My bank (Halifax) gave me a competitive contents insurance quote on 22 Jan and assured me they would make all arrangements including cancelling my current policy. I decided to take on their policy. My then current insurer (direct line) wrote to me at end of Jan and asked why I had cancelled my Direct debit and how I was going to pay the remainder of my policy. I contacted my bank firstly and they advised aletter had been sent and not to worry as I wouldnt hear from them again. She faxed me a copy of the letter which was dated January and she had PP-d my signature. On 4th Feb I was worried direct line hadn't wrote to request payment of £26.25 for admin charge for cancelling my policy so I phoned them. They advised they hadn't received any letter to cancel the policy and when I explained all to them they advised they wouldnt accept a third party letter to cancel even if it had arrived. As we were now in February any savings I would have made by changing insurer were lost and I was losing out so I advised Direct I didn't wish to cancel and wanted to keep my policy until it ended this November. They put me through to their accounts were I re-set up my direct debit and offered to pay any outstanding amounts over the phone. I cancelled my policy with halifax the same day. On 9th feb direct line wrote to me to confirm my direct debit had been set up. On 18th feb Direct line wrote to say they had cancelled my policy and I owed them Januarys payment and also admin charges of £26.25 totalling £38.70 which they would take from my direct debit on 26th feb. I phoned and after speaking to 3 different people they accepted that the letter to cancel was from a third party and should not have been accepted and they would waiver the admin charge. They said they couldnt reinstate my policy but would let me take a new one out for another year. I said I didnt really want this as their policy was working out quite expensive and thats why I let my bank give me a quote in the first place. I said I would think about it and contact them I contacted my bank and cancelled the direct debit. I contacted them on 22nd Feb and advised I didnt want to take another policy but wanted to check how much I owed them (less the admin charge)as I had cancelled my direct debit, they said I still owed the admin charge as I wasnt taking on a new policy!! I disputed this and pointed out the letter was third party and acted on AFTER I had spoke with them and advised my bank was writing to cancel and that I did not wish to cancel. They agreed (somewhat rudely) to waiver the fee. When I asked how much I now owed they wouldnt tell me but said they would send me an amended statement. Its now 3rd March - I wrote to confirm everything that has happened on 22nd feb and request amended statement so I could pay by cheque and they havent responded. Does anyone know - can they charge me admin fees for their own administration error???