Trading Standards warns of Satellite Insurance Scam

Satellite television subscribers have been warned to be on their guard against companies selling insurance cover, who claim to be affiliated to Sky.

The warning comes from the Department of Enterprise, Trade and Investment's Trading Standards Service, following an increased number of complaints against satellite warranty cover companies, in recent weeks.

Damien Doherty, Trading Standards Service, explained the scam. He said: "Customers have reported to Trading Standards that they have received letters or telephone calls from insurance salesmen who claim to represent Sky.

"These customers have been led to believe that their existing satellite insurance cover is due to expire and they have been offered another contract for 12 months, at a payment of approximately £7 per month. Customers who agreed to a new contract were then asked to provide their bank account details, resulting in them paying for two satellite insurance contracts.

"Many customers only realised that they had been misled when they noticed the second insurance payment being debited from their bank accounts. The small sum of money being paid out each month ensured that many customers did not immediately notice that they were making double payments. In some cases, it was many months before the scam was detected.

"In addition, some customers have reported to Trading Standards that, in the event of making an insurance claim from these companies, there was no dialling tone on the contact telephone number and letters were not responded to, effectively leaving customers paying for a worthless policy."

Damien Doherty concluded: "If customers are contacted by someone claiming to be from their insurance provider, they should immediately ask for verification of the company for whom they work.

"Customers should never provide bank or credit card details over the telephone. If the call is legitimate, the company should already have customers’ bank account details on record. Furthermore, the company should be willing to give customers an opportunity to return the call, when they are ready to renew their contract. It is important to note that if the caller is genuine, they should always provide a copy of customers’ cancellation rights."

Consumers who have complaints about satellite insurance companies should contact Consumerline on 0845 600 6262 or 028 9025 3900 or alternatively log onto the Consumerline website at www.consumerline.org.

Notes to Editors:

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