Not upheld: Account administration errors complaint against Collingwood Insurance Services (U.K.) Limited

Decision detail

Summary

Mr H complained about charges levied by insurance intermediary CISL when he cancelled his learner driver policy after passing his driving test in November 2025. He claimed the £40 cancellation fee and £75 administration fee were excessive and hidden, and that he lacked clarity about the charges at point of sale. CISL maintained that all fees were clearly disclosed in the online sales journey, payment breakdown, and terms of business. The ombudsman found that CISL provided adequate disclosure of all fees before purchase and that the fees were fair and proportionate to the work involved, consistent with industry practice. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that CISL provided clear disclosure of all fees at the point of sale through the online journey, payment breakdown, and terms of business. Although there was minor ambiguity in one version of the terms regarding the monthly fee description, this was resolved by the detailed payment breakdown shown before purchase. The ombudsman considered the fees themselves to be fair and proportionate to the work involved in administering the policy and processing the cancellation, and consistent with charges by other intermediaries. The requirement to cancel upon passing the test was a clear policy feature disclosed at outset.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website