Please help - Hastings won't refund my annual payment during cool off period

AliGMel2

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,

Grey_Critic

There is a 14 day cooling off period so quite likely they will not rush to pay = Minus £20 admin fee? Does it say in the T&Cs that they will charge you that. Sounds a bit iffy to me.

DullGreyGuy

Grey_Critic said:

There is a 14 day cooling off period so quite likely they will not rush to pay = Minus £20 admin fee? Does it say in the T&Cs that they will charge you that. Sounds a bit iffy to me.

Fairly common practice to charge a small admin fee for cancellations before inception... some charge much more than £20.

Have to remember that cooling off periods give you a right to cancel, it doesn't automatically mean that the cancellation will be free of charge. Whilst for Motor insurers extend you a right to cancel after the cooling off period, unless you've had a claim, other classes of insurance (eg PMI) typically only give you the statutory cooling off period and no rights of cancel after that.

Insurers are generally governed by the Insurance Code of Business which is a handbook created and maintained by the Financial Conduct Authority. Having a quick look online ICOB 7.2.6(1) requires the insurer or broker refund the customer without unreasonable delay and within 30 days of the cancellation notification being received.

I would certainly argue their delay is unreasonable even if it will be within the backstop of 30 days.

Grey_Critic

I have only once cancelled during the cooling off period which was after I received the documentation and found it was nor what I was led to believe. I rang and cancelled explaining and followed up with an email. I was not charged.

I was charged by Hastings when they tried to Auto renew. I specifically told them when I took out the policy I did not Auto renew and had a confirmation fof that rom them in writing.

For a long time they tried to invoice me and I refused to pay. I still have the documentation on file if they ever try again.