car insurance changing fees mid contract

deanos

hi all
my daughter changed something on her policy recently adding a private plate , the documents for the insurance clearly state the fee for this change is £20 to amend , but they charged £25 and wouldn’t budge changing the cost has increased ,  can they do this mid contract , cheers 

dunstonh

deanos said:

hi all
my daughter changed something on her policy recently adding a private plate , the documents for the insurance clearly state the fee for this change is £20 to amend , but they charged £25 and wouldn’t budge changing the cost has increased ,  can they do this mid contract , cheers 

Yes. Indeed, it is almost inevitable as they have policies coming up for renewal 365 days a year.   Changing a non-contractual fee cannot match everybody's renewal date.

DullGreyGuy

dunstonh said:

deanos said:

hi all
my daughter changed something on her policy recently adding a private plate , the documents for the insurance clearly state the fee for this change is £20 to amend , but they charged £25 and wouldn’t budge changing the cost has increased ,  can they do this mid contract , cheers 

Yes. Indeed, it is almost inevitable as they have policies coming up for renewal 365 days a year.   Changing a non-contractual fee cannot match everybody's renewal date.

But it normally is a contractual fee otherwise there is no basis to charge it. With some they have more grounds to adjust it because the contract simply says there is a fee at the prevailing rate but if the OP's documentation simply states its £20 with no clauses to allow them to change it then its £20. 

It's common for insurers to implement a change and then have to wait 12 months for it to percolate through.


To the OP, firstly read your policy wording to see if it simply states its £20 or if it says something like "pay the current admin fee which at the time of writing is £20". Assuming it doesn't then lodge a complaint with them asking them to quote the clause they are relying on to adjust the fee mid term. If you aren't happy with their response you can go to the ombudsman. 

deanos

DullGreyGuy said:

dunstonh said:

deanos said:

hi all
my daughter changed something on her policy recently adding a private plate , the documents for the insurance clearly state the fee for this change is £20 to amend , but they charged £25 and wouldn’t budge changing the cost has increased ,  can they do this mid contract , cheers 

Yes. Indeed, it is almost inevitable as they have policies coming up for renewal 365 days a year.   Changing a non-contractual fee cannot match everybody's renewal date.

But it normally is a contractual fee otherwise there is no basis to charge it. With some they have more grounds to adjust it because the contract simply says there is a fee at the prevailing rate but if the OP's documentation simply states its £20 with no clauses to allow them to change it then its £20. 

It's common for insurers to implement a change and then have to wait 12 months for it to percolate through.


To the OP, firstly read your policy wording to see if it simply states its £20 or if it says something like "pay the current admin fee which at the time of writing is £20". Assuming it doesn't then lodge a complaint with them asking them to quote the clause they are relying on to adjust the fee mid term. If you aren't happy with their response you can go to the ombudsman. 

Yes it definitely says £20 I have attached a screenshot , I know it's only £5 but it's the principle of it 

Phoenix72

deanos said:

DullGreyGuy said:

dunstonh said:

deanos said:

hi all
my daughter changed something on her policy recently adding a private plate , the documents for the insurance clearly state the fee for this change is £20 to amend , but they charged £25 and wouldn’t budge changing the cost has increased ,  can they do this mid contract , cheers 

Yes. Indeed, it is almost inevitable as they have policies coming up for renewal 365 days a year.   Changing a non-contractual fee cannot match everybody's renewal date.

But it normally is a contractual fee otherwise there is no basis to charge it. With some they have more grounds to adjust it because the contract simply says there is a fee at the prevailing rate but if the OP's documentation simply states its £20 with no clauses to allow them to change it then its £20. 

It's common for insurers to implement a change and then have to wait 12 months for it to percolate through.


To the OP, firstly read your policy wording to see if it simply states its £20 or if it says something like "pay the current admin fee which at the time of writing is £20". Assuming it doesn't then lodge a complaint with them asking them to quote the clause they are relying on to adjust the fee mid term. If you aren't happy with their response you can go to the ombudsman. 

Yes it definitely says £20 I have attached a screenshot , I know it's only £5 but it's the principle of it 

And definitely no generic wording about fees being subject to change in the fees section?

Who is the insurer?

deanos

Phoenix72 said:

deanos said:

DullGreyGuy said:

dunstonh said:

deanos said:

hi all
my daughter changed something on her policy recently adding a private plate , the documents for the insurance clearly state the fee for this change is £20 to amend , but they charged £25 and wouldn’t budge changing the cost has increased ,  can they do this mid contract , cheers 

Yes. Indeed, it is almost inevitable as they have policies coming up for renewal 365 days a year.   Changing a non-contractual fee cannot match everybody's renewal date.

But it normally is a contractual fee otherwise there is no basis to charge it. With some they have more grounds to adjust it because the contract simply says there is a fee at the prevailing rate but if the OP's documentation simply states its £20 with no clauses to allow them to change it then its £20. 

It's common for insurers to implement a change and then have to wait 12 months for it to percolate through.


To the OP, firstly read your policy wording to see if it simply states its £20 or if it says something like "pay the current admin fee which at the time of writing is £20". Assuming it doesn't then lodge a complaint with them asking them to quote the clause they are relying on to adjust the fee mid term. If you aren't happy with their response you can go to the ombudsman. 

Yes it definitely says £20 I have attached a screenshot , I know it's only £5 but it's the principle of it 

And definitely no generic wording about fees being subject to change in the fees section?

Who is the insurer?

Yep it says they reserve the right to increase charges , it's buried at the bottom of a 30 page document , thanks for your help , does not seem fair as what's to say they could put it up to £100 if they wanted ! 

Thanks for the replies 

dunstonh

Yep it says they reserve the right to increase charges , it's buried at the bottom of a 30 page document , thanks for your help , does not seem fair as what's to say they could put it up to £100 if they wanted ! 

Theoretically, yes, but in reality, no.  The FCA's consumer duty exists to prevent that sort of thing, and the FOS applies consumer duty principles to any complaint.        If they could justify such a rise, then it would be allowable but if they couldn't then its likely a complaint would be upheld.

£20 to £25 is inflation territory.  Indeed, its lower than most insurers.   So, it would be easy to justify.   £20 to £100 would need very interesting justification!

deanos

dunstonh said:

Yep it says they reserve the right to increase charges , it's buried at the bottom of a 30 page document , thanks for your help , does not seem fair as what's to say they could put it up to £100 if they wanted ! 

Theoretically, yes, but in reality, no.  The FCA's consumer duty exists to prevent that sort of thing, and the FOS applies consumer duty principles to any complaint.        If they could justify such a rise, then it would be allowable but if they couldn't then its likely a complaint would be upheld.

£20 to £25 is inflation territory.  Indeed, its lower than most insurers.   So, it would be easy to justify.   £20 to £100 would need very interesting justification!

She has just had a phone call and the £25 has been waived and a refund issued , i did ask for a complaint to be started yesterday when on the phone to them  , so all has ended well, thanks for the replies