Experian pays out over insurance ‘perk’

EXPERIAN customers who complain to the Ombudsman about being unfairly sold identity theft insurance are winning compensation, it has emerged.

The credit rating agency offers a service called Credit Expert, costing £14.99 a month, which allows customers to manage their credit file and check their score when applying for loans and credit cards.

Between January 2011 and July 28, 2014, the policy also included an identity protection cover designed to pay out if fraudsters stole customers’ identity.

But users claim they had no idea when they signed up for Credit Expert that they were also buying insurance.

For many, the first they heard of it was when they tried to cancel the service — only to be told they could choose to pay £6 less per month if they gave up this additional element.

Having complained to Experian and got nowhere, customers who then turned to the Financial Ombudsman began to win compensation. Up to a third of customers who lodge a complaint are garnering a payout, the Ombudsman says.

An Ombudsman spokesman says: ‘A lot of the time, these insurance boxes were pre-ticked — and the customer did not have the option to untick them.

‘When investigating complaints, we also look at what the ID theft insurance actually offered customers, as it often doesn’t cover them any more than the free protection they get from their bank.’ Last year, Money Mail first revealed how the policies were being sold.

If customers did not realise what they were buying, they may be due money back. How much money you get back depends on how long you had the service.

An Experian spokesman says: ‘ We firmly believe that we have always sold Credit Expert fairly and transparently, and we have worked with the Ombudsman to successfully resolve a few customer complaints.

‘If our customers have questions, please call us on 0800 952 0096 or 0344 4818 196 so that we can help.’

If Experian throws out your claim, you can take your complaint to the Omdbudsman by calling 0800 023 4567.