An Auckland-based insurance company is refunding nearly $45,000 after complaints it failed to tell customers about an administration fee for cancelling their vehicle insurance.
The 840 customers were charged over four years up until March this year, until a former policy holder complained to the Commerce Commission.
Commission competition branch manager Greg Allan said Protecta Insurance did not disclose the administration fee in the terms and conditions of the policy at the time the insurance was purchased, or on its website.
The commission had officially warned Protecta for misleading conduct under the Fair Trading Act.
The company acknowledged its mistake and will refund approximately $44,471 to the 840 policy holders.
