DIRECT LINE insurance customers will be handed £30million in compensation after they were overcharged.
The payout will be handed to home and car policyholders who renewed in the past 18 months and were charged more than new customers.
Direct Line home and car policyholders who renewed in the past 18 months will be handed a payout after being charged more than new customers
That broke rules introduced at the start of 2022.
The Financial Conduct Authority ruled that anyone renewing must not be quoted prices which are higher than a new customer would be given through the same channel.
Direct Line said: “An error in our implementation of these rules meant that our calculation of the equivalent new business price for some customers failed to comply with the regulation.”
It could not confirm how many customers were hit by the error, or how much compensation they would be in line for, though it is likely to be fairly small amounts.
Direct Line said it would contact customers directly, adding: “Work is ongoing to confirm these customers, so we can apologise and refund any money owing to them.”
Sam Richardson, deputy editor of Which? Money, said: “At a time when car and home insurance premiums are rocketing, it’s shocking that customers are being hit by extra costs, just for being loyal to their insurer.”
SHELL SELLS UP
OIL giant Shell has sold its home energy business to rival Octopus.
If regulators approve the deal, Shell Energy’s 1.4million UK customers should be automatically switched over in the autumn.
The deal, including Shell’s 500,000 broadband customers, leaves Octopus with nearly 6.5million UK customers.
SUPER LOSSES
LOSSES rose at fashion retailer Superdry after what it called an “exceptionally challenging” year.
The firm lost £78.5million in the year to the end of April, down from a £17.6million profit.
It had to slash costs after borrowing over £100million but said it was now on a “much firmer footing”.