HES boiler cover cancellation fee

dunc99

Hello there

I had a boiler breakdown policy with Home Energy Services (HES) costing £5.95/month for 12 months. Shortly before renewal, they sent me a letter to say my new cover would cost £15.40/month (a 159% hike in price). I cancelled my direct debit immediately after the last payment of £5.95 was taken and bought another policy with the AA at a similar price to my original policy. HES now claim i must pay them £15.40 as i didn't cancel the policy. As far as I'm concerned, i signed up for the 12 month deal and paid throughout. I never agreed to a new rolling contract and feel cancelling my direct debit was a pretty clear indication of the end of our relationship.

My question therefore is, do HES have a legal basis to charge me £15.40 in these circumstances? It's clearly effectively a cancellation fee dressed up as giving me cover beyond the date i asked for or agreed to. On principle, i really don't want to pay it but do they have any legal recourse here?

Do these companies really think they can behave like this and ever get repeat business? All this behaviour does is guarantee, i wont consider them for a policy next year-idiotic behaviour in a very competitive market.

Many thanks for any advice you can offer

paddyandstumpy

When you signed up last year, although it was £X price for 12 months, do you know if it was either a rolling contract (like Sky or Virgin would be), or if they signed you up to an auto renewal? You'll need to check your paperwork very carefully.

Also, it's worth seeing what their cancellation procedure is, just cancelling your d/d isn't considered sufficient to notify a company of cancellation. It's not too much to email in a one liner advising of cancellation (or not renewing, if it's a renewable contract). If you haven't followed their cancellation procedure they are within their rights to ask you to pay more, as you haven't given due notice (if that's a term of the contract).

You could show them the new cover and advise that you had cover elsewhere, the charge is likely to be for the period between the end of the 12 months and when they cancelled. If you show them the alt cover, they may be able to back date the cancellation?

How were you sold the policy? Were you given a key facts? How to cancel is a prerequisite on a key facts document.

There's a few things to think about and a few avenues to explore. Hope this helps.