quite AAMI and not quite car insurance but I've been in a similar situation with PHI before. They insisted they had to try to refund to the credit card that I used to pay the premium in the first place and once that came back as rejected, they'd mail a cheque out to me.
Interesting, I'm hoping they will realise that this is the only method but they are being stubborn. Also what's PHI?
Private Health Insurance
Get a signed stat Dec stating old and new accounts and send it to them
Make a Complaint:
https://www.afca.org.au/