Not upheld: unfair cancellation charges and alleged mis-selling complaint against Right Choice Insurance Brokers Limited (RCIB)

Decision detail

Summary

Mr B purchased a motor breakdown insurance policy online through RCIB for his car aged over 16 years and cancelled it shortly after, claiming he was unaware of the £25 call-out charge for vehicles aged 10+ years. RCIB refunded the premium less £17.64 in cancellation and arrangement fees. Mr B complained that the charges were unfair and that he had been rushed through the online checkout without properly reviewing the policy details. The ombudsman found that the £25 charge was clearly disclosed multiple times in the online sales journey, IPID, and policy link prior to purchase, and that Mr B had agreed to the cancellation fee terms before buying. The ombudsman concluded the charges were proportionate, fair, and in line with industry standards, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that although Mr B claimed he was unaware of the £25 call-out charge, the evidence demonstrated it was clearly disclosed multiple times throughout the online sales journey prior to purchase, including on the initial webpage, the policy link, and the IPID. The ombudsman was satisfied the policy was not mis-sold and that Mr B had the opportunity to review information at his own pace before completing the purchase. The cancellation charges of £17.64 were found to be proportionate to the services provided, in line with the agreed terms and conditions, and comparable to fees charged by other insurers and brokers. The ombudsman noted that while the FOS cannot dictate what businesses charge, FCA rules require charges to be proportionate and disclosed to consumers, both of which were satisfied here.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website