ComplaintsforMagnum Insurance Agency Co., Inc.

• Initial Complaint

  09/06/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I got a letter from the company headquarters on 8/29/2023, (This letter has the *** received date 8/16/2023 stamped on envelope), stating my account was past due, and be cancelled on 8/28/2023. So the day I opened the envelope it was already cancelled and I drove my car without insurance (Not knowing it) for a day, very risky. The letter also states notice day: 8/15/23. Account number ***********. Due date 8/14/23. Amount due ****, Late charge 1.00.But, ***** from Aurora agency (Not working anymore for Magnum), called me on 7/6/23 and I paid $397, which she told me is the total payment for a year. On 7/14/23, I got a letter from headquarters, stating that I must paid some extra (Don't remember the amount), so I went to the Aurora Agency and was told I needn't to pay, and it was a mistake. So, on 8/30/23 I went to this agancy to complain about my policy cancellation, having paid in advance for the year. They said ***** made a mistake and I must pay $111.98, extra, in order to get my policy actual again. I did paid that amount on 9/5/23. I claim this amount back, because I paid in full for the year on 7/6/23. It's clearly an abuse, because they took the envelope to the *** on 8/16/23, 2 days after the due date, and I didn't open it till 8/29/23. There's either negligence or ill intentions on this doing. How could Magnum cancel my policy, having received $397 in advance?And the worst part is that I drove my car for a day without insurance (Not knowing it). Nobody called me, not certainly Aurora agency, neither the headquartes office.I have proof of everything I have stated on this complaint.

  Business response

  09/21/2023

  Dear BBB,

  ********************** renewed policy # PAIL00162664 with Direct Auto Insurance *** on 7/5/23.  The renewal was to be effective from 7/14/23 7/14/24 for $433.00 + $25.00 Agency Service Fee.  ********************** paid $392.00 +$5.00 credit card processing fee at time of sale.  This left his account with a $61.00 balance on his account to be paid on or before 7/14/23.  MFS *********************** notified ********************** on 8/15/23 of the outstanding balance and gave ********************** until 8/28/2023 to make his payment.  ********************* didnt make his payment until 9/1/2023, so unfortunately by this time his policy had already been cancelled and finance charges, late and cancelation fee were applied to his account.  We understand that MFS Premium Finance uses the US ************ and their notice was stamped as received by the *********** on 8/16/2023.  As far as to why ********************** didnt receive said notice until 2 weeks after it was sent, that is something we cannot control. 

  We do value ********************** as a customer and are issuing a credit of $25 back onto his credit card as a gesture given the unusual circumstances of his mail not arriving for nearly two weeks after it was provided to the post office.

  Thanks,

  *************************

  Customer response

  09/22/2023

   
  Complaint: 20566020
  
  I am rejecting this response because: Magnum's argument that I only paid $397 instead of $433 + $25, is invalid. I paid that amount ($397) because ************************* (Worked at Magnum Aurora) told me to so. If she told me to paid $433 +$25, I would have done it with no problem. She's not working anymore there, and it's tricky, because I always deal with *************************, for all my renewals. They delayed the cancellation notice and nobody ever called me to pay the additional amount. I even went to the ************* when a first notice arrive to my mail box. They told me, after checking in their computer system, that the notice was extempotaneous, a mistake of the system. The worst part is that I was driving my car with a cancelled policy insurance, without knowing it. Have in mind that I paid $397 in advance, so supposely I could have been covered for the next 10 months, but they cancelled my policy as if I were overdue. This is the most unfair practice of this company, and they usually do so with other customers, for the complaints I've heard in other companies, from which I was looking for insurance.

  
  
  Sincerely,
  
  *******************************

  Customer response

  09/26/2023

   
  Complaint: 20566020
  
  I am rejecting this response because: This is the second time I'm responding to the same Magnum answer. They put the cancellation notice on the mail the two days after my policy was due. Even worse, I paid in advance that amount because ************************* told that was the anual fee. Then they canceled my policy as if I were paying month to month, in which case, I paid for over 10 months in advance. If it were monthle payments, and I didn't pay, then they would be right to cancel my policy, Nobody called me, and I was driving my car four days, with all the risks it implies. Besides, at the first notide, I went to Aurora offi, and was told that everything's okay. There's a disconnection, lack of communication between the headquarters in *********** and the ************** This is not my fault, and this company abuses its customes.
  
  Sincerely,
  
  *******************************

  Business response

  10/19/2023

  A refund of $25 was sent to the client.  There was nothing more that we were able to do.

   

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