Car insurance Hastings cancellation - no refund 23 August 2022 at 1:14PM in Insurance & life assurance 6 replies 163 views

AliGMel2

Hi

I can't find the category for this, sorry!
I cancelled my new policy with Hastings for my car 2 days after paying in full the annual amount. I received notification of my policy being cancelled on Aug 13th. My policy due date is Sept 5th. I have decided to renew with current provider as they made a better offer with more things included. Hastings says they won't return my payment (minus £20 admin) until Sept 5th apparently and quote from an operator "in case I change my mind and I want to reinstate my policy"! This is a payment of nearly £300 which I need for my current renewal policy with Churchill. Is this legal? This is my money and Hastings can't decide to retain and withhold my money for nearly a month surely??
Thank you,

MalMonroe

Oh dear, this doesn't bode well for me as I'm with Hastings right now and about to call them about the renewal price they've sent me, which is too high and which I'm hoping to negotiate down. (As I did last year.)

I would phone Hastings and tell them that you cannot afford to pay for two lots of insurance and that you are entitled to cancel, free of charge, within the 14 day period after signing up. I had to phone them to negotiate my renewal with them last year and I found it far easier to phone them and say what I thought/wanted with my car insurance. They reduced the renewal price by £50 so I'm hoping for the same again this year, fingers crossed!  I do think it's a cheek for them to charge a £20 admin fee too and I'd ask them for that back, given that the policy isn't even due to start until 5 Sept. It's always worth a try.  

Alderbank

AliGMel2 said:

Hi

I can't find the category for this, sorry!
I cancelled my new policy with Hastings for my car 2 days after paying in full the annual amount. I received notification of my policy being cancelled on Aug 13th. My policy due date is Sept 5th. I have decided to renew with current provider as they made a better offer with more things included. Hastings says they won't return my payment (minus £20 admin) until Sept 5th apparently and quote from an operator "in case I change my mind and I want to reinstate my policy"! This is a payment of nearly £300 which I need for my current renewal policy with Churchill. Is this legal? This is my money and Hastings can't decide to retain and withhold my money for nearly a month surely??
Thank you,

They are subject to the Consumer Rights Act 2015 which says that your refund must be given without undue delay, and in any event within 14 days beginning with the day on which the trader agrees that the consumer is entitled to a refund. 14 days from Aug 13th is Saturday Aug 27th
However in practice there is no simple and speedy way to enforce this right.

Insurers are highly regulated. You should call their customer complaint number 0333 999 8904 and hopefully speak to a better trained advisor than the previous one. Make sure to tell them that you know their obligations under CRA2015

born_again

https://forums.moneysavingexpert.com/discussion/6381614/please-help-hastings-wont-refund-my-annual-payment-during-cool-off-period#latest

DullGreyGuy

Alderbank said:

AliGMel2 said:

Hi

I can't find the category for this, sorry!
I cancelled my new policy with Hastings for my car 2 days after paying in full the annual amount. I received notification of my policy being cancelled on Aug 13th. My policy due date is Sept 5th. I have decided to renew with current provider as they made a better offer with more things included. Hastings says they won't return my payment (minus £20 admin) until Sept 5th apparently and quote from an operator "in case I change my mind and I want to reinstate my policy"! This is a payment of nearly £300 which I need for my current renewal policy with Churchill. Is this legal? This is my money and Hastings can't decide to retain and withhold my money for nearly a month surely??
Thank you,

They are subject to the Consumer Rights Act 2015 which says that your refund must be given without undue delay, and in any event within 14 days beginning with the day on which the trader agrees that the consumer is entitled to a refund. 14 days from Aug 13th is Saturday Aug 27th
However in practice there is no simple and speedy way to enforce this right.

Insurers are highly regulated. You should call their customer complaint number 0333 999 8904 and hopefully speak to a better trained advisor than the previous one. Make sure to tell them that you know their obligations under CRA2015

No, FS is outside the scope of CRA however as noted on the other thread, insurers are subject to the FCA ICOB rules which state it must be refunded without unreasonable day and no later than 30 days from the request to cancel being received.

