@Adrian Flux fluxed me ! - advice needed.

pluciorx

How I have been fluxed!

Everything is fine until you say You would like to leave,
On 25/05 we have got a new ERS policy over the phone through Adrian Flux and paid 64.40.
They charge non-refundable fee of £100 and my policy cost was £329.36 making this total 429. + 16% making total premium credit finance of £490.
On 26/08 I have asked them to cancel the policy due to car being sold so after exactly 3 months.
To this point we have already paid 64.40 + 47.24 + 47.24 + 47.24 making total of: 206.12
(last direct debit payment has been taken after policy was cancelled)
We have received a message on 04/09 saying that we still owe £96.43.
I immediately called them and asked for explanation how this is possible as we paid already much more, on 14/09 AF answered:
[FONT=&quot]we deducted our commission
and a £25 administration fee, leaving a refund of £154.05[/FONT]
[FONT=&quot]
[/FONT]This was set against an outstanding balance of 250.48 with premium credit leaving £96.43 to pay.
I asked them for statement of my account as I do not understand and was not aware of any commission to be paid apart from the initial £100, and I was expecting only contractual cancellation fee of £25 as we paid proportionally much more than we have used. When I spoke with insurance company they confirmed that they issued a pro-rata refund, which is based on the number of days that your policy was in force.
On 18/09 I have explained that this is not in line with what information I have been given when signing a contract and those fees were not explained to me when I was offered insurance, and I would like to make a formal complaint about this and that I’m willing to pay contractual cancellation fee of £25 on top on what I have already paid.
On 19/09 after their working hours I have received an email that they are adding additional £35 to the balance for debt recovery agency and now the total balance payable is £131.4,
Rang them immediately to get explanation just to be told that they are closed now.
Nowhere in Your Documents You are able to actually find out what is the full cost of policy, and what are the real costs. They did not explain to me how much refund was given by the insurance company and dealt in worst possible outcome with premium Credit by cancelling the credit agreement ( early repayment and refund would be my preffered way to avoid cancellation fees ! )

Cancellation cost of £25 is a fiction and new fees like “commission” shows up.
I would like to make a formal complaint on the grounds above, can anyone confirm the best way?
There are plenty better brokers there... Yes, they are not even insurers, just brokers trying to drain You as much as possible, when they find out that You want to cancel policy You took through them.

Be warned.

dunstonh

and I was expecting only contractual cancellation fee of £25 as we paid proportionally much more than we have used.

You borrowed the money to pay the insurance premium plus the broker charge. The insurance company get their money up front from Premum credit. You pay monthly to premium credit. So, the insurer would issue a refund.

That refund goes against the money you borrowed. The refund will also not be exactly pro-rata. It will be rounded to the next month or two.

On 18/09 I have explained that this is not in line with what information I have been given when signing a contract and those fees were not explained to me when I was offered insurance, and I would like to make a formal complaint about this and that I’m willing to pay contractual cancellation fee of £25 on top on what I have already paid

Ok. So, you told them that you refused to pay what you owe.....

On 19/09 after their working hours I have received an email that they are adding additional £35 to the balance for debt recovery agency and now the total balance payable is £131.4,

...and because you told them that, they did not accept it and are passing it to a debt collection agency. This will be recorded on your credit file too. So, hopefully you are not going to be needing any credit in the next few years.

Nowhere in Your Documents You are able to actually find out what is the full cost of policy, and what are the real costs.

You have explained the costs. £329.36 premium. £100 broker charge plus 16% interest rate.

They did not explain to me how much refund was given by the insurance company and dealt in worst possible outcome with premium Credit by cancelling the credit agreement ( early repayment and refund would be my preffered way to avoid cancellation fees ! )

They told you what you owed. You asked to cancel and this would cancel the credit agreement. You dont avoid cancellation charges when you cancel.

Cancellation cost of £25 is a fiction and new fees like “commission” shows up.

£25 is quite typical as a cancellation charge across most companies. As long as it is published, they can charge it.

I would like to make a formal complaint on the grounds above, can anyone confirm the best way?

You said in your post that you already have made a complaint on the 18th. So, you need to wait for the outcome of that now.

pluciorx

Issue is now resolved AF manager called me and offered reasonable solution.