Not upheld: premature premium collection and service accessibility complaint against One Call Insurance Services Limited

Decision detail

Summary

Mr S complained that One Call prematurely collected a renewal premium for home buildings insurance he did not want, taken on 5 September 2024 before the 7 September expiry date. He claimed difficulty contacting One Call to cancel and said the refund was not returned as promised. One Call had already refunded the £301.42 premium and paid £150 compensation, but Mr S sought additional interest. The ombudsman found One Call had clearly communicated the auto-renewal terms and payment timing in advance notices, and that the payment was taken five days before renewal as stated. Although Mr S contacted One Call on 6 September 2024, he refused to answer security questions required for cancellation. The ombudsman upheld One Call's position that security verification was reasonable and found the existing compensation adequate, declining to award additional interest.

The Ombudsman's reasoning

The ombudsman found that One Call acted fairly in renewing the policy and taking payment as stated in the renewal notice. The payment was taken five days before the renewal date as clearly communicated. While One Call acknowledged it should have made further contact, the ombudsman considered it reasonable for the business to require security question verification before cancelling the policy. The ombudsman noted that Mr S could have reasonably answered the security questions, which would likely have resulted in immediate cancellation and refund on 6 September 2024. The £150 compensation already paid was considered sufficient and more than covered the interest that would have accrued on the refunded premium.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website