Barclays home insurance - cancellation fee?

Pickchee

I had a home insurance policy for contents with Barclays. I’ve recently moved home so I called to cancel my old policy (which has been running since March 06) and they’ve said that since I’m cancelling mid-term I owe them a fee of almost £40!! Now I’ve moved on a very tight budget and this just wasn’t part of the plan. I’ve always been a good payer, never claimed so what’s this fee all about?

I was mid move when I called with no cards on me or anything so the lady said she would cancel the policy and I needed to call back with the payment. I’ve cancelled my DD so they cant take any more payments but I’m wondering, if I leave this payment for a while til I’ve saved up, will it affect my credit rating and the like?

Does anyone know why I even have to pay it, I find it very unfair? I’m tempted to not pay it at all, but things like this don’t half worry me!!

Amanda

lisyloo

The fee is for the additional admin involved in cancelling your policy mid term.
This covers the cost of call centers, admin assistants and IT systems.

Why didn't you just transfer any credit over to a new policy?
I expect that if your new policy had been with the same company then they wouldn't have charged the fee or would have waived it.

If you don't pay it then there will be consequences which can last a long time on your credit report.

You could dispute the amount to try to get it reduced, but admin fees are legal and you need to bear in mind the cost of setting up call centers and IT systems, so it won't go away unless you are very lucky.