Not upheld: Other regulated complaint complaint against Right Choice Insurance Brokers Ltd

Decision detail

Summary

Mr S complained that AutoAid automatically renewed his breakdown assistance policy despite his request for cancellation in 2023. AutoAid's complaints handler failed to properly understand that the complaint related to two years of renewals, allowing the policy to continue renewing into 2024 and 2025. AutoAid subsequently offered to refund premiums from 2023-24 with 8% simple interest and £50 compensation. The ombudsman found this offer fair, noting that Mr S was adequately informed about the automatic renewal terms and annual premiums, and that while AutoAid's service could have been better, the remedy offered was proportionate.

The Ombudsman's reasoning

The ombudsman found that Mr S was fairly told about the automatic renewal in the original policy document and was informed of renewal premiums each year via email. While AutoAid made a clear error in 2023 by failing to properly understand and act on Mr S's complaint, resulting in continued renewals through 2024 and 2025, the firm's offer to refund the disputed premiums with interest and compensation was proportionate and fair. The ombudsman clarified that the FOS is not AutoAid's regulator and cannot mandate changes to business processes, but can only assess whether the firm dealt with the customer fairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website