Motor insurer Hastings has had to reimburse 21,000 customers after becoming the latest financial services company to face software problems.
The insurer has been forced to contact thousands of motorists after an IT glitch meant some policyholders were charged too much.
It has paid out £1m in compensation to those impacted by the issue, a source close to the process said. The issue affected some of those who should have had their no claims discount increased at renewal but did not receive the saving.
“This was due to an isolated legacy issue with our system, which has now been fixed,” a spokesman said. “Current and previous customers who were impacted have all now been contacted. We have worked to put things right for our customers as quickly as possible.”