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Tesco Bank Refunds Overview:
- Who: Tesco Bank will issue refunds to hundreds of overcharged customers.
- Why: The bank mistakenly quoted customers a price for no claims bonus protection that was £10 less than the actual cost
- Where: Customers were affected nationwide.
Tesco Bank will issue refunds to hundreds of car insurance customers after the bank misquoted the cost of no claims bonus protection by about £10.
From April 2020 to September 2021, Tesco Bank issued policy renewal letters to 124,451 of its car insurance customers. The letters incorrectly stated the cost of adding no claims bonus (NCB) protection, which protects drivers’ no claims discount in the event of an accident.
As a result of Tesco Bank’s error, thousands of customers were collectively charged £1.2 million more than they expected.
Tesco Bank’s Error Denied Customers ‘Informed Choice’
Tesco Bank alerted the Competition and Markets Authority, which ordered the bank to contact each customer about the error.
“Had customers been properly advised by Tesco Bank about how much their insurance premium renewal would have reduced by removing no claims bonus protection, they would have been better able to make an informed choice of whether or not to include it in their policy,” the agency said.
Tesco Bank offered affected customers the option to either receive a refund and lose their NCB or to keep the NCB and forgo a refund. Hundreds of customers have chosen to receive a refund, while the rest of the affected customers will keep their protection, according to Mirror.
The CMA has ensured Tesco Bank’s renewal letters now state the correct protection cost amount.
Through a spokesperson, Tesco Bank apologised for its error and reported that “in all cases there was no impact on the cover provided to our customers.”
Were you affected by Tesco Bank’s error? Tell us about your experience in the comments section below!
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