Nationwide Assurance Company - cancelled insurance - but funds still removed from King County Credit Union

Complaints.com received the following consumer message on November 15, 2002:

From:

RE: Nationwide Assurance Company - cancelled insurance - but funds still removed from King County Credit Union

Date: November 15, 2002 T0: Security Exchange Commission FM: Robin Irvine

Pacific Wa. 98047 RE: Fraudulent Removal of Funds

To Whom it may concern, I am reporting a fraudulent removal of funds from my King County Credit Union account by an Insurance company. The name of the company is Nationwide Assurance Company. On 9/20/02. I called and requested insurance coverage from Nationwide Assurance Company. I asked for both auto insurance and renters insurance. I gave them bank information at this time for automatic withdrawal of the policy payments. On or about 10/15/02 I called and canceled both the auto insurance and the renters insurance due to a rise in their premiums. I requested that they stop the removal of funds from my bank account. The company's payroll department informed the woman that I was speaking to, that it was too late to stop the withdrawal. The woman, (I did not get her name), suggested that I talk to my bank and they could put a stop pay on my account. While I was on the phone with this woman, she informed Nationwide Assurance Company's payroll department that I would be putting a stop payment on their right to access my account immediately. The woman I spoke with informed me it was noted on her computer. She requested I send in a written statement with the date that I canceled and if there was any money to be refunded it would be sent by mail within 30 days. I believed at this time that the matter had been resolved. Apparently, that was not the case. On 10/17/02 I called my bank and put a stop pay on Nationwide Assurance Company automatic withdrawals. The cost was $15.00. On 10/21/02 I called to check funds on my account and found that the Nationwide Assurance Company had removed once again, more money from my account AFTER I had put a stop pay on my account. I called my bank and requested information on how Nationwide got my money, if there was a stop pay on the account? Jennifer from King County Credit Union let me know that Nationwide Assurance Company had changed their ID number to bypass the stop pay. I asked if they could do that legally and she said no. It's fraud. She told me that some of the bigger companies know how to get around a stop pay order, and get away with it. Jennifer did not mention what security measures the bank has in place to prevent this occurrence. Jennifer said I had to contact the Nationwide Assurance Company, and they could tel-electronically redeposit the funds into my account, and they have up to 30 days to pay the money back. I then called Nationwide Assurance Company and asked the woman I spoke with if they could electronically replace the accidentally (?) siphoned funds into my account the same way they sucked it out. They were well aware I had cancelled the policy over two weeks ago. I was told they couldn't give my money back the same way they had taken it. I demanded they send me a check. The cancellation was noted on their computer, and the woman that answered the phone could not explain how the company got around the stop pay. She didn't know what had happened. When I informed her that my Credit Union gave me paperwork informing me that Nationwide had changed the ID numbers and the name representing them, she stated that the company would not do that. She again conceded that I had canceled both polices.

She said that she was again noting my decision to cancel, and asked me to confirm the decision to cancel the renters insurance. I did confirm at that time. (I eventually received the cancellation notice of the renters insurance.) I was then placed on hold while she said she was speaking to payroll. When she returned, she said that payroll had told her they hadn't done anything wrong. Any money that was taken could not be replaced into my account but would be sent back within 30 days. She requested that I fax the cancellation notice. On the 23rd of October I tried to fax to the number that was given to me and there was no answer. I tried twice on the 23rd and once more on November 8th. There was no answer. I have documents that reflect this statement. On or about November 5th, I called the Nationwide Assurance Company and let them know that I was calling to check on the money that was to be returned to me. The man that answered the phone informed me that my policy was still active and that they did not cancel polices by phone.

I asked him how it was that I had received a notice of cancellation for my renters insurance and I had my cancellation of my auto noted on his computer. He talked to his payroll department they told him that it was too bad. It was my banks fault. They were the ones who gave them the money. I had the problem with the bank not them. I'm totally confused on who is to blame in this scenario. I just know that I've had money removed from my King County Credit Union account, TWICE, and no one wants to fess up. I have no idea if these debits will continue each month while the two facilities play the blame game. I have documents from my bank that shows the ID numbers and the changes that were made. The Credit Union has helped me out by supplying me with the documentation for my complaint to you as well as the FTC. Please help me.

Robin Irvine

King County

DNRP

Washington State