Revolut Insurance SCAM! Beware!


#22

Hey @Original, good for you. (I am not ironic here.) But I am not convinced that your assumption about the legal situation is right. Terms of contracts are binding, even under EU consumer rights. There is no general rule that allows one party to drop out of a 1-year-contract. I am happy to change my opinion about this if we’ve got some proof for the case you are making. The email from simplesurance only says the contract was cancelled, but not why they did it. It might have been good will. Or compliance.


#23

@Original, may I ask how long you had the insurance? Because there is of course the 2 week revocation period during which everyone can cancel an insurance contract without stating the reason for the cancellation.

But imagine this: if selling a phone would be a reason to cancel the connected insurance, this would be an easy way to get rid of a long term insurance contract. A private sell is really easy to fake. Just fake sell the thing to a friend and get it back.


#24

Paid monthly. Makes no difference under our law. The only case where you can’t cancel is when there are any preferential terms, but you can buy out and cancel next day anyway.

Example would be 24 month phone contract when you pay 1 EUR for the phone at first and then monthly. All you do is pay the remaining sum for the phone and cancel. Same goes for car insurance like KASKO etc.


#25

I believe that if I see that written down somewhere. Sure, car insurance works like this everywhere, I believe. If you sell the car, no insurance needed anymore. Car insurances are mandatory. And you have to proof that you’ve sold it.

Most phone contracts I am aware of have two parts: the service plan and then the financing plan of the phone itself. It makes sense that you can end the lease with one payment of the remaining sum.

But aren’t service providers able to offer contracts with other terms? Not like Netflix, but like the premium membership of Revolut itself. This is also a yearly contract. When sining up, you agree to a 12 month term. And then you can choose how to pay for it. But that does not change the contract term.

Let’s have a look at a UK phone provider. Here is Three as an example. They have monthly contracts:

http://store.three.co.uk/view/searchTariff?priceplan=&deviceType=SIM_ONLY_MBB&greatForServices=&availableContractLength=1

And then they have 12 months contracts:

http://store.three.co.uk/view/searchTariff?priceplan=&deviceType=SIM_ONLY_MBB&greatForServices=&availableContractLength=12

Usually, the 12 months come with a benefit if the customer is willing to make this long term commitment. But both contracts are billed monthly. And now you say that this offer would not be possible under Lithuania’s laws? Or would this be the exception where the customer agreed to the benefit and the long term is binding then? That would mean long term contracts that are paid monthly and don’t have a benefit compared to monthly terms are not possible even if there isn’t a monthly term offer in the first place? – That would be surprising. But I don’t know Lithuanian consumer laws at all. But it is definitely not EU law.


#26

You seem confused. The law is the law and the law has to be respected if you do business in that country. Our law is pretty clear on that.

KASKO is not mandatory car insurance. I have mandatory car insurance, but i had also KASKO, but decided it is no longer worth paying for and canceled on the phone in 5 minutes.


#27

You’re right, Kasko is additional. I was wrong.

What I am asking is this: Is any company able to offer contracts with terms other than 1 month that are then paid monthly without offering also a similar service that has a 1 month term* in Lithuania?

I’m not saying that I know this better.

(* 1 month term would basically the same but without a discount.)


#28

Well you can look it up. I said that there are contracts 12/24/36 months when you get phones and other devices for say 1 EUR and pay rest of it monthly, but you can buy out of such contract and cancel.

Example:

You have just purchased iPhone X and paid 1 EUR, but you will pay 40 euros for the next 24 months. For some reason after 6 months you no longer want to be with that mobile provider, so you pay 18x40 for the phone and cancel, because you owe that company that phone still.

In this case with this insurance you don’t owe anything you didn’t get anything for free or reduced price or whatever upfront. There can’t be any debate regarding cancelation.


#29

Yes, I got that. I am not interested in the financing part here. The portion of a service contract that finances the device is like a consumer credit. This is where the buy out option is pretty common. It is also common that phone companies combine this: 24 month financing, but monthly data plan for example, and they offer this as one combined contract.

I’m interested in a situation like a service / product (only) contract. Private travel health insurance maybe, newspaper subscription, or a cellphone contract when I bring my own device.


#30

If you bring your own device there is no term here in Lithuania. It is cancel anytime. Things like mandatory car insurance are cancel anytime, you can switch insurance providers 5 times a year if you want.


