The Barbon Insurance Group, which owns popular brands such as HomeLet and Letsure, has recently announced that it will be issuing refunds to its customers following an investigation by the Financial Conduct Authority (FCA). The refunds are a result of the company overcharging its customers for rent guarantee insurance, which is a type of insurance that protects landlords against the risk of tenants not paying their rent.
Here’s what you need to know about the Barbon Insurance Group refunds.
Background on the investigation
In 2019, the FCA launched an investigation into the rent guarantee insurance market after it found that many insurers were charging excessive premiums and not providing adequate coverage to their customers. During the investigation, the FCA found that the Barbon Insurance Group had overcharged its customers for rent guarantee insurance and failed to disclose the full extent of its charges.
The company reportedly charged customers up to 2.5 times more than the market average for rent guarantee insurance. In addition, the company added hidden fees and commissions to the policies, which were not properly disclosed to customers.
What are the refunds?
As a result of the investigation, the Barbon Insurance Group has agreed to issue refunds to customers who were overcharged for rent guarantee insurance. The company has set aside a total of £14.9 million for the refunds, which will be paid to around 27,000 customers.
According to the company, the refunds will be made up of the excess premiums that customers paid, as well as interest on those premiums. Customers who are eligible for a refund will be contacted directly by the company in the coming weeks.
How can you find out if you’re eligible for a refund?
If you’re a customer of the Barbon Insurance Group and you’ve taken out rent guarantee insurance, you may be eligible for a refund. The company has stated that it will be contacting eligible customers directly in the coming weeks to provide more information about the refunds.
If you haven’t heard from the company but you believe you’re eligible for a refund, you can contact the company directly to enquire about your eligibility. The company has set up a dedicated email address for refund enquiries, which is [email protected].
What can you do if you’re not happy with the refund offer?
If you’re not satisfied with the refund offer from the Barbon Insurance Group, you can make a formal complaint to the company. The company has a formal complaints process in place, which can be accessed on its website.
If you’re still not happy with the outcome of your complaint, you can escalate the issue to the Financial Ombudsman Service (FOS). The FOS is an independent body that provides free and impartial dispute resolution services for consumers and financial services firms.
Conclusion
The Barbon Insurance Group refunds are a positive development for customers who were overcharged for rent guarantee insurance. The refunds are a result of the FCA’s investigation into the insurance market and a reminder that companies need to be transparent about the fees and charges they impose on their customers.
If you’re a customer of the Barbon Insurance Group and you believe you’re eligible for a refund, make sure to check your emails and contact the company directly if you haven’t heard from them. If you’re not satisfied with the refund offer, you can make a formal complaint and escalate the issue to the FOS if necessary.