Not upheld: Account administration errors complaint against Somerset Bridge Insurance Services Limited trading as Go Skippy

Decision detail

Summary

Miss B complained that SBISL claimed she owed £187.53 following cancellation of her motor insurance policy after scrapping her car. SBISL waived the £75 cancellation fee, leaving £112.53 outstanding, which Miss B disputed, claiming SBISL had not investigated properly and continued to pursue an incorrect debt. The ombudsman found that the outstanding balance was correctly calculated under the terms Miss B had agreed to, comprising pro-rata premium, arrangement fees, and interest, and that these charges were clearly disclosed in the Terms of Business Agreement. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that SBISL's decision to waive the cancellation fee was fair and that the outstanding balance of £112.53 was correctly calculated despite an error in the explanation of how it was derived. The Terms of Business Agreement clearly set out the deductions applicable upon cancellation, including pro-rata premium, arrangement fees, and interest. Being up to date with monthly payments did not mean Miss B owed nothing, as additional fees and costs were legitimately due under the agreed terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website