Not upheld: Service failures generally complaint against Collingwood Insurance Services (U.K.) Limited

Decision detail

Summary

Mr M complained to CISL about a motor insurance policy it sold him after his motoring conviction became spent and he requested a premium recalculation. When the insurer declined to recalculate mid-term, Mr M cancelled the policy. CISL retained a £68.50 processing fee and charged a £30 cancellation fee, which Mr M disputed. Mr M also alleged discrimination and data protection breaches. The ombudsman found that both fees were clearly disclosed in CISL's terms of business which Mr M acknowledged before purchase, the processing fee was non-refundable, and CISL as a broker had no responsibility for the insurer's underwriting decisions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that CISL, as a broker, is not responsible for the insurer's underwriting decisions or premium recalculation policies. The fees charged were clearly disclosed in CISL's terms of business which Mr M acknowledged before purchase. The processing fee was explicitly stated as non-refundable, making it reasonable for CISL to retain it upon cancellation. The policy was sold on a non-advised basis with clear, fair and non-misleading information. Regarding allegations of discrimination and data protection breaches, the ombudsman noted these are matters for the courts and Information Commissioner respectively, and found no evidence of unfair treatment by CISL.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website