Swinton Cancellstion fee

_Andy_

tonyenglish wrote: »

The hardware and software costs are negligible. As I said, a reasonable fee I would ahve accepted, but £50 seems very excessive given the time between me making the mistake, finding out about the mistake and cancelling thye product was so short. Surrely if you are entering into any product sold over the net then there should be a time period where the customer can verify that the product was specified correctly and rejected without such a hefty financial penalty!

I assume then you'd rather no cancellation fees but higher premiums?Or would you then be moaning about 'excessive' premiums?

Brize

For what it's worth, I think that the OP has been hard done by. Let's face it, charging £50 for cancelling within the cooling-off period is a punitive measure designed to deter people from exercising their statutory rights.

As an aside, we bought a commercial car insurance policy last year for around £3k. A few months later, we found a similar policy through another broker for £2k. To my surprise, the first broker cancelled the policy without protest or charge.

I'd be very wary of buying an insurance policy without using a broker.

lisyloo

charging £50 for cancelling within the cooling-off period is a punitive measure

Frankly I think that's GOOD.
If they can't be bothered to do basic research up front then that cost should NOT be passed onto other motorists.
Where would the morality be in that???

Brize

lisyloo wrote: »

Frankly I think that's GOOD.
If they can't be bothered to do basic research up front then that cost should NOT be passed onto other motorists.
Where would the morality be in that???

Insurance can be a complex product. The FSA recognise that people sometimes make mistakes, sometimes change their minds, and sometimes don't realise the limitations of their policy until they receive their documents. This is the reason for the statutory 14-day cooling-off period. Unfortunately, the FSA permit insurers to levy a charge for early cancellation, which defeats the object somewhat.

If you're asking me, as a consumer, whether I would like to benefit from cheaper premiums offered by companies who screw people like tonyenglish with early cancellation fees, then the answer is a resounding 'no'. We all make mistakes and oversights, and we all deserve to be treated fairly when we do.

zppp

Brize wrote: »

Unfortunately, the FSA permit insurers to levy a charge for early cancellation, which defeats the object somewhat.

Defeats the object of what? The OP wants to cancel, the fee is levied for cancellation. The cancellation costs money to the company, as well as setting the policy up, quite often having to write up CCAs where the premium is not paid up front and is in installments.

Brize wrote: »

If you're asking me, as a consumer, whether I would like to benefit from cheaper premiums offered by companies who screw people like tonyenglish with early cancellation fees, then the answer is a resounding 'no'. We all make mistakes and oversights, and we all deserve to be treated fairly when we do.

And sometimes when we make mistakes and oversights, that means from time to time we are penalised. Speeding, parking fines...need I go on? It is fair if all insurers are clear about this in the documentation for the policy, and that the amount is not above £50.

Brize

zppp wrote:

And sometimes when we make mistakes and oversights, that means from time to time we are penalised. Speeding, parking fines...need I go on?

You should go on at least until you stumble upon a valid analogy: speeding and parking illegally are usually calculated risks, not honest mistakes.

zppp wrote:

It is fair if all insurers are clear about this in the documentation for the policy, and that the amount is not above £50.

The FSA have previously made clear that salient information should not be relegated to small print, i.e. buried in the policy document. To my mind, a significant cancellation fee would only be fair and reasonable if it was made explicit prior to the conclusion of the contract.

zppp

Brize wrote: »

You should go on at least until you stumble upon a valid analogy: speeding and parking illegally are usually calculated risks, not honest mistakes.

Somebody going 1mph over a speed limit could be making an honest mistake? Or would they be doing that purposely or taking a calculated risk?
What if somebody is going 40 in a 30 zone, when they mistakenly missed a sign?

Equally, could you not be taking a calculated risk by not understanding the product you are purchasing prior to the conclusion of the sale?

Brize wrote: »

The FSA have previously made clear that salient information should not be relegated to small print, i.e. buried in the policy document. To my mind, a significant cancellation fee would only be fair and reasonable if it was made explicit prior to the conclusion of the contract.

Well if you're not happy with the FSA's stance, then you need to be speaking with the FSA to ask them to change their tack on the matter. However, taking the emotion out of this, people are giving their advice based on the current rules set down by the regulator.

Plus, such terms are not always confined to the small print, but are read out via scripts prior to the conclusion of the sale.

custardy

Brize wrote: »

You should go on at least until you stumble upon a valid analogy: speeding and parking illegally are usually calculated risks, not honest mistakes.



The FSA have previously made clear that salient information should not be relegated to small print, i.e. buried in the policy document. To my mind, a significant cancellation fee would only be fair and reasonable if it was made explicit prior to the conclusion of the contract.

lisyloo

If you're asking me, as a consumer, whether I would like to benefit from cheaper premiums offered by companies who screw people like tonyenglish with early cancellation fees, then the answer is a resounding 'no'.

Hi Brize,

You and tonyenglish are CONSUMERS
You don't get to dictate to companies how they structure their charges (unless you want to start you own company).
It's NOT your choice.
Get over it.

I don't like the way Ryanair do things, but I think I can live with my choice NOT to fly with them.
It's a FREE COUNTRY providing companies are acting within the law/guidelines.
If you don't like them then DON'T SHOP WITH THEM, but of course that does require a little research.

Brize

zppp wrote: »

Somebody going 1mph over a speed limit could be making an honest mistake? Or would they be doing that purposely or taking a calculated risk?
What if somebody is going 40 in a 30 zone, when they mistakenly missed a sign?

Yes, someone driving 1mph over the limit would be an honest mistake, hence the 10 per cent plus 2 rule. Missing a 30mph sign would indicate that the driver wasn't paying attention. This brings me back to my earlier point: if the cancellation fee was made explicit, the OP can have no cause for complaint; if not, I think he's been hard done by.