Not upheld: Account administration errors complaint against DEVITT INSURANCE SERVICES LIMITED
Financial Ombudsman decision DRN-5446688 of 2025-08-01T00:00:00+00:00. Account administration errors complaint against DEVITT INSURANCE SERVICES LIMITED. Outcome: Not upheld.
Decision detail
| Reference | DRN-5446688 |
|---|---|
| Decision date | 2025-08-01T00:00:00+00:00 |
| Firm | DEVITT INSURANCE SERVICES LIMITED |
| Product | Other regulated product |
| Claim type | Account administration errors |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman recommended that Devitt maintain its offer to reduce the outstanding balance by 50% (from £210.26 to £105.13) while the complaint remains with the FOS, leaving it to Mr B to decide whether to accept. |
Summary
Mr B complained about cancellation charges applied by Devitt Insurance Services Limited when he cancelled his motorcycle insurance policy after selling his motorcycle. Mr B believed the £55 cancellation charge and the calculation of his outstanding balance of £210.26 were excessive. The ombudsman found that the £55 cancellation charge was fair and reasonable, consistent with industry standards and properly disclosed in Devitt's terms of business. The ombudsman noted that Devitt had already offered a 50% reduction on the outstanding balance and upheld the firm's right to require settlement. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman determined that the £55 cancellation charge was fair and reasonable, consistent with other cancellation charges reviewed by the FOS. While the insurer (not Devitt) was responsible for setting the annual premium, Devitt as broker was entitled to apply its stated cancellation charge. The ombudsman noted that Devitt had already offered a 50% reduction on the outstanding balance, which should remain available to Mr B.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| DEVITT INSURANCE SERVICES LIMITED, all decisions | 3 | 0% |
| Account administration errors, all decisions | 26,544 | 25% |
| Other regulated product, all decisions | 47,449 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website