Sainsburys Bank Charged Cancellation Fee

paulo1888

Hi

Just a quick question

I had booked a holiday over the internet for self travel

I booked flights, hotel and travel insurance all from different companies. I had to cancel this 4 days later due to work issues.

I received a refund no problem for the flights (qatar airways),hotel (booking,com) and insurance (axa). The travel money I cancelled through Sainburys Bank. I was charged a £10 fee for cancelling the travel money. I am thinking fair enough, as it does state on the t&c's that a £10 fee will be charged. But what I am wondering is, does this not go against the new Consumer Contract legislation which states that "any fee should not exceed the cost to the company for the payment method." Hopefully someone can clarify this. Many Thanks

bris

£10 is pretty reasonable considering banks charge £12 for missed payments etc and insurance companies charge a minimum £25 for cancellations. It's all about admin costs for the time you have wasted, so £10 is fair compared to others.

paulo1888

bris wrote: »

£10 is pretty reasonable considering banks charge £12 for missed payments etc and insurance companies charge a minimum £25 for cancellations. It's all about admin costs for the time you have wasted, so £10 is fair compared to others.

Yea, it does seem reasonable, but I'm just wondering if it's lawful. The distant selling regulations allow a 14 cooling off period to protect the consumer, so if that was the case any company could just add on a fee to get around the law, thus making a mockery of the cooling off period. I know that companies must by law refund in full including the cost of outbound postage, but I,m not sure of foreign exchange.

jonesMUFCforever

paulo1888 wrote: »

Yea, it does seem reasonable, but I'm just wondering if it's lawful. The distant selling regulations allow a 14 cooling off period to protect the consumer, so if that was the case any company could just add on a fee to get around the law, thus making a mockery of the cooling off period. I know that companies must by law refund in full including the cost of outbound postage, but I,m not sure of foreign exchange.

Assuming for a moment you had not cancelled - you got the money in your hand - work out the difference between the buying rate and the sell rate - I think you would have lost more than £10.

paulo1888

jonesMUFCforever wrote: »

Assuming for a moment you had not cancelled - you got the money in your hand - work out the difference between the buying rate and the sell rate - I think you would have lost more than £10.

"Yea, it does seem reasonable, but I'm just wondering if it's lawful"

JonesMUFC you've just answered my question.... NOT .

unholyangel

Distance selling regulations were replaced by consumer contract regulations. Neither of which apply to financial services.

Also, the part you're referring to in your first post from the CCRs relates to payment method - not cancellation fees. For example charging a inflated price for wanting to use a credit card.

paulo1888

Thanks for that angel :A

jonesMUFCforever

paulo1888 wrote: »

"Yea, it does seem reasonable, but I'm just wondering if it's lawful"

JonesMUFC you've just answered my question.... NOT .

You are wrong!
It is lawful - you just ignored it whilst ordering.

wealdroam

paulo1888 wrote: »

Hi

Just a quick question

I had booked a holiday over the internet for self travel

I booked flights, hotel and travel insurance all from different companies. I had to cancel this 4 days later due to work issues.

I received a refund no problem for the flights (qatar airways),hotel (booking,com) and insurance (axa). The travel money I cancelled through Sainburys Bank. I was charged a £10 fee for cancelling the travel money. I am thinking fair enough, as it does state on the t&c's that a £10 fee will be charged. But what I am wondering is, does this not go against the new Consumer Contract legislation which states that "any fee should not exceed the cost to the company for the payment method." Hopefully someone can clarify this. Many Thanks

As well as the points already raised, I would suggest that Regulation 6 of The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 makes it clear that your travel money transaction is not covered by those regulations:

Limits of application: general

6.—(1) These Regulations do not apply to a contract, to the extent that it is—

(b) for services of a banking, credit, insurance, personal pension, investment or payment nature;

OlliesDad

jonesMUFCforever wrote: »

You are wrong!
It is lawful - you just ignored it whilst ordering.

To be fair, the OP is not wrong. They never said it was illegal, they simply asked the question (and in fact they said they accept that it is in the terms, so no issue with their reading).