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Is it acceptable for the AA not to refund an unused breakdown subscription?

How acceptable is it for the AA to refuse to refund an unused breakdown subscription? Our AA breakdown subscription was 'suspended' by the AA in 2014, on purchasing a newer car which had the manufacturers' breakdown insurance. Since that expired, our bank now offers us breakdown insurance. I asked the AA last month to refund the 'suspended' amount and they refused, until I pressed them most strongly on the unreasonableness of holding on to our money indefinitely.

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You have a limited amount of time to act via the courts (six years) but you should have ask for a refund straight away. If you made any payment via a credit card, contact them, and they should be able to assist. You are covered under Consumer Credit act 1984 and distance selling regulations, these are now under the Consumer Act 2015. AA are regulated by the FCA, so raise a complaint with the FOS ombudsman.
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