Charged £800 for changing address on insurance - is a refund likely? | Ask Honest John

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Charged £800 for changing address on insurance - is a refund likely?

My daughter recently notified her insurer, Hastings Direct, of her change of address for the remaining three months of her insurance policy. She then received a confirmation message from Hastings, followed by them taking over £800 from her bank account. We have since obtained alternative quotes for an alternative policy and it appears the change in postcode does attract a premium of around £800, but for a 12 month policy. It looks like my daughter has been overcharged to the tune of £600, which so far Hastings have refused to refund. Do you think she has any chance of getting a refund?

Asked on 23 August 2017 by Eugene Doherty

Answered by Honest John

Tell her to contact her insurer and advise them that they have charged her for a 12 month policy rather than an amendment, as such they need to reimburse her in full. If they do not, she then needs to tell them she is cancelling the contract, and that under distance selling regulations she has a minimum 14 day cooling off period (think it is 21 on insurance) and they need to reimburse her in full. She then need's to raise a complaint with them and also contact the FOS (Financial Ombudsman Service). Phone them first (very important you do this, as they will give a reference number and then contact the insurer). Once the insurer has been contacted they will be charged £500 by the FOS if they do not resolve the complaint. The FOS will advise they will not act until a final response letter has been sent, but for the insurer, just knowing they are "aware" is enough to get them moving.

Tags: legal and consumer advice insurance refund insurance premiums ombudsman fos

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