They refused to pay my claim - then charged me

Sue Harris, who lives in Cheadle, Manchester, has been frustrated at every turn in her attempts to claim on her mobile phone insurance.

"I had a monthly payment plan through T-Mobile, and paid £3.49 monthly (all through direct debit) for insurance. The insurance policy had been in place since June 2000, and I had not claimed before.

"I lost the phone in September, informed the police and the service provider with 24 hours, and filled in a claim form to the insurance provider.

"They rejected my claim saying I had "not taken enough care". This decision has never been given to me in writing, it was given as a phone message to a work colleague whilst I was out of the office. I have never received any statement telling me about their decision, despite the fact that I wrote to the insurance company.

"As I no longer had a mobile phone to cover with insurance, I cancelled the monthly payment. Home Care Insurance [the insurer behind the policy] then had the cheek to write to me to warn me that "my mobile phone handset may no longer be covered". Yet this is due to their refusal to honour an honest claim.

"I will therefore have to pay the value of the line rental to T-Mobile for the rest of the year - to the end of the one-year contract. I took out the insurance policy in good faith.

"Home Care Insurance are an absolute disgrace, and I do not see why I should continue to pay for insurance cover for an item I no longer have."

Fed up with her treatment by Home Care Insurance, her partner bought her a new phone with a rival network.

T-Mobile deducted the remainder of her contract payments, which ran to next April, from her bank account via direct debit.

The company says it wants to carry out a review of Ms Harris's case.