Budget Insurance Cancellation Fee

[pewe393]

Budget Insurance almost doubled my insurance premium after an automatic yearly renewal on 01/10/10, I realised this after looking at my bank statement. I immediately called them on 12/11/10 to complain and to let them know I intended to cancel my insurance if they did not improve my premium. They apologised and informed me they could not improve it and thanked me for the +3 years I have spent with them. I then informed them I was going to arrange my insurance with another company and I would call them back later that day to cancel.

 

After the call I contacted another insurance company and re-arranged my insurance, I paid the total of the premium upfront as this worked out £400 cheaper than Budget for the same insurance. Once all was finalised I then called back Budget to cancel my previous insurance. When I spoke to Budget again they informed me that if I cancelled I would have to pay them a £352 early cancellation fee! I was shocked to discover this and informed them I had spoke to one of their colleagues beforehand and they did not mention any cancellation fees. They then told me they are not obliged to inform me of the fees as they are in my terms and conditions and I should know about them.

 

 

Please can you give me some help and advice in how to deal with this matter. I do not mind paying a reasonable administration fee but the amount they are charging is way too excessive, unreasonable and in my opinion verging very closely to a criminal offence.

 

(please note I have a clean driving license, 10 years no claims and have not have an accident. I have contacted Watchdog today and I intend to contact the Financial Ombudsman if necessary)

[unclebulgaria67]

Did you not get the renewal notice confirming the premium and that auto-renewal would take place?

 

If you did get the renewal, you would have needed to phone them to cancel before the renewal date to avoid cancellation charges. The cancellation charges (Budgets are some of the highest) are noted in the policies terms and conditions.

 

If you did not receive the renewal documents, you have legitimate reasons to make a complaint to Budget and to ask them in the circumstances to waive the cancellation charges, only charging a pro-rata premium for the days cover was provided. Send them a copy of the new policy certificate so they can see the new cover you have arranged.

 

I am not sure that the FOS would agree with your complaint, if the renewal was received and you did not get around to cancel the policy. They will just agree with Budget. I don't think the FSA or FOS will comment on whether the cancellation terms and conditions of Budget are fair or unfair. So Watchdog or Dominic Littewoods ;'Don't get done, get Dom might be the way forward if they accept your issue.

 

Before you could complain to the FOS, you would need to make the complaint to Budget first and then if they could not resolve after 8 weeks, you could go to the FOS. Budget will have to put collecting this cancellation charge on hold until your complaint is resolved. The FOS are taking atleast 6 months to deal with complaints and if you went to them Budget would be charged a case fee of £500 and it would cost you nothing. So if you end up at the FOS, it would be expensive for Budget and they would not be able to start collecting from you for many months while the complaint is ongoing.

[pewe393]

Did you not get the renewal notice confirming the premium and that auto-renewal would take place?

 

Hi thx for the quick reply, I have not received the letter and I have informed them of this but their words to me were "you are lying" so I may be better off making a formal written complaint rather than talking to the idiots they employ there

[unclebulgaria67]

Did you not get the renewal notice confirming the premium and that auto-renewal would take place?

 

Hi thx for the quick reply, I have not received the letter and I have informed them of this but their words to me were "you are lying" so I may be better off making a formal written complaint rather than talking to the idiots they employ there

 

If they told you that you were lying. Send the complaint to their Chief Executive with the date and time of the phone call. That member of staff will be lucky to stay in their job. I have seen staff sacked for similar.

[snowy101]

I have had a very similar experience of late, although i did not receive my new policy. I have a thread here titled " 1st quote took my money".

I took my case to the FOS & at present its ongoing, this is there number 0800 0 234 567.