Cancellation fee for not renewing car insurance?

tsb

My father's car insurance is due for renewal on 5th April. On 9th March the brokers rung him to remind him of the renewal and to tell him the premium had increased significantly with the company he was presently with so they had got other quotes, the cheapest of which was still £150 increase from last year. My father told them at this point he would be shopping around himself for quotes and to put the details of their quotes in the post to him.

Their paperwork never arrived. This week he obainted a quote himself direct from a company and has taken out a policy with them to start from 5th April.

As a courtesy call, he rung the brokers to tell them he wouldn't be renewing with them (I'd like to name the company but probably shouldn't). They told him the policy had already been renewed (payable on monthy direct debit, like the current policy) and therefore he would be cancelling the policy and incurring cancellation fees (quoted at about £50). My father questioned how it had been renewed without his permission, why no paperwork had been sent etc.

Today my father has received a bill from them for £100.71 for - they claim, cancellation fee, admin fees and payment for part of the policy already used ?????? He has rung them to complain and got nowhere with them, as far as they are concerned the bill stands.

Now my father is in his late seventies, with a heart-complaint and very limited income. I am concerned about the effect this is having on his health and would like to take up the fight of this unjustified bill on his behalf. Please could anyone give me advise on how to tackle this.

Thanks for reading - sorry if its abit long-winded!

[Deleted User]

I think I would be asking for/following their complaints procedure. If this fails take it to the ombudsman.

mandi

The new policy cannot come into effect until the old one runs out on the 5th April .

Make sure he contacts his bank ASAP to cancel the DD after the last payment is made and confirms the cancellation in writing to both the insurer & the bank

dizzie

Quote: (I'd like to name the company but probably shouldn't)

Yes you should...or at least I would.

Insurance firms are using all sorts of tactics to get your money these days. Some contracts sign you up to automatic renewal unless you instruct them otherwise at the outset. They put the onus on you to telephone them and say you do not want the policy automatically renewed. And yes, some of them charge cancellation fees. It's a bit like the Jet2.con ....looks a good price...until you see the small print and then you understand how they make their money.

BUT, your father's insurance does not renew until the 5th April and his new policy starts from that date. AND, your father has told them prior to this date that he does not wish to renew with them. So what is the problem? Okay, I could understand if he had cancelled his March direct debit to them, but not if he is just deciding not to renew from April 5th. I previously had a policy with Sheila's Wheels and the cancellation charge was part of their policy, but this refers to cancelling a policy at some point during its year long contract which is ENTIRELY different to just not wishing to renew. So what the heck is this "part of payment already used?" on your father's insurance?

If the information you have given is correct, I can't see that they have a leg to stand on...and I'd certainly be telling them where to get off! My suggestion is to double check all the facts, and if you have,then speak to Citizen's Advice in the first instance. If there are no contractual grounds on which they can claim this money, I'd also be contacting Trading Standards and complaining about their tactics to extort money from vulnerable people.

PS 1. Don't let them frighten your father into not daring to cancel his April DD with them for the start of the new policy year.

2. Remember that most of the people who are put in the firing line on the telephones are just telesales people who get paid peanuts, have to quote policy (even if it has been misapplied) and have to take all the stick. They are not allowed to think, make judgements or decisions and just have to recite what they've been told. You or your father need to speak to someone more senior...ask for a manager to call you and if they give you the standard b*llsh*t about that not being possible tell them that you think they have misapplied policy and there will not only be stalemate on this issue until you get a proper discussion and explanation, but there will be a heck of a lot of adverse publicity....through naming and shaming....and the internet is a perfect place for that!

tsb

Thanks for some quick replies.

After the 'courtesy call' he made the other day, he promptly cancelled the direct debit at the bank. The last payment for the current policy had been taken at the beginning of March anyway.

The company have said that they take out the new policy up to 30 days before the old one runs out ... hence the cancellation fee.

Sounds like they are just making it up as they go along to me. I'm thinking the FSA would be interested in this practice?

tsb

dizzie wrote: »

Quote: (I'd like to name the company but probably shouldn't)

Yes you should...or at least I would.

Ok, I will .... its Swinton Insurance

mum2one

def contact the FSA, in the nicest of ways. your dads one of the lucky ones that he got out, but how many other people have just took this as read, and kept an policy they don't want. x

raskazz

tsb wrote: »

My father's car insurance is due for renewal on 5th April. On 9th March the brokers rung him to remind him of the renewal and to tell him the premium had increased significantly with the company he was presently with so they had got other quotes, the cheapest of which was still £150 increase from last year. My father told them at this point he would be shopping around himself for quotes and to put the details of their quotes in the post to him.

Their paperwork never arrived. This week he obainted a quote himself direct from a company and has taken out a policy with them to start from 5th April.

As a courtesy call, he rung the brokers to tell them he wouldn't be renewing with them (I'd like to name the company but probably shouldn't). They told him the policy had already been renewed (payable on monthy direct debit, like the current policy) and therefore he would be cancelling the policy and incurring cancellation fees (quoted at about £50). My father questioned how it had been renewed without his permission, why no paperwork had been sent etc.

Today my father has received a bill from them for £100.71 for - they claim, cancellation fee, admin fees and payment for part of the policy already used ?????? He has rung them to complain and got nowhere with them, as far as they are concerned the bill stands.

Now my father is in his late seventies, with a heart-complaint and very limited income. I am concerned about the effect this is having on his health and would like to take up the fight of this unjustified bill on his behalf. Please could anyone give me advise on how to tackle this.

Thanks for reading - sorry if its abit long-winded!

Tell the current broker to shove it where the sun don't shine - it is not a cancellation, it is a lapse and thus a cancellation charge is totally unenforceable, let alone unjustified.

raskazz

tsb wrote: »

Ok, I will .... its Swinton Insurance

Bunch of shysters who have (allegedly) resorted to selling policies at rates below net to survive. Avoid like the proverbial plague.

dizzie

Good on you for naming and shaming....and what utter claptrap that they renew a policy 30 days before the renewal date. Sounds like the "rolling" contracts that are applied to businesses (I know that being a business owner and having to have hawk eyes when it comes to signing contracts) but I have never seen this applied to consumer contracts and did not think this was allowed.

And thank you for naming Swindler's insurance company...oops...spelling error. Just think how many people reading this may avoid falling into the same trap with this company...

magpiecottage

Either fax a complaint to 0161 236 7102 or e-mail to julie.daniels@swinton.co.uk

A fax can be done from a PC with a fax modem for the cost of the call and shows when it was received. It needs to be in your Dad's name, though.

It should also include the words "I telephoned you on 30 March to complain and you must therefore refer it to your Complaints Procedure unless you can resolve it to my satisfaction by close of business on 31 March.

Should you fail to issue a final response that is to my satisfaction or fail to issue it by 25 May 2011, I shall take the matter to the Financial Ombudsman Service.

I shall expect confirmation that you have cancelled the policy and all charges and appropriate redress for the distress and inconvenience you have caused me."

Contacting the FSA may result in general action against them but not resolve your specific problem.