Devitt cancellation charge

Mike12421

Hello again,


I thought I would pop on here to have a moan as I don't think there is a great deal I can do....unless someone can tell me otherwise.


I took out motorcycle insurance with Devitt nine months ago and paid in full at a cost of £264. I sold the bike yesterday and promptly called them up to cancel the policy.


I was told that there was no one to take my call, instead I had to leave my details and someone would call me back, no one did.


I called back this morning and was again told that someone would call me back. It was dragging on and no one had called me so I sent an e-mail. A short time later someone called me. I explained that I wanted to cancel. The woman asked when I wanted it cancelling from. I said yesterday however was told that she couldn't "back date it". A little more typing on the keyboard and I was told that I owed a £50 cancellation fee and that as the policy was nine months old I was not entitled to any sort of partial refund. She then said a letter would be sent out and I would have 14 days to pay. I said in that case I don't want to cancel and I will let the policy run. She said, she had already cancelled it. She then reminded me that I had 14 days to pay and promptly hung up! I think she was having a bad day.


Now I appreciate that I need to inform them of any changes such as me selling the bike and that I can't insure something I no longer own. Also I am aware that checks on the bike would show that an insurance policy was still in effect, however I find it difficult to accept that after paying in full, making no claims, being a careful rider and never having so much as a parking ticket, I'm now being charged £50 for doing the right thing!


Anyway, rant over.

vaio

Stick a complaint in, remind them that the FOS view on cancellation is that you should broadly get a pro-rata refund (so about 25%) less an admin fee of £50.

You won't get any actual refund but will probably not have to pay anything either

Mike12421

Thanks for the advice.

I today received my cancellation letter from Devitt stating that I owe a £50 cancellation charge.

The letter states that if I cancel at anytime over 8 months then I am not entitled to any refund.

I just wanted to check with everyone here if I had any grounds for a complaint or not.

My insurance lasted for 8 months and two days. I paid in full at the beginning of the policy and never made any claim.

I find it extremely unfair that a)No partial refund is given, and b)I now have to pay another £50 for doing the right thing and informing them of the cancellation.

Thanks in advance.

vaio

as post #2, if you aren't happy then put a complaint in and refer to FOS if still unhappy

Their view is that, broadly, you should get a pro-rata refund but have to pay an admin fee of c£50

Have a read of http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm

Mike12421

Hello, I have just submitted my complaint to Devitt and await their reply.


In the mean time however, do I still need to pay the £50 as in the letter I received it stated that if payment is not made within 14 days legal proceedings can be taken.


I was of the belief that once a complaint has been submitted the charge is suspended pending the outcome of their investigation.


Regards,
Mike.

rs65

Mike12421 wrote: »

I was of the belief that once a complaint has been submitted the charge is suspended pending the outcome of their investigation.

I've never heard of that.

The £50 cancellation charge is payable anyway. Your dispute is about the lack of refund.

vaio

I too have the idea that enforcement proceedings should be suspended pending the outcome of the complaint/dispute (but have no evidence to back that up).

As the refund would cancel out the cancellation charge then it makes sense to maintain the status quo pending a decision.

Mike12421

Hi everyone, I thought I would give you an update.

I submitted my original complaint via email to Devitt (no one available to speak to me on the phone) on the 20/03/2014, however to date I haven't had so much as a confirmation of receipt of my complaint. Anyway, as the 14 day limit to pay the cancellation charge is only two days away, I thought I best pay it as I didn't want a negative mark on my credit file. I also submitted a further complaint via their onsite contact form. However again I have had no confirmation.

The financial ombudsman states that they have eight weeks to reply. Looks like I have a wait on my hands.

Regards,
Mike.

Mike12421

Well, Devitt have just called, they are going to refund the £50 cancellation charge.

Thank you for everyone's advice.