Cancellation fee on life insurance

Mamamany

A few months ago I looked into getting myself life insurance, I'm a single mum of 5 and would like them covered if anything happened to me. So the first company gave me a reasonable quote then asked for some further medical information so I called the drs then called back and left a message.
A couple days later someone phoned said all was well went through the final details and took my bank details. The very next day the first guy called back and it turned out it was some other company that called and took my details so I cancelled it with bank and called company, sent out letter etc.
Fast forward to now and I just had a phone call saying they've never received my cancellation so I'm due them £527!! Basically I've come here to see if anyone can help me find a way around this, I've tried explaining everything to them but they won't budge and are sending it to a debt collection agency so I can pay it up!!
Tia for any replies.

kingstreet

Life assurance doesn't have cancellation fees and you have a statutory 30 day cancellation period.

You need to be more specific about who you applied to and if a middleman was involved as this sounds like commission clawback.

"Some other company?"

Was this part of the advice process for a mortgage?

Mamamany

It was compare warehouse that called me, it was just an independent process, just so my kids have a financial fall back 'just in case'

csgohan4

a bit high for the cancellation fee?, what are the terms and conditions regarding this? Generally you cancel and your cover stops but if you went through a broker there might be conditions

dunstonh

You need to look at the fee agreement you signed with this company.

This is not a cancellation charge as such. It is a recovery charge for you creating the work but then pulling out and the fee, which would have been payable from the commission, no longer coming through to cover it.

If there is a fee agreement with a clawback clause, then these are normally enforceable in court. Without a signed agreement, then these are normally not enforceable.

Nearlyold

Which is the Company asking for the fee is it the first company that gave you the original "reasonable quote" or is it the second company the one that took your bank details that you refer to as "some other company". You need to be a lot clearer please. Did you take out any life cover with either company at all and receive any policy docs. Is compare warehouse the first or second company?

Mamamany

I never signed anything it was all done over the phone and I cancelled it a few days later. I was using a company called life search and then a company called compare warehouse called me, he never said the company just that he was calling about my quote and he had all my details.
It wasn't until life search called next day I realised my error so I cancelled the first policy by phone and sent a letter as requested, they claim I never did this and are charging me the £526 for not cancelling within the 30 day cooling off period.

dunstonh

If it was all done within 7 days, then they cannot enforce the fee.

usefulmale

Don't fret about the debt collection agency either. They have no powers. If you claim the debt is in dispute they must pass it back to the original company, who would then have to take you to court and win.

Hj13

Can I ask if you resolved this in the end?
Compare Warehouse are trying to charge me now and I am interested in how you got on???

dunstonh

Hj13 wrote: »

Can I ask if you resolved this in the end?
Compare Warehouse are trying to charge me now and I am interested in how you got on???

Maybe it would help if you gave your scenario.

Cancellation fees are allowed on insurance. Even within the cancellation period.