Warranty policy cancellation claim

The consumer’s issue:

I took out a policy with the warranty company in March 2016, which I then cancelled in March 2017 as the level of assistance that I received in my time of need was unsatisfactory. I received a threatening letter from a debt recovery agent demanding £300 of unpaid premiums during 2017. However, I cancelled the policy, and as a pensioner, the demand caused considerable stress and anxiety to the household. I am therefore seeking compensation arising from the distress caused by the action.”

The accredited business’ response:

  • I have attempted to verify that a request to cancel the policy was made in March 2017 by reviewing notes and the database for call recordings.
  • I have been unsuccessful in finding any evidence of the policy being cancelled by the consumer.
  • I do not believe the customer had cancelled the policy in March 2017, because in July 2017, three faults on the vehicle were reported to us.
  • I am satisfied the consumer was aware that the policy was active at this time, as there was contact with us regarding progress of the claim.
  • As we had no instruction to cancel the warranty until the consumer received the letter from the debt collector, we were justified in following up the outstanding amount.
  • We did not offer compensation, as the amount owed was waived as our resolution of the customer’s issue.

The adjudication outcome:

  • The Motor Ombudsman adjudicator did not uphold the consumer’s complaint, as they were satisfied that the warranty company took steps to alleviate the consumer’s concerns by waiving the amount they believed they were owed.
  • The Motor Ombudsman is unable to provide compensation as an award in this case as it falls outside of The Motor Ombudsman’s remit.


  • The consumer did not appeal the adjudication outcome, and the case was closed.