New Insurance policy and wanting to cancel in the cooling off period

AimeesMum_2

I bought car insurance last night which was an upfront payment of £73 then £36 a month. Since then I have found another quote that is only £269 a year - a saving of £200.

I called to cancel the policy as I am in the 2 week cooling off period but am being told by the company that I will only get £23 back as they have a £50 admin charge...can they do this? Is there anything I can do?

neilmcl

Yes they can do this and £50 tends to be the going rate. Any more then you should consider contacting the financial ombudsman.

Quentin

AimeesMum wrote: »

I bought car insurance last night which was an upfront payment of £73 then £36 a month. Since then I have found another quote that is only £269 a year - a saving of £200.

I called to cancel the policy as I am in the 2 week cooling off period but am being told by the company that I will only get £23 back as they have a £50 admin charge...can they do this? Is there anything I can do?

As long as this charge is mentioned in the ts + cs, then there is nothing you can do.

However if the ts + cs don't mention any admin charge, and refer to a "full refund" or similar if you cancel un the cooling off period, then you have grounds to refuse to pay, and to demand your money back!

Read the ts + cs!!

fluffnutter

Cancel and pay the charge. You're still saving yourself £150.

bcl999

Would the DSR have covered this transaction if OP had still been in the right timescale for it or would he/she have had to pay the £50 regardless?

fluffnutter

bcl999 wrote: »

Would the DSR have covered this transaction if OP had still been in the right timescale for it or would he/she have had to pay the £50 regardless?

I think there are different laws for financial products, i.e. they're not covered by the DSR. They are covered by a law of course, but it may well allow an admin fee if the policy is cancelled.

wealdroam

bcl999 wrote: »

Would the DSR have covered this transaction if OP had still been in the right timescale for it or would he/she have had to pay the £50 regardless?

From the OFT's Guide to the DSRs...

Contracts to which the DSRs do not apply (Regulation 5)
2.11 The DSRs do not apply to the following contracts:

• Contracts relating to financial services to consumers. However, these services are likely to be subject to the information giving and cancellation provisions contained in the Financial Services (Distance Marketing) Regulations 2004 (SI: 2095 2004) (FSDMR) and, where relevant, the Consumer Credit Act 1974 (CCA).

shaun_from_Africa

fluffnutter wrote: »

I think there are different laws for financial products, i.e. they're not covered by the DSR. They are covered by a law of course, but it may well allow an admin fee if the policy is cancelled.

The law that covers financial products is the:
"Financial Services (Distance marketing) Regulations 2004"
and they do indeed allow the company concerned to charge a pro rata amount for a service that has already started, and also to make a charge for the cost incurred in setting up the service.

Quentin

shaun_from_Africa wrote: »

The law that covers financial products is the:
"Financial Services (Distance marketing) Regulations 2004"
and they do indeed allow the company concerned to charge a pro rata amount for a service that has already started, and also to make a charge for the cost incurred in setting up the service.

They maybe "allowed", but they cannot "spring" this charge on a customer, which is why the OP should check to ensure it is mentioned in the policy ts + cs.