Distance Selling Cancellation Rights

e-bygum

I bought car insurance online for which I paid the premium plus £5 set up charge. The payment was a lump sum by debit card, therefore no credit. I subsequently wrote to the supplier to cancel. This notice of cancellation was made within the 7 day period and before the start date of the policy.
Is anyone able to give authoritative confirmation or otherwise of the following two points?

1. The supplier states that they will refund the sum paid less a charge of £49 administration fee to cover the cost of setting up the policy. Their Terms of Business make it clear that this charge is only applicable on cancellation.
My understanding is that a supplier may not charge for cancellation and as such the £49 charge is an unfair contract term and the refund should the total paid.

2. The supplier states that the refund will be dispatched to me once they have received the return of premium from the insurance company.
My understanding is that they must return the money as soon as possible and in any case within 30 days commencing on the date of the notice of cancellation.

Any comments/advice greatfully received.

Thanks.

unholyangel

These are copied directly from the DSRs and relate to contracts which are not covered by the DSRs

Excepted contracts

5.—(1) The following are excepted contracts, namely any contract—
(c)relating to financial services, a non-exhaustive list of which is contained in Schedule 2;

SCHEDULE 2
Non-exhaustive list of financial services

2. Insurance and reinsurance operations.

shaun_from_Africa

The Distance selling regulations don't apply to financial contracts, only to contracts for goods and services, so insurance policies aren't covered.

The distance selling of financial services is covered by "The Financial Services (Distance Marketing) Regulations", and this act states that businesses are entitled to make a deduction from the refund to cover any costs incurred by the business.
The timescale for processing the refund is the same as the DSR's (maximum of 30 days).

This link gives a rough guide.
http://www.netlawman.co.uk/info/distance-marketing-consumer-financial-services.php

Where the consumer cancels a contract you must refund any sum paid by or on behalf of the consumer, less any charge made under the contract, as soon as possible and within 30 days from the cancellation date. The 30 days will run from the day of cancellation or, if the supplier can prove it to be later, the day the supplier receives the notice of cancellation.

Flyboy152

shaun_from_Africa wrote: »

The Distance selling regulations don't apply to financial contracts, only to contracts for goods and services, so insurance policies aren't covered.

The distance selling of financial services is covered by "The Financial Services (Distance Marketing) Regulations", and this act states that businesses are entitled to make a deduction from the refund to cover any costs incurred by the business.
The timescale for processing the refund is the same as the DSR's (maximum of 30 days).

This link gives a rough guide.
http://www.netlawman.co.uk/info/distance-marketing-consumer-financial-services.php

But they have to be actual provable losses, not loss of commission either.

vicmorrow

Flyboy152 wrote: »

But they have to be actual provable losses, not loss of commission either.

DSR do not apply...what question are you answering?

Flyboy152

vicmorrow wrote: »

DSR do not apply...what question are you answering?

:huh:

I never mentioned that the DSRs apply. I was referring to Shaun From Africa's remark regarding to deductions from refunds.