Hastings is taking my money hostage - help!

dawnofthedave

Hi all I need help as Hastings is withholding a refund of hundreds of pounds for weeks and I can't seem to find out exactly why they are doing this or what my rights are. Any help?

I cancelled car insurance within the 14 day cooling off period (because they wanted double premiums based on my risk profile actually going down significantly - odd one).

They cancelled it on the phone and said at the time of cancellation on the phone that the refund would be with me within three days from then.

Since then, they sent me a message saying it would 5 days AFTER the original start date which is in three weeks' time. So they won't cancel it now like I asked they will only cancel it on the day it was due to start. The car insurance policy was never due to start until the end of the month (a few weeks away still). So this means it's going to be 3 weeks + 5 days - basically 4 weeks away and its hundreds of pounds.

I have argued with them and they first said they couldn't cancel the policy until the original start date because I "could make a claim". I asked them how I could possibly make a claim if I have cancelled insurance weeks before it has even become active and they didn't answer me.

They then said it is impossible for them to cancel it any earlier because their systems won't let them. I said it is clearly not impossible for Hastings to issue a refund, it might be inconvenient or not possible for a normal customer services rep to do, but that it is clearly within the realms of possibility for Hastings to physically be able to issue a refund within a reasonable time frame - just as it is possible for me to log into online banking at any time and transfer money. 

It's hundreds of pounds, they're gaining interest on it for weeks, and now I don't have money for the weekly food shop while they're making interest on my money! This is because I already paid for new car insurance with another insurer after they originally told me it would be back with me within three days. And then they backtracked.

Is there anything else I can do? What are my rights here? They are not responding to my questions and are trying to fob me off by just repeating that it is not possible with no explanation that makes any logical sense. I feel that the time frame for the refund is unreasonably long.

I've used Hastings for care and home insurance in the past but just don't trust them anymore based on how they have treated me, tried to fool and trick me, lied to me and taken me for a fool.

DullGreyGuy

Make sure it has been logged as a complaint and make sure you make it clear you want a final response in writing (email or paper) so you can take the matter to the Financial Ombudsman if you arent satisfied. 

Any complaint open more than 2 days (from memory, could be wrong/it changed) must have a final response issued but certainly in my consumer days if they log it, tell you they've raised a manual payment request and then close it as the problem solved the same day then no letters are automatically generated. 

It won't speed matters up materially, the ombudsman is a very long/slow process, but it will make sure you are compensated appropriately if the ombudsman agrees they acted incorrectly. 

JGB1955

How did you pay?

dawnofthedave

JGB1955 said:

How did you pay?

Via debit card 

dawnofthedave

DullGreyGuy said:

Make sure it has been logged as a complaint and make sure you make it clear you want a final response in writing (email or paper) so you can take the matter to the Financial Ombudsman if you arent satisfied. 

Any complaint open more than 2 days (from memory, could be wrong/it changed) must have a final response issued but certainly in my consumer days if they log it, tell you they've raised a manual payment request and then close it as the problem solved the same day then no letters are automatically generated. 

It won't speed matters up materially, the ombudsman is a very long/slow process, but it will make sure you are compensated appropriately if the ombudsman agrees they acted incorrectly. 

Ok thanks for this, I just can’t believe they are allowed to hang on to hundreds of pounds of other peoples money and gain interest of it for weeks with no effective recourse. A total con. 

DullGreyGuy

dawnofthedave said:

DullGreyGuy said:

Make sure it has been logged as a complaint and make sure you make it clear you want a final response in writing (email or paper) so you can take the matter to the Financial Ombudsman if you arent satisfied. 

Any complaint open more than 2 days (from memory, could be wrong/it changed) must have a final response issued but certainly in my consumer days if they log it, tell you they've raised a manual payment request and then close it as the problem solved the same day then no letters are automatically generated. 

It won't speed matters up materially, the ombudsman is a very long/slow process, but it will make sure you are compensated appropriately if the ombudsman agrees they acted incorrectly. 

Ok thanks for this, I just can’t believe they are allowed to hang on to hundreds of pounds of other peoples money and gain interest of it for weeks with no effective recourse. A total con. 

You can read the regulations https://www.handbook.fca.org.uk/handbook/ICOBS/7/2.html 

The FCA requires them to return the money without undue delay with a backstop of 30 days. 

As to "interest", well that depends, Hastings are both a broker and an insurer, in principle if the underwriter wasnt Hastings then the monies may have already been paid over to the insurer and so Hastings are only sitting on their 10% commission and if that has occurred then technically they'd be refunding you out of their own pocket before the underwriter has returned the premiums. 

Consumer lines business is very short tail, compared to like Marine or Life, as such underwriters are highly limited in what they can invest in and get tiny amounts of interest compared to Life insurers etc who can invest in much more illiquid asset classes that get much better returns. Similarly premiums paid, particularly for Motor are often below the capital required to be held (and a bound but not incepted contract does attract capital) so not only is your premiums in some c1% returning fund but they've had to add some of their own money to it at the same poor rate to be adequately capitalised.