Need help - disputing insurance auto-renewal / cancellation fee

Breixo

Hi folks, I'm after some help I'm afraid

When our car insurance needed renewing, we went with a new much cheaper provider.

Now it turns out that the previous car insurers automatically renewed our insurance. They're now demanding a cancellation fee of £70, and when I wrote to ask why we owed it, they threatened to charge us another £25 for costs incurred in collecting the debt.

The thing is that I'm sure we never said we wanted automatic renewal. It seems to me that it's contravening the OFT's guidelines on continuous payment authorities, because they say "Consumer consent to a CPA should not be assumed - such as through the use of opt-out provisions. The consumer must positively indicate their informed consent to the use of a CPA. For example, where a consumer is offered a free trial, after which payments will be taken, the consumer should be asked to agree to the actual liability before any payments are taken. Failure to do so may result in the contract being considered unenforceable, with the consumer being entitled to a refund of all payments made. ... All relevant terms of the CPA agreement should be set out clearly and in plain, intelligible language, and brought prominently to the consumer's attention. They should not just be contained in 'terms and conditions'. "

How do I make the insurers deal with my dispute about the fee?

I've already written to the insurer , and as I said, got back a bog standard email saying I owed them £70 and potentially another £25 if I didn't pay up.

Are there certain legal terms I need to include? Do I need to write to a particular department?

I don't mind paying if its legal (well, I guess I do mind ) but when I started looking at the OFT website I don't think we ever agreed to them automatically renewing the isnurance.

Please help as this is really stressing me out.

soontobemrsg

Did you get your renewal quote from them?

Usually the letters say something along the lines of we will automatically renew unless you contact us to cancel.

happy_bunny_2

You need to check last years letters/policy to see what they say about auto renewal.

They must have sent letters before renewing the policy? They normally say that if you don't contact them they will renew it for your convenience and collect payment from the card details they have.

Did you pay monthly or in one go (did you sign a credit agreement, usually do if paying monthly). matters as if its a credit agreement they can file a default on your credit report if you do not pay I think.

darren_clarke

they put auto renewal in there terms and conditions, i had this last year, i took out a policy and when it came to renew, i went online and got it cheaper, with the same company then the insurance company sent a renewal, at double, what my new price was, they hope people dont change and that is how they make money

Thrifty_Pixie

as has been said above - you need to check YOUR paperwork from them, not the OFT.

my renewal quote this year came with a line on it stating that it was MY responsibility to contact them if i was going elsewhere, so i did and asked for their cancellation of my policy in writing. they are relying on people's laziness to stay with them.