Alderbank

DullGreyGuy said:

Alderbank said:

AliGMel2 said:

Hi

I can't find the category for this, sorry!
I cancelled my new policy with Hastings for my car 2 days after paying in full the annual amount. I received notification of my policy being cancelled on Aug 13th. My policy due date is Sept 5th. I have decided to renew with current provider as they made a better offer with more things included. Hastings says they won't return my payment (minus £20 admin) until Sept 5th apparently and quote from an operator "in case I change my mind and I want to reinstate my policy"! This is a payment of nearly £300 which I need for my current renewal policy with Churchill. Is this legal? This is my money and Hastings can't decide to retain and withhold my money for nearly a month surely??
Thank you,

They are subject to the Consumer Rights Act 2015 which says that your refund must be given without undue delay, and in any event within 14 days beginning with the day on which the trader agrees that the consumer is entitled to a refund. 14 days from Aug 13th is Saturday Aug 27th
However in practice there is no simple and speedy way to enforce this right.

Insurers are highly regulated. You should call their customer complaint number 0333 999 8904 and hopefully speak to a better trained advisor than the previous one. Make sure to tell them that you know their obligations under CRA2015

No, FS is outside the scope of CRA however as noted on the other thread, insurers are subject to the FCA ICOB rules which state it must be refunded without unreasonable day and no later than 30 days from the request to cancel being received.

My reference was CMS Law Now:
https://www.cms-lawnow.com/ealerts/2015/10/consumer-rights-act--impact-on-the-insurance-market?cc_lang=en

The main provisions of the Consumer Rights Act 2015 came into force on 1 October 2015, with later provisions commencing on 1 April 2016 in relation to consumer transport services contracts (rail, air, sea and inland waterway transport).
Despite the main focus applying to retailers, the Act also applies to consumer insurance contracts and the insurance market should be aware of its impact...

DullGreyGuy

Alderbank said:

DullGreyGuy said:

Alderbank said:

AliGMel2 said:

Hi

I can't find the category for this, sorry!
I cancelled my new policy with Hastings for my car 2 days after paying in full the annual amount. I received notification of my policy being cancelled on Aug 13th. My policy due date is Sept 5th. I have decided to renew with current provider as they made a better offer with more things included. Hastings says they won't return my payment (minus £20 admin) until Sept 5th apparently and quote from an operator "in case I change my mind and I want to reinstate my policy"! This is a payment of nearly £300 which I need for my current renewal policy with Churchill. Is this legal? This is my money and Hastings can't decide to retain and withhold my money for nearly a month surely??
Thank you,

They are subject to the Consumer Rights Act 2015 which says that your refund must be given without undue delay, and in any event within 14 days beginning with the day on which the trader agrees that the consumer is entitled to a refund. 14 days from Aug 13th is Saturday Aug 27th
However in practice there is no simple and speedy way to enforce this right.

Insurers are highly regulated. You should call their customer complaint number 0333 999 8904 and hopefully speak to a better trained advisor than the previous one. Make sure to tell them that you know their obligations under CRA2015

No, FS is outside the scope of CRA however as noted on the other thread, insurers are subject to the FCA ICOB rules which state it must be refunded without unreasonable day and no later than 30 days from the request to cancel being received.

My reference was CMS Law Now:
https://www.cms-lawnow.com/ealerts/2015/10/consumer-rights-act--impact-on-the-insurance-market?cc_lang=en

The main provisions of the Consumer Rights Act 2015 came into force on 1 October 2015, with later provisions commencing on 1 April 2016 in relation to consumer transport services contracts (rail, air, sea and inland waterway transport).
Despite the main focus applying to retailers, the Act also applies to consumer insurance contracts and the insurance market should be aware of its impact...

As per your own link...


Insurance is not expressly excluded under the Act, but the Act applies only to the extent that the service provided is not subject to separate existing legislation that provides for more extensive consumer rights than under the Act. As a result, the impact of the provisions on the supply of insurance services is likely to be limited given the extensive rights already set out in financial services legislation and the Financial Conduct Authority Rules. 

As stated, and linked to in the other thread, the FCA also states that it shouldn't be unreasonably delayed however the back stop is 30 days not 14