eCarinsurance hidden cancellation fees for cancelling within 14day period

matt_james27

Hi all,

I set up car insurance for a friend with ecarsinsurance on 31/07/2011
He then changed cars on 04/08/2011 so we informed them to update the policy, as there was a glitch on the online system preventing us from doing it ourselves.

Sent several emails and all phone calls kept stating they were too busy, it was on 06/08/2011 they finally replied.

By then we had already requested a cancellation online, who would want to stay with them after all this hassle?

Their terms of business (http://www.ecarinsurance.co.uk/terms.php#cancellation state that you cancel within 14days (cooling off period, you pay £75 cancellation charge and costs for any time lapsed since cover began)

Nearly 2 months later received no cheque refund, so emailed them today and they said the following:

I can advise that there is no refund due for this policy.

The necessary calculations have now been completed, which has resulted in an additional premium being due. Please find below the breakdown of how this has been calculated:

Time On Cover £27.28

+ £75 Cancellation Fee

+ £40 Direct Debit Set up Fee

+ £164.30 Commission

= £306.58

Policyholder Paid £199.04 - £306.58

= £107.54 Additional Premium

Please be advised that collection of this additional premium may be required, and if so, you shall be contacted by our Payments Team.
- Hide quoted text -

Yours sincerely,
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Help Desk

Firstly where on earth did the £40 direct debit fee come from not mentioned in terms of business anywhere

Secondly the commission? what commission? The policy was bought via confused.com but why is my friend having to pay the commission? :mad:

Please advise what I can do to get a refund and avoid these additional costs


Many thanks

mikey72

That's an impressive amount.

Make an official complaint, then follow it up to the FOS if they don't agree to a maximum of a £50 fee, and pro rata refund.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm

matt_james27

yep went straight onto phone and called the financial ombudsman to complain

any idea why they can charge commission?
and is it commission as in the money the pay confused.com for an individual signing up through their comparison site?

also their online system is awful, it wouldn't show the policy as cancelled, kept saying a part-change has not been finalised, attempted it dozens of times then gave up, they replied to my email later saying it had been cancelled

terrydactil

See here https://forums.moneysavingexpert.com/discussion/3816357