Urgent help needed with cancelling insurance

joshreade

Hi all

On the 24th of February I signed up with Swinton car insurance, the total they wanted was £205 a month, which I thought was a little expensive but it came with a £350 cashback deal so I went for it.

However on the 11th of march I looked online and with my mum added to my policy, I found a quote for £130 a month, with admiral, which I went for. That night I rang up Swinton to cancel my policy, only for someone to tell me that only a local branch could cancel it, and the local branch was closed. So I rang up the following day to cancel


Today I got a letter from swinton saying I owed them £423.01

This was the breakdown on the letter.

Outstanding balance: £2062.51
Insurer refund: £1866.15
Direct Debit interest refund: £184.30
Installment charge refund: £0.00
Discount and/or cashback recovery: £360.95
Cancellation Charge: £50.00
Total Balance outstanding: £423.01

I phoned up the local office and told them I haven't had any cashback, as I was told I wouldnt get it until 3 months into the policy, so he took that off and told me I now owed £80ish ( I cant remember the exact figure)


Although im not happy about paying the cancellation fee, Im guessing I have no way out of it, I dont see why I should have to pay the extra £30 odd. Especially as I cancelled my policy 17 days in, and paid a deposit of £207. Surely the £207 I paid should cover these costs, when I asked him what the extra was for he mumbled something about arrangement fees and debit fees but I wasn't even sure what he was talking about.

Does anybody have any suggestions? apparently I have to pay within the next 7 days or more costs will be incurred, but I wont even have the money in 7 days

Sorry to rant on so much but im really annoyed about this

joshreade

Also another thing Ive just realized, I havnt yet signed and returned the credit agreement form, does this help me at all?

PNPSUKNET

not really as you had the cover, so accepted the t&c

mikey72

If you don't think the charge is fair, or if they can't explain it, speak to the FOS

as a rough guide, they usually state a pro rata refund, + a cancellation fee

https://forums.moneysavingexpert.com/discussion/comment/39938318#Comment_39938318

contact details

http://www.financial-ombudsman.org.uk/contact/index.html

forgotmyname

I think the credit agreement form is just a backup you already agreed on the phone or online when
taking out the policy. I was told with a works contract you agree the new terms if you continue to
work, Whether signed or not.

If that applies to credit agreements you would need to checkup, But it sounds like they are now
only charging you £50 cancellation fee?

Seems about right. They will have done paperwork to arrange a loan for you and credit checks etc so
no the 1st months payment will not usually cover the cancellation charges.

They used to want 2 months deposit and then 10 monthly payments to cover these charges.