Where am I going wrong? So, I recently cancelled an insurance policy...

DRL

New member
Joined
Aug 21, 2018
Messages
2
Ok, it's late, I'm tired and I'm rubbish at all things mathematical!

So, I recently cancelled an insurance policy where the annual premium was £2,457.94. It was arranged through a broker, who takes out the whole amount on finance (from a lender) to pay the insurance company and then I pay the lender back in equal monthly instalments. I instructed it to be cancelled (via my broker) from the 18th May, approx 4 months into the 12 monthagreement. At that point the lender requested a clawback of £1637.84 which was the amount still outstanding on the agreement (loan). The refund from the insurance company for the 'unused' part of the 12 month policy came into the broker at £1,602.31 (presumably the small difference reflected some finance costs?? Fair enough). Therefore, as at 18th May I was due a refund of (£1,637.84 - £1602,31) £35.53, although I never actually received it. However, it appears the broker didn't inform the insurance company of the cancellation quickly enough and they took a further monthly premium of £204.82 from my account on 23rd May. Now,instead of refunding this they adjusted the clawback by £204.82 from £1,637.84 to £1,433.02, meaning I was now due a refund of £169.29 (£1,602.31 - £1,433.02).

What I'm struggling to get my head around however is that on 18th May I was due a refund of £35.53, which I didn't receive; they then took another £204.82 from my account and yet I am somehow now only due a refund of £169.29? Surely if I'd received my initial refund of £35.53, and they had subsequently taken a further £204.82 I would have got it all back??

I appreciate there will probably be a very simple answer to this, but thanks for enlightening me!

 
204.82 - 35.53 = 169.29

So they're treating this as YOU previously owed them 35.53.

Tuff bananas :twisted:
 
Thanks Denis, you're absolutely correct. Having slept on it, and rad their email again, I see despite them saying I was owed the £35, it was in fact owed to them.....doh!

All the best.
 
Top