Insurance company Quinn Direct will not have to pay back a €25 charge it imposed on customers who transferred their motor insurance from one vehicle to another over the past six years, after a High Court ruling today.
The case arose after a customer who was charged the fee complained to the Financial Services Ombudsman.
The Ombudsman upheld his complaint in April this year, and Quinn Direct agreed to refund the man €50.
However, the insurance company challenged a direction from the Ombudsman that it should refund all other customers who had been charged the fee in the previous six years.
The High Court ruled this morning that the Ombudsman did not have the power to make this direction under the legislation.
The court ruled the Ombudsman can only make directions in relation to a specific person who has made a complaint.
The Ombudsman, Joe Meade, said he welcomed the fact that the High Court had now interpreted this legislation.
He said he would be considering the judgment and meeting with legal advisers in order to decide whether to appeal to the Supreme Court, to seek a change in the legislation, or to accept the judgment.
In a statement, Quinn Direct said it welcomed the decision of the court.
A spokesperson said Quinn Direct had always disclosed the charges, if any, that customers had to pay for changes to their policies.
He added that there was never any question of hidden charges.
Quinn Direct has around 400,000 motor policy holders in this country.
