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  • FIRST POST
    • Mamamany
    • By Mamamany 14th Dec 16, 4:40 PM
    • 3Posts
    • 1Thanks
    Mamamany
    Cancellation fee on life insurance
    • #1
    • 14th Dec 16, 4:40 PM
    Cancellation fee on life insurance 14th Dec 16 at 4:40 PM
    A few months ago I looked into getting myself life insurance, I'm a single mum of 5 and would like them covered if anything happened to me. So the first company gave me a reasonable quote then asked for some further medical information so I called the drs then called back and left a message.
    A couple days later someone phoned said all was well went through the final details and took my bank details. The very next day the first guy called back and it turned out it was some other company that called and took my details so I cancelled it with bank and called company, sent out letter etc.
    Fast forward to now and I just had a phone call saying they've never received my cancellation so I'm due them £527!! Basically I've come here to see if anyone can help me find a way around this, I've tried explaining everything to them but they won't budge and are sending it to a debt collection agency so I can pay it up!!
    Tia for any replies.
Page 1
    • kingstreet
    • By kingstreet 14th Dec 16, 4:42 PM
    • 32,081 Posts
    • 17,170 Thanks
    kingstreet
    • #2
    • 14th Dec 16, 4:42 PM
    • #2
    • 14th Dec 16, 4:42 PM
    Life assurance doesn't have cancellation fees and you have a statutory 30 day cancellation period.

    You need to be more specific about who you applied to and if a middleman was involved as this sounds like commission clawback.

    "Some other company?"

    Was this part of the advice process for a mortgage?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Mamamany
    • By Mamamany 14th Dec 16, 4:53 PM
    • 3 Posts
    • 1 Thanks
    Mamamany
    • #3
    • 14th Dec 16, 4:53 PM
    • #3
    • 14th Dec 16, 4:53 PM
    It was compare warehouse that called me, it was just an independent process, just so my kids have a financial fall back 'just in case'
    • csgohan4
    • By csgohan4 14th Dec 16, 5:10 PM
    • 3,885 Posts
    • 2,411 Thanks
    csgohan4
    • #4
    • 14th Dec 16, 5:10 PM
    • #4
    • 14th Dec 16, 5:10 PM
    a bit high for the cancellation fee?, what are the terms and conditions regarding this? Generally you cancel and your cover stops but if you went through a broker there might be conditions
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • dunstonh
    • By dunstonh 14th Dec 16, 5:56 PM
    • 89,851 Posts
    • 55,457 Thanks
    dunstonh
    • #5
    • 14th Dec 16, 5:56 PM
    • #5
    • 14th Dec 16, 5:56 PM
    You need to look at the fee agreement you signed with this company.

    This is not a cancellation charge as such. It is a recovery charge for you creating the work but then pulling out and the fee, which would have been payable from the commission, no longer coming through to cover it.

    If there is a fee agreement with a clawback clause, then these are normally enforceable in court. Without a signed agreement, then these are normally not enforceable.
    • Nearlyold
    • By Nearlyold 14th Dec 16, 6:52 PM
    • 972 Posts
    • 798 Thanks
    Nearlyold
    • #6
    • 14th Dec 16, 6:52 PM
    • #6
    • 14th Dec 16, 6:52 PM
    Which is the Company asking for the fee is it the first company that gave you the original "reasonable quote" or is it the second company the one that took your bank details that you refer to as "some other company". You need to be a lot clearer please. Did you take out any life cover with either company at all and receive any policy docs. Is compare warehouse the first or second company?
    • Mamamany
    • By Mamamany 14th Dec 16, 6:59 PM
    • 3 Posts
    • 1 Thanks
    Mamamany
    • #7
    • 14th Dec 16, 6:59 PM
    • #7
    • 14th Dec 16, 6:59 PM
    I never signed anything it was all done over the phone and I cancelled it a few days later. I was using a company called life search and then a company called compare warehouse called me, he never said the company just that he was calling about my quote and he had all my details.
    It wasn't until life search called next day I realised my error so I cancelled the first policy by phone and sent a letter as requested, they claim I never did this and are charging me the £526 for not cancelling within the 30 day cooling off period.
    • dunstonh
    • By dunstonh 14th Dec 16, 9:02 PM
    • 89,851 Posts
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    dunstonh
    • #8
    • 14th Dec 16, 9:02 PM
    • #8
    • 14th Dec 16, 9:02 PM
    If it was all done within 7 days, then they cannot enforce the fee.
    • usefulmale
    • By usefulmale 15th Dec 16, 8:05 AM
    • 2,312 Posts
    • 4,273 Thanks
    usefulmale
    • #9
    • 15th Dec 16, 8:05 AM
    • #9
    • 15th Dec 16, 8:05 AM
    Don't fret about the debt collection agency either. They have no powers. If you claim the debt is in dispute they must pass it back to the original company, who would then have to take you to court and win.
    Originally Posted by MSE Forum Team
    We’ve had to remove your signature because what you wrote was true and sensible and there's no room for that here.
    • Hj13
    • By Hj13 24th Aug 17, 12:01 AM
    • 4 Posts
    • 0 Thanks
    Hj13
    Can I ask if you resolved this in the end?
    Compare Warehouse are trying to charge me now and I am interested in how you got on???
    • dunstonh
    • By dunstonh 24th Aug 17, 10:29 AM
    • 89,851 Posts
    • 55,457 Thanks
    dunstonh
    Can I ask if you resolved this in the end?
    Compare Warehouse are trying to charge me now and I am interested in how you got on???
    Originally posted by Hj13
    Maybe it would help if you gave your scenario.

    Cancellation fees are allowed on insurance. Even within the cancellation period.
    • kingstreet
    • By kingstreet 24th Aug 17, 11:37 AM
    • 32,081 Posts
    • 17,170 Thanks
    kingstreet
    Maybe it would help if you gave your scenario.

    Cancellation fees are allowed on insurance. Even within the cancellation period.
    Originally posted by dunstonh
    There's a thread above this one, you've already answered it.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • GGW.LEWIS
    • By GGW.LEWIS 3rd Oct 17, 12:04 AM
    • 1 Posts
    • 0 Thanks
    GGW.LEWIS
    Compare warehouse = biggest con ever!
    By the looks of the postings on this thread and my own experience with these Compare Warehouse crooks, they are making a living out of this. I just wonder how big this is in terms of a cash cow for Compare Warehouse?

    It happened to me too. Months ago I thought of taking a combined Life Insurance and Income Protection Insurance in case I got ill or something and my other half would be protected.

    I looked around the Internet and Compare Warehouse came up pretty much like others, for example Money Supermarket and the like. Believe me, you are never never going even to suspect that take or don't take a deal, you are going to be charged a cancellation fee. I have used Money Supermarket in the past and I never got charged anything if I cancelled.

    Well, Compare Warehouse got me a Royal London Life Insurance, which did not include the Income Protection I wanted. I ended up cancelling because it did not fit the purpose I wanted it for.

    So Compare Warehouse is threatening me with a Cancellation Fee bill of £1060.00 or in other words, they want me to foot the bill for the fee Royal London is getting back from Compare Warehouse.

    You just can't make it up, really!... I never heard of any fees until after I cancelled. Because if I knew in clear terms that a cancellation fee could be on the table, I would have told Compare Warehouse to stick it up where the Sun doesn't shine, that's for sure!

    As far as I am concerned, I ain't paying that, it is well under dispute and I might send copies of this thread to the Financial Conduct Authorities and to the House of Commons Financial Affairs Committee!

    I won't stand up for this sort of crook practises. They are conning the consumers with this and that is plainly WRONG!
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