Breakdown cover - RPI

Refund_me

Hope someone can help.

I took out breakdown cover at the end of January and paid an annual premium amount via a broker. 

Today the broker contacted me and is asking for extra to cover RPI - so 13.4% + 3.8 % - 17.2% total. 

I paid a premium of £20.15 and that was the only figure quoted to me, there is an excess on my policy for any claim which I am fine with. 

In their calculations they have said that premium was actually £49.27 and that I received a discount when I paid - this was never notified to me in any of the documents sent to me.

So I have a few issues here:

Can they charge me RPI when I paid for a years cover in advance? 

Can they base this charge on an increased premium I was never aware of, claiming I received a discount when I bought the policy?

Can they charge RPI increase for past charges, so basing the charges on the whole year charge - despite being part way through the year already?

It is only a small amount, but I imagine they are doing this to plenty of customers. 

Thanks in advance.

lisyloo

What do they mean by RPI?
and what do the figures quoted related to?

Refund_me

Retail Price Index 

So businesses can charge you an increase of RPI plus 3.8% each year, you often see this with mobile phones etc. 

RPI is set by the government each year based on inflation etc. 

lisyloo

thanks for confirming.
So that would be for a renewal?

Can you confirm you paid end of January for an entire year?

If it's a renewal you can decline to renew and take your business elsewhere.

Refund_me

I paid for an entire year yes, they are trying to charge me more for the cover I have already paid for - so for the cover that will expire next January.  

lisyloo

It doesn't sound right to me.
What I would do in your position is ask them to point to the term in their terms and conditions that allows them to charge you this up lift mid-policy.
If you aren't satisfied with their response raise a formal complaint.
You have recourse free of charge to their complaints procedure and to the ombudsman.

it might also be an idea to have a quick look through the terms and conditions yourself (the relevant section).

Johnsrogerson

Does not sound right to me either. And Also evident by looking online