How i have been fluxed!

Everything is fine until you say You would like to leave,

On 25/05 we have got a new ERS policy over the phone through Adrian Flux and paid 64.40.

They charge non-refundable fee of £100 and my policy cost was £329.36 making this total 429. + 16% making total premium credit finance of £490.

On 26/08 I have asked them to cancel the policy due to car being sold after exactly 3 months.

To this point we have already paid 64.40 + 47.24 + 47.24 + 47.24 making total of: 206.12

(last DD payment has been taken after policy was cancelled)

We have received a message on 04/09 saying that we still owe £96.43.

I immediately called them and asked for explanation how this is possible as we paid already much more, on 14/09

AF answered:

we deducted our commission

and a £25 administration fee, leaving a refund of £154.05

This was set against an outstanding balance of 250.48 with premium credit leaving £96.43 to pay.

I asked them for statement of my account as I do not understand and was not aware of any commission to be paid apart from the initial £100, and I was expecting only contractual cancellation fee of £25 as we paid proportionally much more than we have used.

When I spoke with insurance company they confirmed that they issued a pro-rata refund, which is based on the number of days that your policy was in force.

On 18/09 I have explained that this is not in line with what information I have been given when signing a contract and those fees were not explained to me when I was offered insurance, and I would like to make a formal complaint about this and that I’m willing to pay contractual cancellation fee of £25 on top on what I have already paid.

On 19/09 after their working hours I have received an email that they are adding additional £35 to the balance for debt recovery agency and now the total balance payable is £131.4,

Rang them immediately to get explanation just to be told that they are closed now.

Nowhere in Your Documents You are able to actually find out what is the full cost of policy, and what are the real costs.

They did not explain to me how much refund was given by the insurance company and dealt in worst possible outcome with premium Credit by cancelling the credit agreement ( early repayment and refund would be my preffered way to avoid cancellation fees ! )

Cancellation cost of £25 is a fiction and new fees like “commission” shows up.

I would like to make a formal complaint on the grounds above, can anyone confirm the best way?

There are plenty better brokers there... Yes, they are not even insurers, just brokers trying to drain You as much as possible, when they find out that You want to cancel policy You took through them.

Be warned.

Read the terms you signed up to when buying the policy. Then make a formal complaint in writing to Adrian Flux head office about anything they are doing that is different to the policy terms.

Normally on cancellation, if anything is owed, then they can issue a full breakdown calculation and you can see how they arrived at the amount.

They have called me now and issue has been resolved.

Faith in humanity restored.

no cancellation fees nor DCA fees are lawful

they are all unlawful

don't get spoofed

Hi dx, can you confirm that cancellation fees are not lawful?

I am about to cancel my insurance at month 6 because I sold the car and I thought that I would have to pay something to terminate the contract early, similarly to when you change details of something.

Cancellation fees are lawful and accepted by the FOS. I don't think anyone has gone to court and won in regard to cancellation fees.

Read your policy in regard to cancellation terms. It might not be pro rata, there could be a percentage of premium payable based on months policy has run. Then on top there is a cancellation fee.

If you are buying another car, get a change of car quote and compare with new policy quotes.

Cancellation fees can be applied within a contract.

Your thinking of third party admin charges from the likes of a dca which have no contract to add them

things in T&C's can be deemed unlawful

just like bank charges and PPI

they were in T&C's but look at what happened!!

cancellation fees are not lawful!!

they are a PENALTY and the FCA have clearly gone down on record as stating such.

whatever the FOS deem on individual cases is neither here nor there

no no-one has ever gone to court and won them back

but neither have any insurance companies gone to court and won them either.

dx

So British gas are acting unlawfully when they advertise their latest offer on telly and stating their is a cancellation fee if you leave early?

The ads would be pulled instantly

Along with talk talk, plus net, BT EON, Scottish power and hundreds of other company's.

utilities companies would you argue with them they are a priority service

all the rest have and do get challenged

simply look in the legal successes forum on the number of court claims by DCA's for say phone contracts that they've lost or discontinued

whereby the balance they are after is solely cancellation charges & monthly contracted costs till it end of contract

nuff said

You Say against dca. I'm in agreement with you on that front.

Re read what I wrote