Cancellation/Refund T&Cs for Breakdown Cover

Tuesday_Tenor

I’m also posting this on the Consumer Rights Board, and will cross-link to whichever Board provides the quickest/most helpful responses.

Context: I’ve recently had to give up driving (sight problems) and yesterday sold my car. Today I’ve tried to sort out refunds for the remaining insurance (8 months) and vehicle breakdown cover (10 months). Insurance sorted fine. Well, a hefty cancellation fee, but thisa was this expected, and a cheque for the remainder is on its way.

Problem: The organisation providing Breakdown Cover is insisting that I take the refund in the form of credit with their organisation, which I can spend on other products or services from them. However, there is a limited number of such items, none of which are relevant for me! [More details below]. I am of course familiar with the concept of the ‘credit note’ which can make sense in the context of a shop/business where there is a wide range of clothes/shoes/households goods/books/repair services/whatever to choose from and you could purchase something in the future/for future use, even if you didn’t actually need it now. The main question is: Is there any consumer legislation which would deem a ‘credit note’ for such a specialised/limited range of products, as below, unreasonable or unfair? Anyone know whether this is a common practice (e.g. with AA or RAC cancellations)? The organisation will be holding over £100 of money that I am very unlikely to be able to redeem. I would prefer a hefty cancellation fee and to get SOME of my money back! But they say that’s not possible.

Details: My vehicle breakdown cover is with the Environmental Transport Association https://www.eta.co.uk/
Have been with then since shortly after they started in 1990. They use a wide range of garages for recovery, rather than their own staff. Have received excellent service over many years.
However, the ETA cancellation policy is to refund you in the form of credit which you can spend on other products and services from them. This is clear in the printed T&Cs; I’d just not had reason to read the small print since I joined 20 years ago!
The problem is that the limited range of products is as follows:
Car insurance – I will never need
Cycle insurance – I will never need
Vehicle breakdown service – This is what I am cancelling and will never need
House insurance – I do not need as I am happy with existing cover from another company. At renewal time I can investigate changing, but the ETA cover may or may not meet my needs as well as my existing provider.
Travel insurance – Again I do not need. Am happy with the European cover on an existing annual insurance from another company. While I may travel further afield another year, who is to say that the ETA product would meet my particular needs better than another company?
These limited options are a very different scenario from getting a ‘credit note’ from a business providing a wide range and/or ‘everyday’ products.

So, do I have to lose the £100 of unused breakdown cover? Any comments or suggestions?

Tuesday_Tenor

Thread now running on another forum:
https://forums.moneysavingexpert.com/discussion/4404575