Admin costs for cancelled insurance

ArchieB_2

Lisyloo -"I work in IT and I would charge you a 5 figure sum for the above change (obviously that would be split across many policies)."

You said you would charge a five figure sum for the change fullstop - I just used your figure! You can't start adding other things in because your figure doesn't work.

Lisyloo -"If you don't renew you don't need to phone up or write in (hence no-one to process that)..."

That isn't correct - the majority of Direct providers operate an auto renewal which has to be cancelled by the policyholder writing or calling.

I don't support the argument that the costs are illegal as I have never said that cancellation costs that don't refelct the transactional cost are illegal - please don't misquote me.

I do aggree that people should challenge the costs if they wish, firstly by negotiation with their insurer and if unsuccessful and they have sufficient time and resource, legally challenge them. This is if they believe they are illegal.

Personally I have had charges applied that I thought were UNFAIR, I asked for a breakdown of the costs which they could/would not supply. I continued to complain and they simply cancelled my insurance without the fee as they could not justify the cost.

lisyloo

You said you would charge a five figure sum for the change fullstop - I just used your figure!

The figure is correct.

You can't start adding other things in because your figure doesn't work.

The figure is correct for the single item of IT changes i.e. pressing the button to cancel the policy.
It DOES NOT include all the other things previously listed i.e.

regulatory obligations
data protection act policies
privacy policies
staff to answer the phone and press the button
staff (or machines) to print out letter and put them in envelopes.

I don't support the argument that the costs are illegal as I have never said that cancellation costs that don't refelct the transactional cost are illegal - please don't misquote me.

I do aggree that people should challenge the costs if they wish, firstly by negotiation with their insurer and if unsuccessful and they have sufficient time and resource, legally challenge them. This is if they believe they are illegal.

Personally I have had charges applied that I thought were UNFAIR, I asked for a breakdown of the costs which they could/would not supply. I continued to complain and they simply cancelled my insurance without the fee as they could not justify the cost.

I am genuinely confused here (I don't think I misquoted you I just questioned what you said).

Please can you confirm your understanding of the situation.
Are unfair fees illegal?

So are you saying that you think you won on moral grounds and not legal grounds?

Not trying to misquote just trying to get to the bottom of it as you have me confused.

Just to add I think sometimes companies may well refund you because it's less expensive than arguing with you.
If you can put forward and articulate case which makes it clear you know your rights and aren't going to be easily fobbed off then it helps immensely.
I have won 6 cases in the past.
Sometimes I fell it was totally deserving, other times I think they just gave up on the grounds of cost.
For example I argued over £295 exit fees safe in the knowledge that it costs the lender more than this if I take the caseto the ombudsman.
Therefore I do think it's worth complaining, however not ALL cases are decided on merit, some are simply paid off on the grounds of cost.