2023-09-01 07:38:05
(Alliance News) – Direct Line Insurance Group PLC has charged existing home and car insurance customers higher renewal fees than if they had been new customers, the UK financial regulator said on Friday, and it will provide a repair costing around £30 million.
The Financial Conduct Authority (FCA) said Direct Line would conduct a voluntary review of its past business to “identify any instances where a customer has been overcharged and offer appropriate redress” when the pricing rules of the FCA have been violated.
FCA said customers don’t need to do anything as they will be contacted by Direct Line.
Direct Line confirmed the FCA’s announcement on Friday, saying the review relates to the regulation of pricing practices put in place by the UK financial services regulator in early 2022.
“An error in the implementation of these rules caused our calculation of the equivalent new business price for certain customers to be inconsistent with the regulations,” Direct Line said.
“As a result, these customers paid a higher renewal price than they should have.
The FTSE 250 estimates that repair payments to customers will cost it around £30million, half of which has been provisioned in its 2022 results.
Direct Line said Friday’s announcement was unrelated to one it made at the end of June regarding a review of past auto claims activity.
Direct Line shares were down 1.6% at 159.60 pence early Friday in London.
By Tom Waite, Editor of Alliance News
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