Tower Insurance has reported an issue relating to the disclosure of fees for some of its customers who pay in instalments.
The firm’s CEO, Richard Harding, says no customer was left out of pocket or disadvantaged as a result of the error.
“We calculated and charged fees correctly and displayed the correct amount prominently on our customers’ renewal,” says Harding in a statement.
“However, further on in the policy documentation, a lower and incorrect interest percentage fee was disclosed, which may have led to some confusion and we apologise for that.”
The general insurer reported the issue to the FMA and volunteered to donate $100,000 to the Starship Foundation.
Harding says details of its 350,000 customers are being transferred from hundreds of legacy products to new, plain language policies, with no interest fee charged for paying in instalments.
A spokesperson for the FMA says: “Tower notified us of this issue and their plans to resolve it. They advised us that no customer has suffered a financial loss as a result of this issue.
“Based on the information provided by Tower, at this stage we do not have any concerns around their handling of this issue.
“We don’t have comment on their decision to make a charitable donation.”