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  • FIRST POST
    • ent_moot
    • By ent_moot 7th Oct 17, 10:52 AM
    • 45Posts
    • 8Thanks
    ent_moot
    Ripped off by LV & Essential Insurance
    • #1
    • 7th Oct 17, 10:52 AM
    Ripped off by LV & Essential Insurance 7th Oct 17 at 10:52 AM
    Hello,

    My parents had life and home insurance with LV who, I might add, have provided a poor service in every respect. After a little research, they discovered that they could make some big savings by switching to HSBC.

    They called LV up and found out about cancellation costs to be sure they wouldn't be overly stung, and went ahead with the cancellation.

    A month later they are now being harassed over email and telephone by Essential Insurance, presumably some sort of middleman, for a cancellation fee of £195!

    This seems ridiculously. Can they be held to this? Is there anyone we can complain to about this?

    Many thanks,
Page 1
    • MH1927
    • By MH1927 7th Oct 17, 10:57 AM
    • 11 Posts
    • 4 Thanks
    MH1927
    • #2
    • 7th Oct 17, 10:57 AM
    • #2
    • 7th Oct 17, 10:57 AM
    Essential Insurance are a Broker?

    Did your parents use them and then they placed the business with LV?

    It might be commision claw back? You need to find exactly what your parents signed up for.
    • dunstonh
    • By dunstonh 7th Oct 17, 11:07 AM
    • 89,880 Posts
    • 56,556 Thanks
    dunstonh
    • #3
    • 7th Oct 17, 11:07 AM
    • #3
    • 7th Oct 17, 11:07 AM
    This seems ridiculously
    No it doesnt.

    If you buy via a broker and the broker has a fee offset (their work is paid for by a fee but that fee is offset against a commission) then when you cancel, the commission is clawed back. Many brokers now have a clause in their terms to recover the charge from the person directly.

    Is there anyone we can complain to about this?
    What has the firm done wrong that you would want to complain about?

    Remember the complaints process is about wrongdoing. it is not about trying to get out of contractual terms that are valid and fair.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Quentin
    • By Quentin 7th Oct 17, 11:37 AM
    • 33,500 Posts
    • 17,375 Thanks
    Quentin
    • #4
    • 7th Oct 17, 11:37 AM
    • #4
    • 7th Oct 17, 11:37 AM
    Hello,

    My parents had life and home insurance with LV who, I might add, have provided a poor service in every respect. After a little research, they discovered that they could make some big savings by switching to HSBC.

    They called LV up and found out about cancellation costs to be sure they wouldn't be overly stung, and went ahead with the cancellation.

    A month later they are now being harassed over email and telephone by Essential Insurance, presumably some sort of middleman, for a cancellation fee of £195!

    This seems ridiculously. Can they be held to this? Is there anyone we can complain to about this?

    Many thanks,
    Originally posted by ent_moot
    They can be held to it only if they agreed the TS & CS which the company are relying on to issue the charge.

    They need to first exhaust the insurers complaints procedure first ( or have their complaints ignored for 8 weeks) then they can escalate to the FOS for their adjudication

    They should complain to both LV (over their poor service) and if there is no agreement in place regarding the clawback then complain to the agency over their harassment. Can they block their phone number to stop the calls?
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