Cancellations fees. Where do I Stand????

[Ealexander]

Hi Guys

My husband recently sold his van and so he cancelled his insurance policy. Two week later we recieve a letter asking for £125 cancellation fee.

When we asked where it states this fee, we were told its in the policy manual and that we were made aware via an automated message when you phone up to arrange the insurance, and by continuing to take out the policy you agree to the terms. My husband does not recall this message and I have asked where we signed to agree to this fee. They have said that they don't me writen proof as it was verbal.

I don't mind paying a fee for early cancellation but when it is over a third of the total policy amount it seem unfair. Where do we stand ? Do we have to pay it??? Advice please!!!!!

Ealexander

[Darkangelsdelite]

Under FSA regulations, all insurers have to lay out any terms and conditions, including cancellation fees within you policy documents. Its usually either in the policy booklet towards the back, or its on the motor insurance schedule.
The insurer is right in the sense that you get a 14 day cooling off period in which to cancel the policy if you're not happy with the policy for ANY reason. As you haven't cancelled, they can assume that you've read your docs and are happy to comply (including the canx charge)
What i would suggest you do is call the company back and ask them for a copy of your policy docs so you can read through them carefully and will have a better idea where you stand.
Which company is it by the way, maybe one of the other experts on here has more dealings with them and can give you better advice.


DA.

[Ealexander]

Hi DA,

Thanks for the info. The company is Commercial Vehicle Direct, I spoke to a lady the other day and complained that we have never had to pay a fee before and that it was excessive. As we hold another policy with them they have agreed to half the fee to £56. I then agreed to pay £1 per week as that is all that we can afford. But my husband isn't happy he doesn't want to pay anything. Will love to know if there is a way of not paying this fee.

Cheers
Ealexander

[Darkangelsdelite]

Hi Ealexander,

I think them halving the fee as a gesture of goodwill is still about the best you can expect, the company you are with is not one that I'm personally familiar with so i don't know off hand what their charge scale is or how they calculate it.
My personal opinion is that you are probably still liable for the cancellation fee as it would appear to be a term of your contract but i sincerely wish you luck in fighting this and hope it all works out. Anything else i can do, feel free to ask.


DA