Cancellation - with complications

[Sockydog]

I cancelled an insurance policy with Tesco in April, the renewal date was October, because the monthly payments cover 10, not 12 months I had paid more than the actual cover costs between October and April by £185, and yet they still wrote and asked for an additional £90 which would pay the policy in full up to renewal

I have checked the agreement and it says I would have to pay an fee for cancellation, it says nothing about paying the full policy and there have been no claims on the policy.

In addition, the CCA they sent me had an monthly amount on which differed from the amount they took by DD (they took more).

After their first demand I sent them a letter, a spreadsheet showing the amounts paid, plus a copy of the CCA asking them to explain the difference, they sent me a second demand so I sent them a second letter, a copy of the first and another copy of the CCA, they have ignored this and set Moorcroft on me.

I am thinking I'll go straight to the FSA now, it has been longer then the required 8 weeks but would like your comments first please.

[LemonTwist]

I'm not familiar with Tesco's billing procedure, but I'd assume the difference could be explained by the monthly interest rate which is charged if you pay your policy monthly.

Whether you have to pay a cancellation charge depends on the specific reason for cancelling the policy - eg if you had to stop driving due to medical reasons (eg the DVLA told you it's no longer safe for you to carry on driving) or if you received bad customer service, then they would probably be willing to write off the fee.

Most insurance policies are designed to run for 12 months (regardless of whether you pay monthly or annually) so it's best to avoid cancelling mid-term if possible as it can cause problems, although I recognise that in some instances people have no choice but to do so.

[Sockydog]

Thanks for the reply.

I did the calculations including the interest added to pay by installments, using the CCA (which turns out to show the wrong figures anyway)

I just want to make sure there's nothing vital I've missed before I start shouting long and hard.

It was my sons insurance and cancelled purely because he has been priced off the road, sold the car, no point in continuing to pay for the insurance!!!

And it was insured in my sons name, not mine, and all the letters have been sent by him.

Can see NO reason whatsoever to pay the full years policy

Unless anyone knows different............?

Also interested to know if anyone has an opinion on the CCA being incorrect?

[vusys1]

Hi

you son would be paying over 10 months as Tesco take 20% (2 months) as a deposit for motor policys.

I would write into their Customer relations dept and call to log a complaint,in regards to the amounts on the CCA, if they are taken more than agreed then they are in the wrong, did your son have any additonal cover? Breakdown?legal cover as this could make up the extra amount