cancelling a contents insurance policy - charge?

halloweentown

Help please!

I set up a contents insurance policy and after reviewing it, im not happy.

I spoke to my local branch about cancelling the product within 14 day 'cooling off' period and they have stated that there is a 24 pound charge.

Ive had a look through the 'important points section' which refers to a charge when a payment is missed and another section which states:

once you have signed the credit agreement, you will have the right to withdraw without giving reason. the withdrawl period will begin on the day you receive a notice from us confirming the credit agreement has been made and will end 14 calendar days later. you will then need to pay any credit provided and any interest we may charge you. you must repay this within 30 days of the date on which you notify us of your intention to withdraw and find some other means to pay for the services we have provided.

This product was arranged via a call centre from a comparison site (which i REGRET). i cant remember if they told me there would be a charge but, is it normal within the cooling off period? ive not signed anything as of yet but they did take one payment from my account when i set the policy up...

Thanks in advance

wealdroam

The Financial Ombudsman Service has written on this...

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm

The whole page is worth reading, but in particular the example at the bottom of that page.

halloweentown

It seems like the company will be within their rights to charge then given that the policy is only a week or so old...?

arcon5

Them being able to charge a fee is only right imo. After all, had you been robbed during the week you had cover, you would have expected them to pay out.