Hi,

Am having a problem with Budget Home Insurance and would appreciate some help.

My home insurance with Budget expired on the 9th April.

A few weeks before I got a letter from them saying that "for my convenience" they would automatically renew the policy and take payment on the 12th April.

The letter was sitting on my desk and I meant to call them to inform them that I did not want to renew but just forgot about it.

I always like to compare renewal prices to see if I can get a better deal.

on the 9th April I got an email thanking me for renewing my policy.

I rang them on the 10th April and told them I did not want to renew.

They informed me that it was too late and that the policy had already been renewed and payment would be taken on the 12th.

Only when I told them that I was within the 14 day cooling off period did they agree to cancel my policy

but said that there would be a payment due for the cover I had.

As this was just 1 day I thought this would be negligible.

They have now sent me a letter asking for a £35.00 cancellation fee and as I have not paid this are now sending to a debt collector

. Are they in their right to do this?

I did not renew this policy (although auto renewal was probably buried in their terms and conditions).

I don't mind paying for 1 day cover, but considering I cancelled the day after renewal

can they charge this cancellation fee?

Even though I was within the 14 day cooling off period?

Also as they never took payment on the 12th was the policy valid?

Should I fight this or just pay up?

It is not really about the money but just the principle.

It makes me angry that I have to pay a cancellation fee for a policy I did not ask for or want.

The letter does not talk about payment for the period covered but for a cancellation fee.

Thanks for your help

get it back by bank dd guarantee

there is NO automatic renewal on home ins like motor

they can state all the T&C's they like

they are NOT law.

as for the DCA

NO DCA are bailiffs

they have NO SUCH LEGAL POWERS

dx

[quote=Matesalka;4211192

They have now sent me a letter asking for a £35.00 cancellation fee and as I have not paid this are now sending to a debt collector

The debt collector has no powers at all

check insurance not trashed your credit file deal in writing with insurance

Budget would have told you in the documents at inception of the policy that auto renewal would be used. The renewal documents would have confirmed the same.

Just send them a copy of the alternative policy schedule, with a covering letter, advising them the policy should be cancelled from renewal, as you have gone elsewhere. Advise them that if they wish you to consider a cancellation fee, can they register a complaint and issue a final response, as you wish to take this further with the FOS. Because of the FOS fee they would be charged, they would probably just cancel from renewal and not bother asking for the cancellation fee.