Upheld: Account administration errors complaint against Wakam UK Limited
Financial Ombudsman decision DRN-6423767 of 2026-07-03T00:00:00+00:00. Account administration errors complaint against Wakam UK Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6423767 |
|---|---|
| Decision date | 2026-07-03T00:00:00+00:00 |
| Firm | Wakam UK Limited |
| Product | Other regulated product |
| Claim type | Account administration errors |
| Outcome | Upheld |
| Remedy | Refund overpaid premiums of £50 per month from February 2021 to April 2025, plus 8% simple interest per annum from February 2021 to April 2025, with appropriate tax documentation if required |
Summary
Miss C complained that Wakam UK Limited refused to refund overpaid premiums dating back to policy inception when it was discovered her dog was a crossbreed rather than a pedigree. Miss C's dog was incorrectly listed as pedigree on the 2021 application form, resulting in a £50 monthly premium overpayment. When the breed was corrected in April 2025, the premium decreased. Wakam only offered to refund from January 2025 onwards. The ombudsman upheld the complaint, finding that the non-disclosure caused Miss C detriment rather than benefiting Wakam, and that fairness required refunding all overpaid premiums from February 2021 with interest, as Wakam could not explain the premium mechanism or justify retaining the overpayment.
The Ombudsman's reasoning
The ombudsman found that while Miss C likely made a mistake in not selecting 'crossbreed' on the application form, this non-disclosure actually caused her detriment rather than benefiting her, as her premium was higher than it should have been. Under CIDRA 2012, insurers only have remedies when non-disclosure causes them detriment. Since the premium reduced upon correction, Wakam received an overpayment. Wakam could not explain the premium mechanism or confirm when the reduction should have applied, so the benefit of doubt must favour Miss C as the consumer. Refunding the overpayment is not rewarding misrepresentation but righting a wrong.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Wakam UK Limited, all decisions | 18 | 67% |
| Account administration errors, all decisions | 26,574 | 25% |
| Other regulated product, all decisions | 51,462 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website