Dynamo cover deceptive business policy

623q

Tried to cancel a breakdown policy I no longer needed well within the cooling off period. To cancel online they force you to large penalties even though it’s 3 days into the cooling off period so 100% refund should have been due. Tried to call instead and was on hold for over 35 minutes before I was automatically cut off. So I’ve been forced to incur £50 of charges for a £100 policy I no longer wanted or needed, disgusting.

Bradden

Based  on you being due 100% refund I'm assuming the cover hasn't started yet. I'd suggest a letter or email requesting cancellation under the CRA. would cover for for any unreasonable charges.  I'm probably wrong on the legislation? @the_lunatic_is_in_my_head

623q

Thanks Bradden but looking at comments on this site and others Dynamo has a deliberate policy of not engaging with customers at all, ignoring emails, ignoring small claims and settling the day before court appearances. Most people don’t have the time to take it this far to get their money back and they know it.

sheramber

Was this a brand new policy or a renewal?

623q

Renewal of an existing policy

RefluentBeans

Im fairly sure they can charge admin fees and a proportion for the cover (although if it was £100 for the year, I imagine that’s pennies). 

I’m not sure what the fees are limited to, but know car insurance fees for cancellation are around £20-50 but that’s obviously much higher value insurance. So I can’t see that you being charged the same amount for insurance worth £100. Luckily insurance is regulated, so just keep pushing and they should cave as they don’t seem to be in line with the law. 

tightauldgit

When I Google Dynamo breakdown cover cancellation it says that you have to pay a £15.99 cancellation fee provided you haven't made a claim. Where are they getting the £50 from?

the_lunatic_is_in_my_head

Bradden said:

Based  on you being due 100% refund I'm assuming the cover hasn't started yet. I'd suggest a letter or email requesting cancellation under the CRA. would cover for for any unreasonable charges.  I'm probably wrong on the legislation? @the_lunatic_is_in_my_head

The cancellation regs (CCRs) have a general limit for insurance meaning none of that legislation applies  

I’m sure all breakdown cover is insurance so would assume their fees are legal but if not the company will have a complaints procedure and if they don’t resolve the customer can escalate to the ombudsman AFAIK.

Not sure on the legislation but the FCA regulate insurance and I think the company can charge for

https://www.handbook.fca.org.uk/handbook/ICOBS/7.pdf

The amount payable may include:

any sums that a firm has reasonably incurred in concluding the contract, but should not include any element of profit;

an amount for cover provided (i.e. a proportion of the policy's exposure that relates to the time on risk);

a proportion of the commission paid to an insurance intermediary sufficient to cover its costs; and

a proportion of any fees charged by an insurance intermediary which, when aggregated with any commission to be repaid, would be sufficient to cover its costs.

Bradden

@the_lunatic_is_in_my_head I'm glad I tagged you now.. i didn't consider the FCA. Thanks for correcting.

mksysb

623q said:

Renewal of an existing policy

If it's a renewal, there won't be a cooling off period.