RAC slammed for renewal forms

MORE than one million RAC breakdown cover customers could receive compensation after the firm failed to highlight premium changes.

Insurers must clearly tell customers how much they paid the previous year when they send letters at renewal, and explain that they should shop around. But the Financial Conduct Authority (FCA) found the RAC failed to do this for all customers. The firm will write to 1.2 million policyholders who renewed their policies after last April 1 and may have had inaccurate information. The RAC will have to reimburse them if they could have saved by switching.

Jonathan Davidson, of the FCA, says: ‘It is unacceptable to see some firms are still not being properly transparent.’