Not upheld: payment processing delay and service failure (unclear information provision) complaint against UK Insurance Limited (UKIL)
Financial Ombudsman decision DRN-6182181 of 2026-04-13T00:00:00+00:00. payment processing delay and service failure (unclear information provision) complaint against UK Insurance Limited (UKIL). Outcome: Not upheld.
Decision detail
| Reference | DRN-6182181 |
|---|---|
| Decision date | 2026-04-13T00:00:00+00:00 |
| Firm | UK Insurance Limited (UKIL) |
| Product | credit agreement (fixed-sum loan for insurance premium) |
| Claim type | payment processing delay and service failure (unclear information provision) |
| Outcome | Not upheld |
| Remedy | No additional remedy required. The £50 compensation already offered by UKIL was deemed fair and reasonable. The ombudsman suggested Mr N contact UKIL directly if he had not yet received this amount. |
Summary
Mr N complained that UK Insurance Limited failed to collect a direct debit payment on its scheduled due date of 14 October 2025, with the payment instead being received on 15 October 2025. Mr N was concerned this meant his insurance policy had lapsed, and received conflicting information from UKIL during phone calls. However, the ombudsman found that Mr N's policy remained active throughout and he suffered no actual detriment. Although UKIL made a service error in providing unclear information, this was quickly rectified. The ombudsman upheld UKIL's offer of £50 compensation as fair and reasonable, and did not uphold the complaint.
The Ombudsman's reasoning
The ombudsman found that although the direct debit payment was received one day late, Mr N suffered no actual detriment because his insurance policy remained active throughout. While UKIL made a service error in providing conflicting and unclear information during phone calls, this was quickly corrected. The £50 compensation offered by UKIL was considered fair and reasonable recognition of the distress and inconvenience caused by the service failure.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| UK Insurance Limited (UKIL), all decisions | 1 | 0% |
Source
Read the original decision on the Financial Ombudsman Service website