Because this blog post has gained ranking in Google for searches relating to the 14 day cooling off and cancellation period I have added the following:
For facts regarding 14 day cooling off periods, refer to the FSA handbook:
Items marked with a capital ‘R’ are rules.
If you need further advice the FSA can be contacted by phone: 0845 606 1234
It makes sense to fully read and understand the terms and conditions of your contract before committing to anything.
What I have learned: The 14 Day Cooling off period for insurance is pointless because insurance companies are allowed to charge a ‘reasonable’ fee for admin charges even if you cancel within the statutory 14 day period.
You can dispute any fees if you think they are excessive and unlawful. Your insurer should have a complaints procedure for you to follow or if in doubt, contact the FSA.
Online Car Insurance Comparison, Mortgages and Loans – Creditmarket.co.uk
And now the blog post! Please feel free to read on…
This is a continuation of a previous post regarding 14 day cooling off periods and cancellation fees.
Following the cancellation I have since received 2 letters from NU both claiming I owe different amounts!
One for the amount of £24.07 which it turns out was a complete admin error and should never have been sent because the figures don’t correspond to any of their fees or charges.
The second for £57.82 which is their £52.50 late cancellation fee and £5.32 for the two days of cover I had before canceling.
So before watching the British Grand Prix I thought I’d call them and see what it was all about.
When I spoke with NU on Friday I was told that if no payment had yet been made towards the new policy, the new contract would not yet be in place and I would be able to cancel without charge. Apparently this isn’t true and I shouldn’t have been told it.
So, misinformation and letters sent with imaginary fee amounts…..from NU. Inspires confidence doesn’t it!
I tried to explain that the FSA had told me they thought NU were bending the rules a bit but the operator thought I was just making up excuses! In actual fact, he just didn’t have any idea what I was talking about because, despite working in the cancellation department, he hadn’t been trained on the FSA rules.
The long and short of this mornings phone call is I now have to write to the Customer Services Manager detailing the reasons why I don’t think I should pay the cancellation fee.
I think I’ll do that after the Grand Prix!
An afterthought regarding fees is that with bank fees, they are deemed unlawful because they are excessive compared to what the fee relates to.
I therefore also think this cancellation fee is unlawful because the same amount of admin would be required to cancel the policy if it was cancelled in time and there is no charge for that!
So to charge a fee just to do the same thing a day or two later, I think, is totally unreasonable and unlawful!
I will blog about the response to my letter…!