Hi, quick question. I have started a complaint procedure against Bennet's insurance, regarding an unjustifiable cancellation fee. They have sent me an invoice for the money, with threats of giving sending the "debt" on to a collection company.

My question is, can they do that whislt the issue is in dispute?

Thank for any replaies.

Dave

can you give us full details of what has happened

Hi Mooreda, yes. Basically - I modified my motorbike so rang Bennett's Ins Brokers to inform them. They told me that my present insurer: Equity Red Star wouldn't insure modified bikes, and I'd have to cancel my policy and take out a new one. I was also informed that there would be a £30 cancellation fee on old the old policy and that they woudn't refund anything for its remaining 4 months. I thought it was bit much and told them so, I felt I was being conned and after some discussion and realising I was going to have to pay this £30 cancellation fee, I told them to go ahead and cancel the policy, but I wouldn't be re- insuring with them.

I found another company to insure my bike with and when they were reading out the terms and conditions of the policy they mentioned that the insurer would be:.... Equity Red Star!

That more or less confirmed to me that Bennetts had tried to con me into taking out a new policy, or getting £30 out of me for cancellation by giving misleading and false information.

The following day a letter arrived demanding the £30 cancellation fee. It was at that point I decided to fight this and not just stump up. I had so obviously been conned by them.

I've written to them explaining that I'm contesting the charge and the reasons why, but I'm concerned that they will pass the "debt" to a collection company. I just need to know if they can do that while a fee is being investigated / disputed?

Dave

It is common for insurers to refund the remainder of the premium if they are the ones cancelling cover due to a mid term adjustment being unacceptable to them.

different brokers have different deals with insurers. Bennets may not be able to insure modified bikes through Equity Red star but other brokers might. However you should be getting a premium refund not a demand for more money. You didn't want to cancel the policy, the insurers did so the broker can't charge you! They have no legal basis for such a charge