Dispute with Post Office over car insurance

Pinkpig74

My mum is in dispute with the Post Office over her car insurance and needs a bit of help with her complaint.

Basically, when searching for a renewal quote she found a better deal and called the PO to inform them that she didn't want to renew. They sent out the policy documents anyway and took full payment. The first issue is that she had previously paid by direct debit and had been quoted a monthly DD figure on her renewal documents, but they took the full amount. This has resulted in her going overdrawn.

She phoned them immediately to complain (followed up by a letter) and they have told her that she will have to pay for the insurance between the start of the policy until the date of 'cancellation' unless they can find the recording of call in which she states that she does not want to renew and they are now dragging their heels over repaying the remaining amount.

They say by law all of the policy documents have to be returned (and I think its contract law, but someone may be able to correct me), but the purchase of the policy was never agreed and therefore no contract was entered into can they still request that the documents be returned?

I know it seems like a really petty point to make but Mum has told them that as soon as they refund her money she will return their document. Who is in the right?

I think it's a sound complaint as she has bank statements to prove that she has paid an alternative insurance company 2 days before the renewal date and the phone records to prove that she made the call to the Post Office, but I'm not sure what rules/regulations they've actually breached by taking the payment without her authority.

In her initial complaint letter she has requested the full amount to be returned plus out of pocket expenses, interest paid on the overdraft and interest earned by the PO for the time they have her money.

I apologise if this sounds a bit complicated but would be grateful for anyone's expertise or advice in this area.

Thanks in advance!

iceicebaby

http://forums.moneysavingexpert.com/showthread.html?t=384523

Similar thread here,

Astaroth

I would drop the "interest earned by the post office" bit... for one it is impossible to quantify and secondly most motor insurers are making a loss at the moment so it may well be a negative figure

sar_h

Hiya - I posted the other thread, so I know what you're going through!

When I was on the phone to them about it, I asked them what if I incurred a bank charge as a result of their mistake, and they said they would compensate for any charges your bank made.

Also, remember they will never offer to compensate you for anything, you have to ask for it.

Pinkpig74

Thanks to everyone for getting back to me. Sar_h, I read your post and should have realised that this would have happened to someone else. Good luck with your complaint!

I think she is going to hold out using the 'I can't cancel a policy I've never bought, therefore I'm not obliged to return anything.' Although I think if it were me I'd just return it and get my refund!