I received an email from an insurance broker claiming it could find me good home and contents insurance. I phoned in my credit card details and signed various forms that were emailed.
Three days later – and three days before the policy was due to start – I found a cheaper deal, so I called to cancel. I was told that I could do so only if I paid £60 in broker’s cancellation fees. It seems these fees are not uncommon, although £60 is at the upper end of the scale.
Is this reasonable? TA, Petersfield, Hampshire
It certainly doesn’t sound it, especially as insurance companies are obliged to allow you 14 days to change your mind after signing the contract.
However, according to the Financial Ombudsman Service, it is reasonable for brokers and insurers to charge a fee to cover any costs in setting the policy up. This must be a genuine reflection of the work involved.
“Unticking a box or one phone call is not going to justify £60,” says a spokesperson. You say you returned about six signed forms and a copy of a utility bill. Someone will have had to input that data, but it doesn’t sound like £60-worth of toil, in which case the FOS suggests you get in touch to see if it can help.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.
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