RAC help

6
Found 9th Aug 2017
I cancelled my insurance policy with RAC now 1 month ago due to selling my car hence no longer requiring insurance. I got notification that it was cancelled & have the proof of cancellation. I was told that the money would be reimbursed to me within 5-7 working days.. It's now been a month & I still DONT have the money reimbursed. ( i can provide them with proof the money has never went into my account).
I have phoned them on 4 occasions since the initial phone call to cancel my policy to try and resolve the situation to be repeatedly told to "wait" it will be on its way they have authorised the payment from their end. the last time i phoned which was now over a week ago (working days) they told me they would cancel the original refund and reissue it to me with a marker on it so they can see when it is credited to my account - again told this would take 5-7 working days. We have now reached that and again still no money in my account.
I have checked they are reimbursing to the right card which they are, i have checked with my bank (as RAC tried to make on my bank would be with holding the money) and there is no problems with my card. I dont know what to do aside from keep phoning them. But it seems i'm getting no where. I cant keep phoning them endlessly just to be told to keep waiting.
does anyone have any advice as to what I should do or where I can turn to?
there must be something I can do. Right now they are still in possession of MY money without my consent... doesnt that equate to theft!?
i've never had any issues with RAC prior to this but this is the first time i've had to cancel my policy. They are a huge company so I wouldnt have thought it likely that they purposefully withhold my money but "weve authorised the payment" just isn't good enough.The money which rightfully belongs to me has not been refunded - there must be something I can do?
(going to email them detailing everything but not holding my breath)
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6 Comments
They are a broker ,for insurance , maybe they are waiting for the refund from the company that are insuring you ? Be aware there will be an admin fee for cancelling and if you are paying monthly (in effect a loan with high APR ) to buy the years insurance you may actually owe them . If you paid the year up front there is really no excuse for them taking so long .
"...Right now they are still in possession of MY money without my consent... doesnt that equate to theft!?"


Not if you gave permission to your bank to make a payment from your account or your credit card issuer to make a payment on your behalf.


Contact the organisation with your funds & advise them if the outstanding balance is not returned to you within three working days you will refer them to the Financial Ombudsman.
fanpages2 h, 38 m ago

"...Right now they are still in possession of MY money without my …"...Right now they are still in possession of MY money without my consent... doesnt that equate to theft!?"Not if you gave permission to your bank to make a payment from your account or your credit card issuer to make a payment on your behalf.Contact the organisation with your funds & advise them if the outstanding balance is not returned to you within three working days you will refer them to the Financial Ombudsman.


I gave permission for the payment to be taken for the period of 12 months on the basis i would be requiring that service for 12 months. I paid the year upfront & as I only used 6 months of insurance hence cancelling the policy they are due to reimburse me the remaining, minus any cancellation fee. with this they confirmed the amount they owe me (there has never been any debate about that). They still have my money for a service that i one no loner require and two they arent actually providing as it has been cancelled, so again, technically they have my money for no reason. They are no longer providing the service the payment was for hence they should not be in possession of that money as it is not rightfully theirs

The point is that the money has never been refunded to me. it should take 5-7 working days & i've been waiting a month with numerous phone calls & even them saying they would reissue the payment. I have no idea what is going on but clearly something is going wrong somewhere. They tell me they cant do anything else as from their side the payment has been authorized, that I just have to wait.... but for what? because if the money was going to go into my account it would have by now!
won't i have to cover the legal costs for the financial ombudsman?

rogparki2 h, 50 m ago

They are a broker ,for insurance , maybe they are waiting for the refund …They are a broker ,for insurance , maybe they are waiting for the refund from the company that are insuring you ? Be aware there will be an admin fee for cancelling and if you are paying monthly (in effect a loan with high APR ) to buy the years insurance you may actually owe them . If you paid the year up front there is really no excuse for them taking so long .


i believe the underwriter to my policy is aviva.
i paid the whole year upfront & was exactly halfway through my policy when I cancelled. deducting the cancellation fee they are due to reimburse me quite a lot.
Edited by: "little_green" 9th Aug 2017
little_green1 h, 40 m ago

...won't i have to cover the legal costs for the financial ombudsman?



It won't get that far. If you speak to a manager (rather than a nobby-nolevel) they'll hear "Financial Ombudsman" & your refund will arrive in days.
Little_green i found this on money supermarket - from experience i don't think you are likely to get refunded for the remaining 6 months. Hope you get it resolved asap... i can imagine it is a nightmare as i have been through it. But luckily my insurance company wasn't RAC

Will I get a refund if I cancel my insurance?
You might expect to get something close to a pro rata refund of any premiums, less any cancellation charge. So if you’ve got six months left on your policy, you’d think you’d be due six months-worth of premiums back.

You’d probably be disappointed. Practice varies, but insurers usually don’t refund the last two months of premiums, so if you are close to renewal, it’s probably worth seeing out the remaining months before you switch to a better deal elsewhere.

And, provided you've not made any claims, hanging on to your policy until it ends will also ensure you get the no claims bonus for that year.

If you cancel half-way through the year, you’ll probably only get four months of premiums back. This is all because insurers fund their admin costs with the early months’ premiums.

Can I cancel if I'm selling my car?
If you're selling your car and not replacing it you should cancel your cover immediately as you no longer own the car and there's no point paying for cover you don't need.

If you're going to replace your old car most insurers will update the policy to cover the new vehicle, meaning you don't have to cancel and take out a new policy.

You will be charged for changing the policy, and you may have to pay more for cover to reflect any added risk associated with your new car, but this could still work out a lot cheaper than cancelling and taking out a new policy, so do your sums before you decide.


But as they are taking pi** reimbursing you with anything i would probably contact financial-ombudsman.org.uk/con…htm


Maybe mention that to the next adviser you speak to, and like fanpages said they may pull their finger out their a** and refund you!!!
Tiddly_fiddly1 h, 18 m ago

Little_green i found this on money supermarket - from experience i don't …Little_green i found this on money supermarket - from experience i don't think you are likely to get refunded for the remaining 6 months. Hope you get it resolved asap... i can imagine it is a nightmare as i have been through it. But luckily my insurance company wasn't RACWill I get a refund if I cancel my insurance?You might expect to get something close to a pro rata refund of any premiums, less any cancellation charge. So if you’ve got six months left on your policy, you’d think you’d be due six months-worth of premiums back.You’d probably be disappointed. Practice varies, but insurers usually don’t refund the last two months of premiums, so if you are close to renewal, it’s probably worth seeing out the remaining months before you switch to a better deal elsewhere.And, provided you've not made any claims, hanging on to your policy until it ends will also ensure you get the no claims bonus for that year.If you cancel half-way through the year, you’ll probably only get four months of premiums back. This is all because insurers fund their admin costs with the early months’ premiums.Can I cancel if I'm selling my car?If you're selling your car and not replacing it you should cancel your cover immediately as you no longer own the car and there's no point paying for cover you don't need.If you're going to replace your old car most insurers will update the policy to cover the new vehicle, meaning you don't have to cancel and take out a new policy.You will be charged for changing the policy, and you may have to pay more for cover to reflect any added risk associated with your new car, but this could still work out a lot cheaper than cancelling and taking out a new policy, so do your sums before you decide.But as they are taking pi** reimbursing you with anything i would probably contact http://www.financial-ombudsman.org.uk/consumer/complaints.htmMaybe mention that to the next adviser you speak to, and like fanpages said they may pull their finger out their a** and refund you!!!


Rac have confirmed that I am due money back that back to me that is not the debate, the issue is the money has not arrived back to me.
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