Car insurance co. takes money from man's bank account after cancellation

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PHOENIX -- A Valley man says his car insurance company took money from his bank account when they weren't supposed to so he contacted 3 On Your Side for some help.

Taking the money from his bank account led to an even bigger mess. That mess meant his bank account was in the "red," leaving him with $374 in overdraft fees.

Matt Blair works for a school district in Phoenix and admits he doesn't make a ton of money. So, when it came to his car insurance, he decided to shop around for a better deal.

"I thought it would be the way to save a couple of bucks," Blair said.

Blair said he did find something a little cheaper and, as a result, he wanted to cancel out his current insurance policy he had with a company called Commerce West.

But even though he canceled, he says Commerce West withdrew his $105 premium anyway.

"The money that was taken out of my account for Commerce West should not have been withdrawn because I canceled their policy," Blair said.

As a result of that automatic withdrawl, Blair's bank account went into the red, causing him rack up three different insufficient fund fees totaling $374.

Blair says he tried to resolve the matter but got nowhere.

"I was on the phone for hours and I got transferred here and transferred there and I got the run-around," he said.

3 On Your Side got involved and they sent us a letter saying, "Because the (cancellation) request was received on same day of the cancellation date, it was too late to stop the (bank) draft from happening."

They go on to say that they require seven days' notice from drivers like Blair to stop any funds from being withdrawn and that they clearly state that in paperwork signed by him.

Blair says it's an expensive lesson and still appreciates 3 On Your Side getting involved.

Again, Commerce West really didn't drop the ball here because the automatic draft was already in motion when the cancellation was made so it was too late.

Since Commerce West didn't feel like they anything wrong, they didn't feel they should be responsible for reimbursing Blair for those overdraft fees.