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Breakdown cover extra payment
I pay for my breakdown cover annually, in full, each summer. This morning I got an email saying they're going to take an extra payment soon. The payment is about an extra 25%.
Can they do that?
Is there still a point to using a comparison site if the companies can add a secondary charge at will?
Thanks in advance for your thoughts.
Can they do that?
Is there still a point to using a comparison site if the companies can add a secondary charge at will?
Thanks in advance for your thoughts.
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Which Breakdown company we talking about here?
"I am writing to you today with regards to your upcoming contract price adjustment. As I’m sure you’re aware; every year your contract with us increases in line with the Retail Price Index plus 3.8%. As a business, we have always chosen to increase prices by what the market determines and are guided by the UK Government and Office for National Statistics as this always ensures that we’re never charging a customer unnecessary cost."
"For Customer’s who Pay In Full
https://forums.moneysavingexpert.com/discussion/6353864/annual-rpi-increase-on-already-paid-breakdown-insurance
Sounds like a bunch of sharks but I imagine it is in their T&C so you know what to do when it expires if you end up paying it.
https://dynamocover.com/prices/
"Each year the Fee for our service or our Membership Fee will be subject to an annual increase. This is determined by calculating to the total amount paid to us by the RPI Rate plus an additional 3.8%, which is applied at the same time."
What they have done is calculatethe increase on the BREAKDOWN INSURANCE PREMIUM, this is a price that is then heavily discounted to the amount you actual pay. That is a total and utter breach.
Best way to solve this is to raise a formal complaint with the company, wait 8 weeks, or until they answer, whatever is the soonest, they file a complaint with the financial ombudsman
That link's dead.
If it breaks, well it wasn't working right anyway.