Not upheld: Account administration errors complaint against Marshmallow Financial Services Ltd

Decision detail

Summary

Mr A complained that Marshmallow Financial Services Limited unfairly required him to pay £967 in outstanding premiums and fees when he cancelled his motor insurance policy following a third-party claim. Although Mr A had not made a claim himself, the policy terms stated he would be liable for remaining payments upon cancellation following any claim. The ombudsman found Marshmallow acted fairly as Mr A was informed of this requirement before proceeding with cancellation, and the £250 compensation already offered was sufficient to address the inconsistent information provided about the exact amount payable.

The Ombudsman's reasoning

The policy terms clearly stated that Mr A would be liable for remaining premium payments upon cancellation following a claim, regardless of whether he or a third party made the claim. Mr A was informed of this requirement before proceeding with cancellation. The inconsistent information about the exact amount payable constitutes limited poor service, which the £250 compensation adequately addresses.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website