Not upheld: Service failures generally complaint against Right Choice Insurance Brokers Ltd

Decision detail

Summary

Mr L complained about fees and charges applied by Ladybird following the cancellation of his car insurance policy in 2024. He argued that Ladybird introduced new terms that were not highlighted, conflicted with the insurer's cancellation process, and were unreasonable. Ladybird maintained that Mr L entered into two separate agreements and that its terms and conditions were clearly presented at the point of sale with a required confirmation checkbox. The ombudsman found that Ladybird sufficiently highlighted its terms and conditions, that Mr L agreed to them, and that the fees and charges were fair and reasonable in accordance with the agreed terms. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Ladybird sufficiently highlighted its terms and conditions at the point of sale through a prominent landing page with a link to the full terms and a checkbox requiring Mr L's confirmation. Mr L entered into two separate agreements—one with Ladybird and one with the insurer—each with their own terms, so there was no conflict between them. The fees and charges were clearly set out in the terms Mr L agreed to, and the ombudsman found them to be fair and reasonable in relation to Ladybird's administrative costs, setup costs, and loss of commission. Mr L's lack of awareness of the terms was not due to Ladybird's failure to make them sufficiently clear.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website