Jump to content

 

BankFodder BankFodder


Loafmanuk

Insurance company refuse full refund. Breach of DSR's?

style="text-align:center;"> Please note that this topic has not had any new posts for the last 1488 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

Hi all, it's been a while since I last posted here, but have a bit of a question that I hope someone may be able to help with.

 

My girlfriend has recently renewed her car insurance, although her existing insurance does not lapse until the 1st of Feb (a few days a way yet). The insurance she has just payed for is not due to become active until the old insurance lapses. Basically she has paid for her renewal early.

 

Unfortunately her car has developed a major fault, so she now wants to cancel the policy before it actually begins.

 

She had phoned her insurance company on the 25th and dealt with someone on the phone who took payment on her debit card.

 

She has since phoned to cancel and has been told that she will not get a full refund. They want to charge a fee for legal cover, a fee for making a change to the policy etc etc.

 

I suggested to her that she politely end the call and to say she would look into it and get back in touch with them, which she then did.

 

I was of the understanding that under Distance Selling Regulations, any purchase made on the internet or over the phone that was not a "custom" order must be refunded in full within a 14 cooling off period. I would understand if the policy had already come into force, but it hasn't.

 

Does anyone have any views, experience or advice surrounding such an issue?

 

Many thanks in advance, Loaf..

Edited by Loafmanuk
typo's

Share this post


Link to post
Share on other sites

not 100% sure an insurance company is held with DSR as it's a service not a good, you will be getting a full refund minus the broker's fees and any extra's you agreed to purchase at the time, all of the above would have been clearly stated to the policy holder at the point of payment

Share this post


Link to post
Share on other sites
Hi all, it's been a while since I last posted here, but have a bit of a question that I hope someone may be able to help with.

 

My girlfriend has recently renewed her car insurance, although her existing insurance does not lapse until the 1st of Feb (a few days a way yet). The insurance she has just payed for is not due to become active until the old insurance lapses. Basically she has paid for her renewal early.

 

Unfortunately her car has developed a major fault, so she now wants to cancel the policy before it actually begins.

 

She had phoned her insurance company on the 25th and dealt with someone on the phone who took payment on her debit card.

 

She has since phoned to cancel and has been told that she will not get a full refund. They want to charge a fee for legal cover, a fee for making a change to the policy etc etc.

 

I suggested to her that she politely end the call and to say she would look into it and get back in touch with them, which she then did.

 

I was of the understanding that under Distance Selling Regulations, any purchase made on the internet or over the phone that was not a "custom" order must be refunded in full within a 14 cooling off period. I would understand if the policy had already come into force, but it hasn't.

 

Does anyone have any views, experience or advice surrounding such an issue?

 

Many thanks in advance, Loaf..

 

They can charge an admin fee to cover cost of cancellation per the policy contract she has, but cannot charge for cover that has not started.

 

Suggest a complaint that she is being treated unfairly and will take it to the FOS if necessary. They should not really charge fees amounting to more than the costs they incurred and would have to justify themselves.

 

She could ask her bank to do a charge back and see whether they will or not. But as she authorised the original debit card payment, they might not.


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites

The situation is now dealt with by the Consumer Contracts Regulations http://www.legislation.gov.uk/uksi/2013/3134/contents/made

 

Unfortunately, if you look at section 6 of the regulations you will find the insurance contracts are excluded.

 

I have to say that I was surprised to find this but it seems that the insurers may be correct and that she does not have the right to cancel.

 

I have to say that I find this extremely unfair but as it is laid down in the statute, I doubt whether there is much that can be done about it. The best you might be able to do is to ask them to suspend the commencement of the insurance – for which I suppose they will want some administration fee.

 

What is the name of the insurer? Maybe you can let us know what happens.


Share this post


Link to post
Share on other sites
The situation is now dealt with by the Consumer Contracts Regulations http://www.legislation.gov.uk/uksi/2013/3134/contents/made

 

Unfortunately, if you look at section 6 of the regulations you will find the insurance contracts are excluded.

 

I have to say that I was surprised to find this but it seems that the insurers may be correct and that she does not have the right to cancel.

 

I have to say that I find this extremely unfair but as it is laid down in the statute, I doubt whether there is much that can be done about it. The best you might be able to do is to ask them to suspend the commencement of the insurance – for which I suppose they will want some administration fee.

 

What is the name of the insurer? Maybe you can let us know what happens.

 

From what i can remember, when this legislation was being consulted on, they considered that Insurers already had ICOBS which addresses this a bit and also there was some concern about people who only needed short term Insurances using cooling off periods for free Insurance. Plus obviously once Insurance starts, you could have a third party liability created which the Insurers only find out about at a later date.


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites

Hi guys, thanks ever so much for the replies.

 

She rang again and got through to a different operator, thinking she would be paying a cancellation fee of some sort, but this different operator said as the policy hadn't started yet they would give her a full refund!

 

So it would seem it depends on who you speak to..

 

Thanks again guys! All the best.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...