Not upheld: Service failures generally complaint against Collingwood Insurance Services (U.K.) Limited

Decision detail

Summary

Ms B, through her father, complained that CISL mishandled her learner driver motor insurance policy by charging a £40.00 cancellation fee, attempting to collect payment, and sending communications that the father alleged were coercive. Ms B had obtained the policy in March 2024 with a provisional licence and passed her driving test by February 2025. CISL discovered this and invited Ms B to cancel the policy with a 24-hour deadline, after which the insurer cancelled it. The ombudsman found that CISL clearly disclosed the cancellation fee, fairly gave Ms B the opportunity to cancel before the insurer did so, and that its communications and payment collection attempts were not inappropriate or unfair. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that CISL clearly disclosed the £40.00 cancellation fee during the online purchase process and adequately drew Ms B's attention to the terms of business. The policy terms required Ms B to notify the insurer when she passed her driving test, and while cover would cease, the policy itself would not end unless cancelled by Ms B or the insurer. CISL fairly gave Ms B the opportunity to cancel before the insurer cancelled it. The ombudsman found CISL's communications, while unwelcome, were not inappropriate or unfair. Payment collection attempts complied with payment services regulations as they ceased after payment authority was revoked.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website