Jump to content

 

BankFodder BankFodder


The Phantom

£50 fee to cancel insurance during cooling off period

Recommended Posts

I took out a new car insurance policy with Budget a few days ago as they came out cheapest through a comparison site.

 

Everything went well until today when they e-mailed me and said they checked the CUE database and found I didn't declare a claim from 2016.

 

I totally forgot about that due to the time that has passed and the incident never resulted in a claim.

I just reported it for accuracy.

Someone else rolled back into my vehicle at a hill and caused some minor damage to my front bumper and then simply drove off.

I reported it to my insurers , but no claim was ever made, I repaired it myself. And as such totally forgot about it.

 

This has now increased my premium by almost £10 per month retrospectively.

But even with that claim disclosed I found I can get it cheaper elsewhere now.

 

I thought I could just cancel it as I am still in the cooling off period, but they still want £50 admin fees from me, despite still being in the Cooling off period.

 

I have read they can charge 'a small fee' but who decides what a small fee is.

I don't think £50 is small.

Are there any legal guidelines on this ?

 

Share this post


Link to post
Share on other sites

You can ask them to provide a breakdown calculation of the £50 admin fee, saying you believe it more than cover their costs of administering the cancellation.

 

Cooling off period, just means you can cancel before the full contract terms come into force where you could be liable to pay more of the premium. So you still have the time on risk and reasonable admin fees that cover the admin costs if you cancel within cooling off period.


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

This new policy is not supposed to come into force until the 6th of August, I have so far only paid a deposit and set up my online service hub. 

My current policy is still running, so I have not used any time on the new policy yet

Share this post


Link to post
Share on other sites

Your problem is that you have in effect signed up to a loan to pay the premiums so you need to consider the law on that rather than just cancelling during the cooling off period.

i cant see that the insurers have a leg to stand on though so it boils down to how you paid them as a bank chargeback may be the simplest method

Share this post


Link to post
Share on other sites

I paid a £14 deposit with my visa debit card, that's all

But they have warned me that if I do cancel now they will charge me £50 admin fees, so they will probably debit my card with another £36 I suppose.

 

Share this post


Link to post
Share on other sites

then cancel the CPA.

 

 


..

Share this post


Link to post
Share on other sites

Have contacted HSBC and they said the payment was not marked on their system as a recurring payment authority, so they believe insurance can't debit the card again without my approval. Let's hope they are right

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...