Car insurance cancellation fees + box disconnection fee

Dlaczegoznak

Hi,

I've recently had to sell my car for economic reasons. I called my insurance company today to cancel. They told me that I was due a £140 refund, but that I wouldn't be seeing any of it because I owed £47 cancellation fee and £100 to disconnect the box they fitted in my car to track my driving, although when I asked further I was told that they weren't going to actually disconnect, but it was a fee in lieu for the original connection, and that I have to pay now because I haven't seen out the policy. I said I wanted to make a complaint, but I was told that I cannot do so because I agreed to it when I took the policy.

I have seen a few posts about excessive cancellation fees, that they may be illegal, but I am not clear as to what I can do about it. Also I would like to know the legal stand of the 'disconnection' fee. I've looked on gov.uk and they state that fees have to be proportional to the work done, and if they are calling it a disconnection fee and not actually doing anything surely that can't be legal?

Any advise would be much appreciated.

dunstonh

I said I wanted to make a complaint, but I was told that I cannot do so because I agreed to it when I took the policy.

They cant stop you from complaining. However, you dont appear to have much of a reason to complain.

I have seen a few posts about excessive cancellation fees, that they may be illegal

Really? where?
They are not illegal. Whoever said that is telling you BS. The FOS have also ruled on cases like this and has published examples of £50 being acceptable to them.

Also I would like to know the legal stand of the 'disconnection' fee. I've looked on gov.uk and they state that fees have to be proportional to the work done, and if they are calling it a disconnection fee and not actually doing anything surely that can't be legal?

Not only the work done but the hardware as well. They could argue that to call someone out to your home to remove the box is too expensive and its cheaper to leave it there and put up with the loss of hardware as the premiums paid cover that cost. However, when you cancel, they don't cover the cost so they have to charge you an extra fee.

So, how would you counter that argument? I dont know how much the boxes cost or the cost to fit them. However, they would be allowed to recover those costs if the policy did not go the full term.