Not upheld: poor customer service, overcharging, missed callbacks, failure to log complaint complaint against UK Insurance Limited trading as Direct Line Car Insurance

Decision detail

Summary

Ms M complained that UK Insurance Limited overcharged her when cancelling her motor insurance policy in October 2025, asking for an additional £17.24 beyond the final payment. She was also promised callbacks on two occasions that did not occur and experienced difficulty logging her complaint. UKI acknowledged poor service, refunded the £34 total overpayment, and paid £80 compensation. Ms M referred the complaint to the FOS, arguing the compensation was insufficient. The ombudsman did not uphold the complaint, finding that UKI's remedial actions were fair and reasonable, and that the £80 compensation was consistent with FOS bands for small administrative errors quickly resolved.

The Ombudsman's reasoning

The ombudsman acknowledged that UKI's poor service caused undue distress and inconvenience to Ms M, including overcharging, missed callbacks, and failure to log a complaint. However, the ombudsman found that UKI's remedial actions—refunding the overpayment and paying £80 compensation—were reasonable and fair. The ombudsman noted that the £80 compensation was consistent with FOS bands for small administrative errors or short delays that were quickly resolved, and clarified that the FOS cannot punish or fine firms, only assess fairness and reasonableness of their actions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website