Upheld: Service failures generally complaint against AWP P&C S.A.

Decision detail

Summary

Mr K complained that AWP P&C S.A. cancelled his motor warranty due to a system glitch when changing direct debit providers and refused to reinstate it permanently. AWP acknowledged the error and offered two months of reinstatement plus compensation, but claimed Mr K was ineligible for the replacement product. The ombudsman upheld the complaint, finding that AWP failed to provide evidence supporting their ineligibility claim and that their offer did not adequately remedy the unfair cancellation. AWP was directed to reinstate the policy on original terms, pay £500 compensation, and review any mechanical issues since cancellation.

The Ombudsman's reasoning

The ombudsman found that while AWP's two-month reinstatement offer was a gesture, it did not adequately put Mr K back in the same position as before the unfair cancellation. Critically, AWP failed to provide evidence supporting their claim that Mr K was ineligible for continued coverage under the replacement product. The template letter provided was for van customers, which was irrelevant to Mr K's circumstances. Without evidence to justify the permanent cancellation, the ombudsman determined that AWP should reinstate the policy on the original terms and compensate Mr K for the distress and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website