cancellation charges issue

new_to_the_game

Hi everybody,

Just after a little help regarding an homes insurance policy I cancelled under the advice of the insurance company representative back in Jan. I recently changed over my insurance company due to the hike in the new premium and their refusal to keep the costs close to the same as before. I was then cold called regarding my home insurance (contents and buildings) and informed that they could beat my current insurer by approx £18 per month, at which point I was interested (being tight with money at the moment like probably most people) and would look into seeing what my current provider could do to keep me with them. Unfortunatly they couldnt come any where near it so I asked them about cancelling my policy and what it would cost. The company informed me that because my payment had just been made and if I then cancelled it there and then I would have to pay an additional £36, otherwise, if I was to wait until the next payment was due on the 26th of the month and contact them the day before, then there would be NO cancellation fee to be paid.

As I followed their representatives advice, I contacted them the day before the payment was due and that was the end of that (or so I thought). This was in January of this year, and since then I have had BCW contact me demanding £80+ on behalf of the insurance company (to whom I will name and shame later on if necassary). I have explained to them the same advice given to me by the insurance company and refused to deal with them as this is now in dispute. I have now received 2 letters from them formally notifying me of their intentions to persue the funds, I have responded with a formal rejection and countercalim to which I will persue them for nuisence calls and distress should they continue.

Now then sorry but to my point, I can't for the life in me remember wether or not it was on this site or the CAG site (both excellent for responses) where there is a letter template regarding persistant telephone harrasment and holding the company acting on behalf of another company (in the form af associasion), liable for harrasment and distress due to persistant calls for demands of monies for a 3rd party, in this case BCW acting for the insurance company.

I have sent a letter advising BCW NOT to contact me by telephone and if they wish to continue with their actions to do so in writing, however this does not seem to be in their interest as they are still telephoning me and when I answer, there is nobody there. Yet when you ring the phone num,ber back it does not recieve incoming calls but makes you aware that you have contacted BCW.
So what is my next actions?

Regards as always

Chris

Any advice on the letters would be appreciated.

dunstonh

The bottom line is that you have a debt which you are not paying. They are allowed to reasonably contact you to arrange payment of your debt.

You could actually put a formal complaint in to the seller of the new insurance policy. They should not have told you to switch insurers mid policy term. You should have been told to wait until the renewal date and changed then. Switching mid term does often create a cancellation charge.

If you dispute the charge then you should make a formal complaint and if the complaint is rejected you should go to the FOS. There is no point becoming adversarial and creating more trouble. Whilst there is a formal complaints process in place they should not chase you for the debt.

new_to_the_game

Thanks dunstonh for your advice, and although you state I have a debt with them, my argument is that I took the advice from the insurance company I had the policy with in order NOT to have any charges, and they have now revoked the advice and obviously want reimbersing for the cancellation. This is my issue, and at the same time the third party who offered me the better insurance deal did say that they would cover any cancellation fees should there be any, So in either way I am covered for the cancellation costs should they stick. I still feel that the advice I was given by my insurance company was misguided and they should have really stated that there would be a cancellation fee regardless of when it was cancelled just that it may have been less of a fee at a certain time. So I will ask for clarification from the insurance company, and will settle the debt if it is within reason via the 3rd party as to their promise to pay it should it be necassary.

Regards
Chris.