By Dean Dunham – 5 February 2022
Following Tesco Bank self reporting to the Competition and Markets Authority (CMA), the regulator has concluded that thousands of Tesco Bank customers are entitled to a refund. Here’s what you need to know:
What’s the issue?
This relates to motor insurance and the issue is that the lender mistakenly informed customers that there no claims bonus protection, which is additional cover drivers can purchase to protect their no claims discount in the event of an accident, would be cheaper (on average by £10) than it really would be. This of course misled customers and enticed some to stay with the lender and of course meant that many simply opted to buy the protection with Tesco Bank rather than shop around for a cheaper deal.
Who’s affected?
The error affected 124,451 customers, who received letters from the lender between April 2020 and September 2021.
What can you do if you’re affected?
The CMA says Tesco Bank must explain the situation to customers, who can choose to keep the policy or get a refund.
The Bank says: “All existing customers who were impacted have been contacted with the option of a refund and the removal of their no claims bonus protection.
“However, the overwhelming majority of customers are choosing to retain their protection. In all cases there was no impact on the cover provided to our customers.”
Around 0.5% of customers who have been contacted have chosen to get a refund.
So, if you’re one of the affected customers you can chose to get a refund or stick with the policy. If you chose the later, it may be worth asking for some form of compensation or other recognition for your loyalty and understanding.
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