19 Pounds for an hour?

R

richardfifth

Guest
I set up an insurance policy with Elephant.co.uk. I went on to find a better quote and rang elephant.co.uk back to cancel it. I did all this within an hour. They keep contacting me saying I owe them 19 pounds setup cost and will charge me a firther 20 pounds if I do not pay in 3 days.

How can they justify such an amount and should I pay it?
 
If the set-up charge was detailed in the terms & conditions you agreed to when you set up the policy, then you probably have no option but to pay it. Equally in the unlikely scenario that an insurance claim arose on foot of an incident during the short time the policy was open, then they would have to process it & pay out if required.
 
Does he not have 14 days (under Irish law) to cancel it free of charge, as it was purchased over the internet?

Towger.
 
Well I suppose that is a fair point but surely a setup fee of 19 pounds, much like bank charges, is unlawful based on the amount of time and effort it takes. As it happens I didn't ask for the car to be covered until the following Monday meaning my car was never insured.
 
Towger, this is true and most companies do this. Elephant however, refund the deposit that you pay but take 19 pounds as 'setup' fee
 
richardfifth said:
Well I suppose that is a fair point but surely a setup fee of 19 pounds, much like bank charges, is unlawful based on the amount of time and effort it takes.
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I don't think so as I don't think there is any legislation to control either insurance premiums or admin charges. If you booked a flight with Ryanair for example they don't seem to have any problem with charging you a stiff admin fee to cancel or change your booking.

If you paid by credit card, it might be worth your while checking the position with your card issuer.
 
I haven't paid it yet. If it was a flight then you would understand the charge because the seat would have been sellable to someone else.

I certainly haven't signed anything so how can I have agreed to terms and conditions?
 
EU Distance Sellling regulations allow a full refund within a time limit (usually 14 days, but it may be higher for insurance). Travel is explicitly excluded. However, insurance is included -- even Ryanair will refund travel insurance premiums, according to their policy document. Charging a fee to do so is certainly outside the spirit of the EU regs, if not the letter.

As regards not signing anything, that's not necessary for a contract to be in place.
 
If you live here in Ireland, I cannot see you being extradited for the £19. Don't pay.
 
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