Big Fine For Cancelled Policies
The Financial Services Authority (FSA) has fined Hastings Direct well over GBP700,000 for cancelling customers car insurance policies unfairly.
Around 4,500 customers were affected when the Hastings Direct system generated car insurance quotes that were calculated incorrectly and stated prices that were lower than they should have been. Seeing this Hastings simply cancelled them, which was unfair in the eyes of the FSA.
The view of the Financial Services Authority is that Hastings Direct did not treat their customers as they should have done, believing other actions should have been taken rather than the cancellation. This is why the fine was imposed and it is sure to make the car insurance provider check their systems more.