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Thread: Money stolen: RAC refuse to refund after two week cooling off period

  1. #1
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    Thumbs down Money stolen: RAC refuse to refund after two week cooling off period

    I'm two months into a contract and can't reduce or cancel my breakdown contract because of terms that state no refunds after given after the two week cooling off period. I no longer require the breakdown services I originally signed up for due to a change in my circumstances and now I'm stuck with paying for them for the full 12 months. I feel as though the RAC have effectively stolen money from me.

    I my opinion this is a wholly unfair clause in the contract and will not be using the RAC's cover again as a result. I would encourage other people to only take out an RAC breakdown policy if they are absolutely certain that their breakdown requirements will not change during the year, if they do; there is no chance of getting a pro-rata refund for the remaining unused period of cover after the 14 day cooling off period has elapsed.

  2. #2
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    Not stolen....

    Another reminder that we should carefully check the T's & C's before we enter into a contract. When you opt for monthly payments you are not starting a monthly contract - you are starting an annual contract and paying in instalments. I believe that Insurance is exactly the same - you get the statutory 14 days and that's it.

  3. #3
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    It is a long shot but try the FSA (Google them). Have you written to the RAC explaining your reason for cancelation? The FSA may ask you to do this first.

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    Quote Originally Posted by Santa View Post
    Not stolen....

    Another reminder that we should carefully check the T's & C's before we enter into a contract. When you opt for monthly payments you are not starting a monthly contract - you are starting an annual contract and paying in instalments. I believe that Insurance is exactly the same - you get the statutory 14 days and that's it.
    Agreed that this condition is in the T&C's but that doesn't mean that it's a fair contract. When I took out the policy I believed that I would need the services for a year, however my circumstances have changed and as a result I am not entitled to a refund for unused services going forwards. Most insurance policies allow you to cancel or amend your policy and receive a pro-rata refund for the unused portion of the policy - that's all I'm asking for here. I no longer require the services, the RAC would be under no obligation to provide them if I cancelled the policy, so why should I have to pay for services no longer required or provided?

  5. #5
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    Quote Originally Posted by wagolynn View Post
    It is a long shot but try the FSA (Google them). Have you written to the RAC explaining your reason for cancelation? The FSA may ask you to do this first.
    Thanks for the advice, I am currently pursuing this through the FSA

  6. #6
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    Quote Originally Posted by nijk31 View Post
    I'm two months into a contract and can't reduce or cancel my breakdown contract because of terms that state no refunds after given after the two week cooling off period. I no longer require the breakdown services I originally signed up for due to a change in my circumstances and now I'm stuck with paying for them for the full 12 months. I feel as though the RAC have effectively stolen money from me.

    I my opinion this is a wholly unfair clause in the contract and will not be using the RAC's cover again as a result. I would encourage other people to only take out an RAC breakdown policy if they are absolutely certain that their breakdown requirements will not change during the year, if they do; there is no chance of getting a pro-rata refund for the remaining unused period of cover after the 14 day cooling off period has elapsed.
    You are having a laugh,right?

    You say the RAC have effectively stolen your money,get real.

    No they have not.

    You signed up for a contract of 12 months.

    Just like a mobile phone,just like a house phone etc etc etc.

    It is not their fault you no longer need or want it.


    Sorry if i sound unfair but it drives me mad.

  7. #7
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    Quote "Agreed that this condition is in the T&C's"

    That`s what you would of read ,if you had read the T&C`s before you signed the contract..

    Now, it was being charged thousands of s, for paying off a mortgage early, that's what you call being ripped off?

  8. #8
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    Quote Originally Posted by Loony View Post
    You are having a laugh,right?

    You say the RAC have effectively stolen your money,get real.

    No they have not.

    You signed up for a contract of 12 months.

    Just like a mobile phone,just like a house phone etc etc etc.

    It is not their fault you no longer need or want it.


    Sorry if i sound unfair but it drives me mad.
    I'm definitely not having a laugh, I appreciate your point of view but don't agree. Neither does the FSA, I found this on the financial ombudsman website:

    http://www.financial-ombudsman.org.u.../insurance.htm

    However, if the policyholder cancels, then the firm retains all the premiums already paid, or refunds a smaller proportion than if it had itself cancelled the policy.

    The FSA statement specifically refers to terms that charge policyholders a disproportionately large sum if they do not fulfil their obligations under a contract, or if they cancel it. We share the view that giving consumers the right to cancel and then penalising them financially for exercising that right is likely to be unenforceable in law, as well as unfair and unreasonable.
    It might be worth reading the first Case Study near the bottom of that page for clarification.

    I don't believe or subscribe to the argument that 'because we as consumers receive poor or unfair terms, we should accept it'. I'd suggest that the examples you give are also unfair contract terms and should also be under question.

  9. #9
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    Quote Originally Posted by smudger View Post
    Quote "Agreed that this condition is in the T&C's"

    That`s what you would of read ,if you had read the T&C`s before you signed the contract..

    Now, it was being charged thousands of s, for paying off a mortgage early, that's what you call being ripped off?
    I did read the T&C's but as I've stated in earlier posts I expected to require the service for the full period at the time of taking out the policy. Please refer to my previous post which quotes FSA guidelines on similar matters. The issue I have is that I am being charged a disproportionate amount for the cancellation of the policy.

    The example you give of early mortgage repayment is not the same and I'm sure you understand the difference. Loony's examples are much better, but I'll repeat my take on this:

    Just because other companies set out unfair terms for the consumer does not make them right or acceptable
    Last edited by nijk31; 16-12-12 at 20:27.

  10. #10
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    I will put is this way then, I signed a 24 month contract with a mobile phone company 11 months ago, now I find I can get an even better deal, for half the price I'm paying now with a different company,?

    Upon checking with my present phone company, I'm told they are holding me to the original deal,......but, if I pay an extra 15 a month, they will give the latest I-Phone.

    Now that is basically taking the p**s

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