Is it admin charge, a policy or will I get the other half refunded again

I'm confused as above I written the dates which the DD comes out on the start of each month

I paid an up front cost for my insurance

9 June upfront

2 July 

2 August 

I don't believe they should cut off part of the refund to cover the DD for September which I cancelled my insurance in August 

The £408 after a cancellation charge Is now half because that payment of September is being cut off

Unless the admin charge is one month's payment however the other half got taken out on the DD payment date of 2nd September 

They said in an email id get £204, however either the other £204 will get refunded, or they have a policy where I cancelled at the end of August, the September payment still has to come out which there is not enough time

However it still could get refunded as I did cancel in mate August hence no insurance in September 

Instead of another email reply clarifying, they told me to phone them 


  • Nearlyold
    Nearlyold Forumite Posts: 2,151
    Eighth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 13 September at 3:37PM
    They probably want to talk to you to 

    1) Understand fully what u think the issue is?

    2) Explain to you what the figures are and how they've been calculated.

    We'd really need all the amounts and dates and insurers terms re cancellation if you want further help from the forum regarding what you should be paying or refunded as your situation is a little unclear at present.
  • DullGreyGuy
    DullGreyGuy Forumite Posts: 6,175
    1,000 Posts First Anniversary Name Dropper
    In most cases you are buying an annual policy and the premium is due at the point of purchase. If you cannot afford this then you pay a deposit up front and get a loan for the balance. In some cases this will be a formal loan from a Premium Credit organisation and in others it will be the seller more informally lending you the money. 

    If you cancel the policy before its natural end then there may be an admin fee to be paid (or more than one if it's a broker). Taking into account this they will calculate what refund you are due from the original full premium. If you paid using a loan then the refund is applied to your outstanding balance due and you may find you still owe money or that you are in credit in which chase the excess will be refunded to you.

    They should tell you when you contact them to cancel if you owe them anything or they owe you anything. 

    There is the other complexity however of if you cancel within a couple of days of the next payment due date because the Direct Debit process takes a few days to run it can be too late to stop the next payment going out. If that's the case they'll just consider the DD against what you owe them (if anything) and refund any excess afterwards. 
  • Greg89
    Greg89 Forumite Posts: 273
    Ninth Anniversary 100 Posts Combo Breaker
    edited 13 September at 5:49PM
    This is what they state:

    "The refund balance of £409.16 was made up of the payment we were applying for on the 1st of September and any additional over payment. 


    As the instalment on the 1st of September failed to be taken from your account, we would write this off the total refund balance. 


    Meaning the remaining £134.41 was used to clear the over payment that had been made on the policy up till cancellation. "

    Why didnt they say £134.41?

    I cancelled on the 30th for the 31 August

    I don't know if the payment on the 1st will be refunded back, since the insurance cancelled in August 

    Is the case here the bottom paragraph from the above post of DullGreyGuy

  • sheramber
    sheramber Forumite Posts: 17,489
    Ninth Anniversary 10,000 Posts I've been Money Tipped! Name Dropper
    When they calculated your refund of £409.16 they had included the 1st September payment, thinking it would be paid.

    But it was nit paid - As the instalment on the 1st of September failed to be taken from your account, , they deducuted it from the £409.16 and refunded the balance.

    So you have the September payment still in your bank account and the balance as the refund, making a total of £409.16
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