Direct Line faces £30m bill for overcharging motor, home customers

(Sharecast News) - UK insurer Direct Line said it was reviewing cases where it charged existing motor and home insurance customers higher prices for policy renewal than for new customers, in a move that could cost it £30m.

"An error in our implementation of these rules has meant that our calculation of the equivalent new business price for some customers failed to comply with the regulation. As a result, those customers have paid a renewal price higher than they should have," Direct Line said in a statement on Friday.

The current estimate of these payments is in the region of £30m of which half was provided for within the group's 2022 full year results, it added.

Reporting by Frank Prenesti for Sharecast.com



"Direct Line Group will carry out a review to identify all instances where a customer has been overcharged and provide appropriate redress," the FCA said in a statement.