*Tom Graham* I have taken a car insurance policy on 04/04/13 from a broker, premium was £6,000. I paid deposit of £1,489, on the 7/05 direct debit was taken from my account from a finance company of £524 and on 4/6/13 £517. The finance company has not sent me any finance agreement or any direct debt guarantee. on the 24/June I sent a letter to the broker saying please cancel my insurance with effect from 1/7/13 any refund me the deposit after deducting cancellation fees ( I was told over the phone when I took the policy that in case of cancellation 30% of the deposit will be deducted) in July I called them to ask when I will get the refund, they said your insurance still ongoing, so they said you have to put it in writing again, I forwarded a copy of the cancellation notice again by email, and made me sign a document saying that I no longer have the certificate of insurance before they cancelled it, eventually was cancelled on 27/7/13.
Now they are saying because you cancelled you have to pay £3500, total what I paid since I took the policy is £1489 ( deposit )+ 2 direct debts of £1,041, total ( £2,530 ) now they asking me for £970
As they have breached the Verbal agreement of the cancellation fees I have called my bank and told them I am disputing those 2 direct debts, they said we will refund the money within 1 working day and will sort it out with finance company.
Please note I have not signed any agreements or anything, what does the law says? Did I commit any offence?