Fined £475.50 for cancelling insurance within 3 days

Rich4047

Hi,
I got my car insurance with a company called QuoteLineDirect 3 days ago and I decided to cancel it today. On the phone with them they said I had to pay a fee of £47.50 for cancelling. I'm aware this sort of admin fee is normal if you cancel normally, but I thought FSA guidelines had a cool off period (or whatever it is called) of 7 days or possibly 10 days? I said so to the woman and she said that it is in their T&C... which I have no doubt it is. But is there a 7 day (or 10day etc) cooling off period were you are entitled to a full refund without a fine?
Thanks,
R

Caz3121

was the policy due to start in the future or had it already started?

dunstonh

but I thought FSA guidelines had a cool off period (or whatever it is called) of 7 days or possibly 10 days?

FSA is food standards agency. You mean FCA.

The cancellation rights period is not a free period. They are allowed to charge for time on cover and a small admin charge to cover their initial costs. Typically upto £50.

But is there a 7 day (or 10day etc) cooling off period were you are entitled to a full refund without a fine?

It is not a fine. it is a charge. And no, there is no free period.

agrinnall

Think yourself lucky that it's only £47.50 and not the £475.50 that you wrote in your title!

Merlin139

The title of the thread is wrong its not a Fine its an Admin Fee!

Rich4047

Thanks for all the replies. Yeah I meant FCA and just spotted that £475 error in my title. Tiring day today... so those were 2 of several errors lol. So from your replies it seems they were within their rights.
So what products does cooling off periods apply to then... I know it applies to when you join a new phone company like EE, O2 etc as I've exercised this right, and for a lot of products you buy in shops... Eg a new TV can be brought back with a certain time (can't remember if it's 7 or 14 days but something like this) as long as unused and in its original packaging. Why is something like this different then?
Ps agrinnall..... why would I think myself lucky I wasn't charged £475?? Idiotic comment! Don't reply if you can't come up with a sensible comment.

Rich4047

The policy had started 3 days ago

elsien

There isn't a cooling off period for items you've bought in store. Some places such as Argos offer the option for most goods as a sales technique but the only absolute right you to have to return TVs etc bought instore is if they are faulty. The rest is down to store goodwill.

You may be thinking of the returns position for online goods which you've not had the chance to physically inspect before buying.

sheramber

You have no rights to return a product bought in a shop because you change your mind.

Any return for a change of mind is a goodwill gesture by the shop

elsien

You've also got it wrong for mobile phones. The 14 days applies to online or telephone purchases. And as with insurance there will be a charge if you've already started using the contract.

Quentin

Rich4047 wrote: »

........... So what products does cooling off periods apply to then... I.

The 14 day cancellation period you get with a policy means that if you cancel within that time you only pay for the exact pro rata for the days on cover as well as any cancellation fees

Outside that period then expect a much higher charge for the period covered than exactly pro rata