By Miles Brignall in The Guardian.
Is the AA exploiting its most loyal customers – the elderly but also the very busy – by automatically renewing annual breakdown cover at up to twice the original price, in the expectation many won’t notice?
That’s the allegation from two AA staff members who have contacted Guardian Money keen to expose the “shameful and embarrassing” way they claim the breakdown recovery business now operates.
The pair, employed to sell the company’s services outside big supermarkets across the south-east, claim the business model is based on signing up new customers on to cheap “teaser” deals, and then pushing through massive price hikes (as much as 124%) in the second year.
The contracts they sign mean their policy is automatically renewed every year, which the salespeople described as a “scandal” as they say it leads to people overpaying for policies that they no longer want or, in many cases, will never claim on, as they may have sold their car.
The AA is by no means alone in offering teaser first-year discounts. But the salespeople who contacted Guardian Money say it’s the scale and the manner of the second-year increase that sets the company apart.
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