Questions of Cash: Budget failed to repay my premium for off-the-road car
Saturday 21 July 2012
Q. I insured my son's car with Budget Insurance in April 2012. The policy was in his name, but I paid the premiums. On 25 April I received policy renewal documents from Budget. I rang Budget to inform them that I did not wish to renew the policy as the car was off the road and about to be sold. The call centre operative asked me when the car had been taken off the road and if there was a SORN [Statutory Off Road Notification]. I said there was.
The operative then suggested it may be possible to get a premium refund dating back to the commencement of the SORN. He checked and confirmed that premiums would be refunded if I supplied a copy of the SORN. Budget would also waive the policy cancellation fee and any premiums shown as due from the renewal date of 20 April. On 27 April I received a letter from Budget saying that it had attempted to collect a payment of £3146.34 for the renewal premium from my bank account, but my bank had declined the request. I wrote the same day to Budget, with a copy of the SORN and confirming my conversation over the phone. On 5 May I returned, as requested by Budget, the certificate of insurance.
As I didn't hear anything more from the company I phoned Budget's customer services on 26 May. The operative I spoke to this time said she could not help me and I needed to speak with a manager – but none was available. I was promised that someone would ring me on 28 May and, at my request, I was given the name of that person. No one phoned on 28 May, nor on 29, 30 or 31 May – but each day I phoned asking to speak to that manager. On every occasion I was told that he was not available, but would phone me the next day. I paid Budget £2,587.97 on 26 April 2011 and by my calculation, the insurance company now owes me a premium refund of £1,637.86. PY, Hertfordshire.
A. Budget apologises for the confusion and for the wrong information you were given. A spokeswoman said: "We have identified that our advisor incorrectly told [the reader] that we would be able to backdate the cancellation of his son's policy to the date of the SORN declaration. Whilst the vehicle was declared as 'off the road' the insurer would have still been liable for any claim for theft or fire damage to the vehicle. It was not possible to backdate the cancellation of the previous policy, as the full annual cover had been provided. We have been in contact with [the reader] and are pleased that this issue has now been resolved to his satisfaction. We accept that the standard of service given and the communication provided, on this occasion, fell below our expected levels of customer service. By way of apology, we have refunded [the reader's] premium from the time the vehicle was registered as SORN and, in addition, offered a further £100 compensation." Consequently you will receive a payment from Budget of £1,737.86.
Q. Early this year I booked Flybe flights from Exeter to Dublin for my wife and myself to fly on 30 August. After purchasing the flights I booked a 10-day walking holiday, including accommodation and transfers, starting from Dublin early on 31 August. Flybe has now sent me an email stating – without either reason or apology – that the flight has been cancelled. I have been offered a refund or alternative flights one day later or two days earlier. Our only realistic option is to fly earlier and book two extra days' accommodation in Dublin. Flybe has rejected my request for compensation towards my extra costs of around £200. This seems very hard. Is the airline allowed to do this? NB, Somerset.
A. Flybe directed us to its website, which specifies that where a flight is cancelled more than 14 days in advance, a passenger is entitled to a refund of the ticket price, or the use of an alternative flight to the destination as soon as possible afterwards. Alternatively they can choose an alternative flight to their final destination at a later date which suits them. The airline adds that it is not required to provide any financial compensation to passengers affected provided they have been given more than 14 days' notice. We have compared this to current European Union legislation and it seems to us that Flybe's rules are entirely compliant with its legal obligations.
Q. I have purchased a franchise. The franchisor promised to provide in-depth support for me in setting up my business. I haven't signed the franchise agreement yet, but I have paid out more than £10,000. After I paid the money over, all the promised support dried up. The training was completely disorganised and of absolutely no value. I was given a personal computer as part of the deal, but instead of being the promised new model it was old and had been used before. I understood from the prospectus that the franchisor was a member of the British Franchise Association – but it is not. Promised stationery has not arrived. The website is of very poor quality. I have spoken now to other franchisees, who are earning less than a third of the income they were told they could expect. The franchisor rejects my complaints. What can I do? It would cost me a fortune to go to a solicitor. AN, by email.
A. Upon discussing the problems with you, it emerged that you have signed an agreement not to talk to anyone regarding your franchise contract. We are not in a position to determine if this is legally enforceable. In these circumstances, we suggest that you pursue a legal route. At present, the threshold for legal action in the Small Claims Court is just £5,000, so that is not appropriate for you. You could seek free legal advice from Citizens' Advice. There is also a law centre – which specialises in providing legal support to people who cannot afford to use a solicitor – near to where you live.
Independent Partners; request a free guide on NISAs from Hargreaves Lansdown
Five Questions: Changes to car tax discs
A student's guide to financial survival: You don't have to drown in debt at university
How to save money: UK is crashing down the European league table for putting money away
Two million first-time buyers are locked out
Mark Dampier: When even safety first is a risk, go for income and capital growth
- 1 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Oil tanker with $100 million cargo goes missing off Texas coast
- 4 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 5 Medina: Saudis take a bulldozer to Islam's history
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...
£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
Day In a Page
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village
A secluded seven-bedroom detached house with large private garden, £490,000
A three-bedroom cottage overlooking Sarratt village green with open fires and solid oak floors
A three-bedroom maisonette flat in a Grade I-listed, Georgian townhouse in a sought-after location
A one-bedroom apartment located within a private gated development, north of Turnham Green
Look forward to a brighter future at two-bedroom Sunny Cottages, ideal for Londoners looking to downsize
A three-bedroom red-brick cottage with outbuildings and pretty gardens, £200,000
This three-bedroom flat within a former textile factory spans the corner of the fourth floor and has a balcony