Underwriting agency Mecon Insurance has refunded customers and paid costs of $20,000 after engaging in what Consumer Affairs Victoria called “price exploitation and misleading and deceptive conduct”.

But Mecon says a judge in the Victorian Supreme Court accepted the company’s action in continuing to charge policyholders for the abolished Victorian fire services levy was inadvertent and Mecon did not gain from it.

Consumer Affairs Victoria says the Supreme Court of Victoria found that between July 2013 and May 2014, Mecon included the levy in insurance contracts, even though it had been removed.

It says about 60 customers were affected.

But Mecon and Steadfast, which holds a majority stake in the underwriting agency, say the Consumer Affairs statement is misleading and the amounts involved – totalling $7700 – were relatively insignificant.

Steadfast Group Company Secretary and Corporate Counsel Linda Ellis told insuranceNEWS.com.au the court orders were by consent.

“The judgement and orders say the alleged breaches were inadvertent and there was no financial gain,” she said.

“The amounts were all refunded.”