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    Help needed with high cancellation fee re car insurance

    Ok I need someone to explain this to me as I just dont get how it can be so much. I have also included letter received today from the insurance. Right we took out a classic car insurance policy on 8/11/08 and paid £68.76 deposit by debit card. Since then no direct debits had come out as we had no recieved paperwork off Premium credit to sign ect, last week for a number of reason we felt the need to cancel insurance it basically is no longer required. We knew there would be some kind of cancellation fee but I wasnt expecting it to be £122.96!!! I also am concerned that in their letter they tell us that unless we pay in 7 days they will just go ahead and take the money using the details from the card I paid the deposit on which they obviously do not have my permission to do. Anyways could someone just have a look at the breakdown for me and explain how it can be so high? This cough and cold is clouding my head

    18 Comments

    Original Poster

    http://i19.photobucket.com/albums/b176/staceybrown/CCF20012009_00001.jpg

    Original Poster

    http://i19.photobucket.com/albums/b176/staceybrown/CCF20012009_00000.jpg

    its illegal for them to take money without permission.

    also if you havnt set up a direct debit then they shouldnt of kept your card details either

    sorry i cant help

    the best thing to do is call up ur bank and tell them to cancel the card and sent u the new one or just say u belive someone got ur card detail and u dun feel safe and ask them to change the card.

    wat car insurance company is this?
    worst come to worst take them to trading standards .

    My friend worked for a car insurance company for years and this happened a lot. He used to get grief on the phone from customers but its all legit. Basically , once you take a 12 month policy out, if you then cancel after only a month, your likely to have to still pay for 8 months of the policy. If you cancel after 6 months, then you're unlikely to get anything back of the 12 months at all.

    Its not like car tax where if you cancel after a month you get the remaining 11 months back. Its basically there to stop you cancelling after you buy.

    Sorry , but your stuck and have to pay up. Either by CC or they will send in the debt collectors.

    Original Poster

    I was fully aware there would be some sort of charge to pay but was expecting around £30 I also dont know why they have my card details kept on file???

    Original Poster

    sharonwai;4127864

    wat car insurance company is this?worst come to worst take them to … wat car insurance company is this?worst come to worst take them to trading standards .



    Performance Direct

    well if they do try and take it without permission then report them. try talking to them. they might let you get away with it or pay less as you have written proof they will take it without permission which will not look good for them! (like i said they arnt allowed to keep card details... unless debit payment thing set up) hope you get it sorted.

    Original Poster

    corriessvk;4127956

    well if they do try and take it without permission then report them. try … well if they do try and take it without permission then report them. try talking to them. they might let you get away with it or pay less as you have written proof they will take it without permission which will not look good for them! (like i said they arnt allowed to keep card details... unless debit payment thing set up) hope you get it sorted.



    Who would I report them to?

    jdpwest;4127865

    My friend worked for a car insurance company for years and this happened … My friend worked for a car insurance company for years and this happened a lot. He used to get grief on the phone from customers but its all legit. Basically , once you take a 12 month policy out, if you then cancel after only a month, your likely to have to still pay for 8 months of the policy. If you cancel after 6 months, then you're unlikely to get anything back of the 12 months at all.Its not like car tax where if you cancel after a month you get the remaining 11 months back. Its basically there to stop you cancelling after you buy.Sorry , but your stuck and have to pay up. Either by CC or they will send in the debt collectors.



    agreed, you will have to pay it as it is the same with any contract - you cancel the contract part way through then you have to pay for the remainder of the contract.

    It's not a cancellation fee, just the amount you owe for the time they have insured you. Luckily for you they never cancelled your policy as that greatly affects the cost of your next policy.
    Just a hiccup that you never signed the DD but you entered into a contract when you paid the deposit and are now bound by it's terms (including them taking what you owe from your card).
    Contact them and see if you can speak to someone about spreading the cost of the outstanding amount so if you do cancel your card to stop them, they wont take it further to recover their money. Sorry its not good news.

    If you read through the terms and conditions, you will most likely find something that says they have the right to charge you a certain amount. Totally rip off and I cannot believe they are allowed to get away with this

    The OP said he had not yet signed anything. Would think it's not a contract untill a contact is signed

    It looks to me like they want the payments for the insurance that you said have not been taken out not a cancellation fee

    Original Poster

    No direct debits have been taken out as I only received the paperwork last week from Premium credit, I did wonder why it took so long for them to send it. but thats hardly my fault?
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