Upheld: Service failures generally complaint against Clegg Gifford & Co Limited

Decision detail

Summary

N, a company, complained that Clegg Gifford & Co Limited mis-sold it a fleet motor insurance policy by misrepresenting the price as £3,200 per vehicle (when it was actually variable) and confirming cover for certain professionals would be available on referral (when insurer X would not routinely offer such cover). When the pricing error was discovered in February 2024, N was given the opportunity to cancel but chose to proceed. When N first needed to refer a professional in June 2024, the client went elsewhere before terms could be agreed. The ombudsman upheld the complaint, finding Clegg made misrepresentations but noting N had opportunity to cancel and that Clegg's June efforts reasonably reset the professional coverage situation. Compensation of £19,500 for lost customer and £500 for inconvenience was ordered.

The Ombudsman's reasoning

While Clegg made clear misrepresentations regarding both pricing and professional coverage, the error was discovered within weeks and N was given the opportunity to cancel or proceed with corrected information. N chose to proceed. The ombudsman found that N could have shopped around at that point and was not unreasonably forced to continue. Regarding the professionals, Clegg's June 2024 efforts to secure cover with a £10,000 excess reasonably reset the situation to what would have occurred at inception had matters been handled properly. N's subsequent business decision to reject the £10,000 excess cannot be attributed to Clegg. Compensation is awarded for the lost customer in June 2024 and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website