AA refuses payouts for cover errors

THE AA is refusing to refund families who have paid twice for breakdown cover.

It promised to help some 17,000 customers affected for up to 16 years after opening Lloyds bank accounts that included the cover. But compensation is being rejected for a range of reasons.

Packaged bank accounts are paid-for and often come with extras such as insurance cover.

AA noticed the problem when it upgraded its IT last year and is contacting those affected.

Elizabeth Rawlinson, 50, of Kent, says her husband David has been paying twice since 2001, when he opened a paid-for Lloyds account.

They already had AA cover — which started in 1999. She says: ‘We were covered twice for the same cars, but as one is in my name and one is in my husband’s, the AA won’t help us.’

The AA says the main reason the couple were exempt was because the policies were not like-for-like. Other readers say they were rejected for cancelling membership before the decision to compensate.