Surely they can't do this???

barryjarcher

Used confused for the first time last week where budget came up as one of the cheapest (but not the cheapest). Wasn't that happy doing the cover over the net so decided to call them. The operator went through all details confirmed the amount of the quote twice and just before he took payment he told me he never noticed that the immboliser had been incorrectly entered, told me that i would have to speak to customer services AFTER he took my payment details.

Anyway gave him the details and he put me through to customer services where they told me that changing the immobiliser increased the price of the policy :mad:

I was so annoyed that I demanded it to be cancelled where he told me that there would be a £20 cancellation fee!

How can they do this? I did a bit of business Law a few years ago and although not an expert I'm sure that once the offer has been made and accepted it is binding, they can't then increase it. And on top of that they didn't check the details correctly so for their mistake they are asking me for a £20 cancellation fee - surely they have broken trading standards.

It was the way it happened as well that added insult as the operator that took payment didn't give me any indication that the quote may increase and he confirmed the price at least 2 times before taking payment, I genuinely feel like I've been conned.

Anyone know the actual law in these circumstances?

noh

There should be a 14 day cooling off period during which you can cancel without charge.
What do you mean by "changing the immobiliser"?

Nigel

raskazz

If a quotation is given but then new material facts are discovered or material facts change, the insurer is entitled to adjust the premium. However, if you had disclosed the correct information before the policy was incepted, the insurer could be considered to have waived its rights in this regard.

In your case it is something of a grey area in law as it depends on exactly what was said between you and the sales adviser. But you shouldn't really have to resort to law IMO.

To me it is a classic case of a sales adviser under pressure to meet targets. Of course he could have amended the security info and calculated the new premium before payment was taken. He obviously did not want to do this as he knew that if the premium increased that it would jeopardize his chances of making a sale.

This should really be quite simple to resolve by putting your complaint in writing by recorded delivery mail. A commonsense solution would be for them to waive the increase in premium or the cancellation fee, given that it would cost them much, much more to deal with an escalated complaint.

raskazz

noh wrote: »

There should be a 14 day cooling off period during which you can cancel without charge.

Under the cooling-off rights the insurer is entitled to charge for pro-rata cover or fair administration fees; they do not have to cancel 'without charge'.

barryjarcher

raskazz wrote: »

Under the cooling-off rights the insurer is entitled to charge for pro-rata cover or fair administration fees; they do not have to cancel 'without charge'.

I appreciate this, However THEY checked the details and the operator apologised that he missed the immboliser check out (it was down as a thatcham approved when it wasn't) did NOT tell me that the removal/change would alter the policy in any way otherwise I would not have given him my payment details. So do they deserve this administration charge for a mistake they made I think not.

I have been onto the FSA and they say that in this case they should not be able to charge this fee as the amendment was not down to my error and have recommended that I make a formal complaint.

raskazz

barryjarcher wrote: »

I appreciate this, However THEY checked the details and the operator apologised that he missed the immboliser check out (it was down as a thatcham approved when it wasn't) did NOT tell me that the removal/change would alter the policy in any way otherwise I would not have given him my payment details. So do they deserve this administration charge for a mistake they made I think not.

I have been onto the FSA and they say that in this case they should not be able to charge this fee as the amendment was not down to my error and have recommended that I make a formal complaint.

I understand this (check post#3); I was just correcting noh's post which was not wholly accurate.

noh

raskazz wrote: »

I understand this (check post#3); I was just correcting noh's post which was not wholly accurate.

I understand what you say perhaps I should have said you can cancel within the 14 day period without a cancellation fee. The original poster said the £20 was a cancellation fee but it now looks like it was a policy ammendment fee. Which by the sound of it he should not have to pay as it was the insurers mistake and secondly he cancelled the insurance when told of the fee so was the ammendment ever made?

Nigel

noh

raskazz
just reread your post and see that I was wrong about the cancellation fee. Although every insurance I have taken this year has had a 14 day cooling off period and the cancellation notice has stated no cancellation fee if cancelled in the 14 day period.

Nigel

noh

Just looked at the Budget Insurance T+C and the £20 they are asking for is a non refundable arrangement fee. So not a cancellation charge which would be £55 if outside the 14 day period.

http://www.budgetinsurance.com/car_terms.asp#8

Nigel