Nova Direct Breakdown Cover (Pexinsure) What it says and doesn't say in my documentation

Promises

My Breakdown policy booklet, documentation and letters DO NOT mention any charges for autorenewal cancellation .  I don't have to renew until next month but I rang them to cancel their "invite to renewal" and was told that I had to go through a telephone cancellation process to complete. Whilst doing it, I was surprised that I couldn't avoid being charged £4.99 cancellation fee at the very least. The customer service staff didn't mention it so I did ring back to check!  Then I reread all my paperwork to find out when I'd signed up to this. My booklet said customers were automatically auto renewed unless you specifically write in to change. No mention of an admin or penalty charge if you do not stay with this company. (I hadn't needed to call them out.)

It's my first experience of this charge. I do look for different quotes each year (MSE advice) but if I'm charged to change, it could be a worrying trend! I've never had to pay a fee to cancel auto renewal before. I wrote to the Nova direct complaints and had a return email to say that it could take 8 weeks to investigate. Obviously, by that time, you would have to pay the fee. I did find other complaints on the internet about this issue but no practical advice apart from to avoid this company! 

Today, I checked their website and it is included in "terms and conditions" and that they can take payment up to 7 days before renewal date. In contrast, their renewal letter stated " If you wish us to cancel your policy and avoid auto-renewal, please contact us in order to discuss the cancellation process." There is no mention of a fee that must be paid or that they can take out payment early.  Surely, you have to be more "upfront" about charges and the place to do it is in the letter, policy booklet and documentation that you send to the customer. Additionally, taking out payment before the due date sounds unusual. I booked this online from a comparison site search engine. Has anyone challenged this with the company? 

Car_54

Promises said:

My Breakdown policy booklet, documentation and letters DO NOT mention any charges for autorenewal cancellation .  I don't have to renew until next month but I rang them to cancel their "invite to renewal" and was told that I had to go through a telephone cancellation process to complete. Whilst doing it, I was surprised that I couldn't avoid being charged £4.99 cancellation fee at the very least. The customer service staff didn't mention it so I did ring back to check!  Then I reread all my paperwork to find out when I'd signed up to this. My booklet said customers were automatically auto renewed unless you specifically write in to change. No mention of an admin or penalty charge if you do not stay with this company. (I hadn't needed to call them out.)

So why didn't you write?

DoaM

I suspect that's an unfair term in a consumer contract ... if the cancellation charge wasn't mentioned pre-contract then they can't unilaterally impose a change in T&Cs. Also, I believe making cancellation difficult is also a breach of consumer legislation, but I can't recall which one at the moment.

Promises

I have had "auto renewal" policies before and cancelled before the date if I didn't like the new quotation. I've had no admin/penalty charges before. This is why I didn't write. Never had an issue from other Breakdown companies which I've used in a period of over thirty years! 

Why are they not beholden to mention it in your documentation that you have to save? It's not as if people don't react to the charges as evidenced from feedback sites. This is win win for them but very unlikely to have repeat business from me and many others caught out. 

bikeman

Just been caught by the admin fees added to renewal and the admin fees added if I want to cancel.
Nova Direct are a bunch of crooks. Avoid them.

George_Michael

DoaM said:

I suspect that's an unfair term in a consumer contract ... if the cancellation charge wasn't mentioned pre-contract then they can't unilaterally impose a change in T&Cs.  Also, I believe making cancellation difficult is also a breach of consumer legislation,

It sounds like what they may be charging for is for allowing the cancellation to be processed over the telephone rather than by the method that the OP agreed to when taking out the breakdown cover which was autorenewal cancellation by post and if they were to do it that way, no charge could be made.

AdrianC

bikeman said:

Just been caught by the admin fees added to renewal and the admin fees added if I want to cancel.
Nova Direct are a bunch of crooks. Avoid them.

You mean the fees they told you about when you bought the policy?