Upheld: unfair charges and poor complaint handling complaint against Domestic & General Insurance Plc

Decision detail

Summary

Mr C complained that D&G incorrectly linked his bank details to another customer's appliance warranty policy, resulting in erroneous direct debit payments. Although D&G refunded the initial payment and paid £50 compensation, further payments were taken in April and May 2025. D&G argued the additional payments occurred because Mr C failed to cancel the direct debit mandate himself. The ombudsman upheld the complaint, finding that D&G's responsibility for the situation was not removed by advising Mr C to cancel the mandate, and that the recurring issue caused additional distress and inconvenience. A total award of £100 compensation (£50 additional to the £50 already paid) was ordered as fair and reasonable.

The Ombudsman's reasoning

While D&G's advice to Mr C to cancel the direct debit was not unreasonable in itself, it did not remove D&G's responsibility for the situation, as the direct debit existed due to their error. The fact that the issue had occurred previously and then continued, requiring time to fully resolve and evidence from Mr C before refunds were processed, caused additional distress and inconvenience beyond the initial error. The £50 compensation already paid did not fairly reflect the overall impact.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website