1st Central Finance Insurance Cahrge Ridiculous!

Hi,

I recently sold my car and it has been scrapped now. I proceeded to cancel my policy with 1st Central Finance Insurance. I was informed of the script they read out etc. and was told I would receive an email within 3 days regarding the fee.

Never received the email but I did receive a threatening letter. I called 1st Central where they claimed that the insurance had not been cancelled when clearly I had phoned up and had the script read to me regarding the legality of driving a car without motor insurance. This was passed on further until I received an email from Mr Jeffreys (the Head of Sales & Service) stating that the insurance was cancelled when I originally called and that if I needed any further assistance, then to please call.
I thought that was the end of it but NOOOO.

I then receive an email saying that I owe £570!!!!! They also go on to say that the money will be deducted in 7 days from my previous card! This is outrageous and more to the point it is a stupid amount of money.

I am well aware that there are cancellation fees and I am willing to pay the £50 cancellation fee that is states on the policy but no where did it say that I would have to pay £570.

Does anyone know how I would go about dealing with this? It has really upset me and I am very worried me. If anyone can help with advice I would be very grateful.

Kind Regards

Tom

Comments

  • rudekid48
    rudekid48 Posts: 2,382
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    Where you paying by instalments? Sounds as though what you have paid so far doesn't cover the cost of the time you've been on cover.


    Only way to be certain though is to ask them for a breakdown of the £570 and then take it from there.


    There may also be optional extras that you added that are non-refundable e.g. breakdown cover, legal expenses etc.
    All matter is merely energy condensed to a slow vibration, we are all one consciousness experiencing itself subjectively, there is no such thing as death, life is only a dream, and we are the imagination of ourselves.
  • Yes it was via installments.

    Its ridiculous though, your paying for a service which you have no choice of having as its illegal to drive without motor insurance yet you sell your car and still have to pay for a service you are not using! If it was a phone contract I can understand as you are paying for the physical phone and the contract covers this in the cost. I can understand the cancellation fee as its stated which is £50 but not the £570. Its a joke! I'm Fuming!
  • rudekid48
    rudekid48 Posts: 2,382
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    TomarHawk wrote: »
    Yes it was via installments.

    Its ridiculous though, your paying for a service which you have no choice of having as its illegal to drive without motor insurance yet you sell your car and still have to pay for a service you are not using! If it was a phone contract I can understand as you are paying for the physical phone and the contract covers this in the cost. I can understand the cancellation fee as its stated which is £50 but not the £570. Its a joke! I'm Fuming!



    Even though you are paying by instalments it does not mean that you are paying a 'monthly premium'. Insurance is an annual contract and so the company have basically given you a personal loan to pay for the annual premium. This means that the monthly payments do not reflect the amount of insurance that is 'used' each month.


    It's difficult for anyone here to comment on whether the £570 is good, bad or indifferent as it is all relative. If your annual premium was £5000 then it would seem a small amount but if your annual premium was £600 it would seem excessive.


    You really need to get a breakdown of the £570 from 1st Central so that you know how it has been calculated - if you then don't agree with the figures you can raise a formal complaint.
    All matter is merely energy condensed to a slow vibration, we are all one consciousness experiencing itself subjectively, there is no such thing as death, life is only a dream, and we are the imagination of ourselves.
  • Ok I will take your advice. It would seems that that amount is how much i would have to pay until the policy would have finished so in other words I had payed 6 months insurance cover but it seems they would want me to pay the rest of the cover for the last six months.
  • dacouch
    dacouch Posts: 21,637
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    Have you had a claim?
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