#31

That is an interesting detail about national Lithuanian consumer law. Thank you for clarifying. So this cellphone provider (screenshot) can only offer the 12 months terms because he offers them with a discount. He could not offer only the plans in the second line here. I definitely would like to see this applied as a EU wide regulation.


#32

Depends on what country we are talking about. Local laws vary even in EU. The same law can be interpreted and implemented differently in different counties even inside the EU.


#33

Sure, that is why I am happy for clairifaction here. My last sentence of the former post was misleading. I changed that to be clearer about what I meant. It basically only allows long term contracts if they come with some sort of benefit for the commitment.


#34

Yes, if you were to chose that discounted price you would have to sign 12 month contract which you still can cancel, but you’d have to pay the remaining sum which would be a loss for you.


#35

It is an interesting idea to “bundle” a long term commitment with a mandatory benefit. That is the crucial detail here. No benefit, no long term contracts. (Or more correct, no obligations to pay for the equivalent of a long term contract.)


#36

It’s only logical if i don’t owe you anything you can’t force me to do something. This insurance doesn’t give me anything of value that would bind me.


#37

I looked it up for Spain.

  1. In Spain, an insurance is NOT a service.
  2. Insurance companies are NOT required to pay you back unused months if you cancel the insurance.
  3. There is nothing scummy about it.

#38

I think here are a lot of different arguments mixed up. Fist, it is about contract cancellation. And second it is about financial obligations resulting from a formerly agreed upon contract that is cancelled before term completion. (Like a buy out from a 12 month cellphone “bring your own device” plan.)

In the case of a buy out of one of those plans, the provider “does not provide you anything” after you bought yourself out. You still have to fulfill the financial obligations. You confirmed this. This is clear and totally makes sense.

We’ve also seen that there are indeed long term contracts (bring your own device) that are paid monthly. Like you said, they can be cancelled anytime, but financial obligations stand. You can’t get rid of what you owe the cellphone company by telling them: “Sorry, sold my phone, don’t need the contract anymore.” – Without phone, the company also would not be able to offer you this service.

So I am trying to understand why an insurance contract that was advertised as a 12 month “bring your own device” contract would be any different to a 12 month “bring your own device” cellphone plan. And so far, there was no straight answer to the question under which conditions a company is allowed to offer long term contracts and if this is specifically regulated in Lithuania. That is the detail I am interested in :wink:

The example with the posted screenshot: I wonder if it would be possible for this company to offer the “Raudonas” tariff, 12 months term, 20,5 € p.m. without also offering the same tariff, 1 months term, at a higher price.


#39

So then, you guys have no yearly contracts in Lithuania?

If I pay my monthly rent, I can just walk out in month 3 if I feel like it? I buy a car, with a 3 yr lease, and after 5 months I feel like its enough, and I just give back the car and pay nothing? :stuck_out_tongue:


#40

No, use some common sense. Car loan or nay other kind of loan is not the same thing (use brain power), but things like phone, internet subscriptions, insurance and similar can be canceled at any time. There are only two diferences:

    1. You received some kind of benefit, then in such case you will be able to cancel, but you will also have to pay remaining contract.
    1. You just pay monthly without any benefit, then you can cancel anytime.

This insurance doesn’t give you any benefit upfront, so i find it very hard to see any case here under OUR law.

What is so difficult to understand here?


#41

The difficulties might arise from the definition of what a benefit is. The benefit of every insurance is protection in case sth. happens. It is in the nature of insurances not to deliver something upfront. It is a true “benefit”, though, that goes away when the contract ends.

The benefit of a cellphone data plan is that you can use a certain amount of data. That is also not an upfront delivery of something, it is a service contract. It does not matter if one actually uses all the minutes or the data that is included in the tariff, the costs are still the same. So what would be the benefit of a 12 month “bring your own device” mobile phone contract that is paid for monthly that makes a difference here? Is it the discount? Or, is there any other kind of contract that you can think of besides insurances that can’t be sold as long term contracts? This is why I keep asking this question:

The example with the posted screenshot: I wonder if it would be possible for this company to offer the “Raudonas” tariff, 12 months term, 20,5 € p.m. without also offering the same tariff, 1 months term, at a higher price.