Not upheld: General financial advice complaint against Marshmallow Financial Services Ltd

Decision detail

Summary

Miss C complained about Marshmallow Financial Services Ltd after accepting and paying for a car insurance quote in April 2024, only to be required to complete a new quote with a higher premium, and subsequently charged a £30 cancellation fee when she cancelled. The ombudsman found that Marshmallow had legitimate grounds to require a new quote after discovering the first quote omitted details of a 2023 accident, and that the higher premium resulted from accurate information and real-time pricing rather than firm error. The £30 cancellation fee was found to be proportionate and applied in accordance with policy terms. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Marshmallow had legitimate grounds to require a new quote after discovering the first quote was based on incomplete information (missing accident details). The higher premium in the second quote was due to the inclusion of accurate accident information and real-time pricing changes, not a system failing. The £30 cancellation fee was applied in accordance with the policy terms, was proportionate to the costs of selling and setting up the policy, and most brokers charge similar fees. Although Miss C was not explicitly told about the cancellation fee, the ombudsman considered she would not have acted differently had she been informed, given the modest fee amount and industry practice.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website