Not upheld: Other regulated complaint complaint against Utility Warehouse Limited

Decision detail

Summary

Mrs B complained that Utility Warehouse Limited misinformed her about the cost of her home emergency insurance policy, initially stating it would always be £18 per month. When the cost increased in 2024 and again to £39 in 2025, Mrs B requested the price be locked at £18 indefinitely. UWL had already acknowledged its mistake and provided an account credit and £60 compensation. The ombudsman did not uphold the complaint, finding that the remedy for misinformation is to restore the customer to their pre-misinformation position, not to honor the incorrect promise. Since Mrs B was actually better off due to the discount and credits received, the ombudsman found the existing remedies appropriate.

The Ombudsman's reasoning

The ombudsman applied the principle that the remedy for misinformation is to place the customer in the position they would have been in but for the misinformation, not in the position they would have been in if the misinformation had been correct. The ombudsman reasoned that without the misinformation, Mrs B would have been paying market rates for insurance that can change at renewal. Because Mrs B received an initial discount and later a credit due to UWL's mistake, she was actually better off overall than she would have been absent the misinformation. The ombudsman found the combination of the discount, credit, apology, and £60 compensation appropriately recognized the disappointment, frustration, and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website