iandublin2
Registered User
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- 49
We changed our home insurance policy and KBC charged us €30 to update their system. I wrote them a letter so it will be interesting to see what they come back with:
Dear Sir or Madam,
We received a letter dated 16th April 2011 regarding building insurance on
our house at XXXXXXXXXXXXXXXXXX. Our previous policy with Quinn Direct for household insurance expired and we took out a new household insurance policy recently with Quinn Direct. You state in your letter that a €30 "processing fee" has been applied to our mortgage account.
We have a huge problem with this fee:
€30 is one weeks petrol for one of us. Petrol that gets us to work, that same work that allows us to keep our mortgage account up to date at the end of the month.
Yours,
Dear Sir or Madam,
We received a letter dated 16th April 2011 regarding building insurance on
our house at XXXXXXXXXXXXXXXXXX. Our previous policy with Quinn Direct for household insurance expired and we took out a new household insurance policy recently with Quinn Direct. You state in your letter that a €30 "processing fee" has been applied to our mortgage account.
We have a huge problem with this fee:
- Would we be charged this processing fee each time we took out a policy with a separate insurance provider? If so, that means effectively we cannot change our insurance provider without factoring in an additional €30 fee per year. This is effectively a barrier to our ability to shop around.
- Can you tell me what exactly is involved in processing the information? At most it would take 2 minutes to pull up our account on a PC and to update a text field with the new provider.A rate of €30 for 2 minutes work works out at approx €900 euro an hour for your administrative staff.
- Can you explain why we the customer should be charged for fulfilling a condition of the mortgage contract?
- Can you explain why we the customer should be charged when it is in KBC Homeloans' interest that we have buildings insurance on the home?
- Wage costs are a consequence of being in business. Why should we as the customer have to pay a processing fee for a member of your staff to do their job?
€30 is one weeks petrol for one of us. Petrol that gets us to work, that same work that allows us to keep our mortgage account up to date at the end of the month.
Yours,