Press Release - 08 February 2006

Financial Services Ombudsman awards significant compensation but also rejects other complaints

The Financial Services Ombudsman., Joe Meade, today published on his website www.financialombudsman.ie significant decisions he made on unresolved complaints from customers of regulated financial service providers in the October to December 2005 period. The latest decisions comprise



Credit Institutions

• Building Society had to repay €29,000 to a couple who switched their commercial mortgage as a fixed early redemption fee of six month’s interest was charged. The Ombudsman has directed the society to change its policy to the actual loss incurred

• Nature of derivatives investment was not explained and €6,500 awarded

• Olympic Games – excessive hire of cars by credit card not upheld

• Complaint of €23,000 allegedly missing from a credit union account not upheld

• Credit Union did not inform a member of his rights and €250 compensation awarded

• Credit card anti fraud measures are appropriate even when they cause inconvenience

• Bank was wrong to withhold title deeds and €5,000 compensation was awarded.



Insurance

• A complex total permanent disability and critical illness claim for €100,000 was initially rejected by the insurance company but a mediated settlement of €33,000 was reached by the Ombudsman.

• Payment Protection Plan, including Disability Benefit – Benefit reinstated as complaint upheld.

• Medical Expenses Insurance - Following a review by the Ombudsman the cost of surgery undertaken outside of Ireland was met, without admission of liability, at an amount that would have been paid if it was carried out in Ireland.

• Medical Insurance – a claim for the cost of a hip replacement was not upheld but the particular policy exclusion needs clarity.

• Stolen motor vehicle – Ombudsman increased valuation offer by €1,000 to €3,700.

• Household Buildings Policy – Alleged Storm Damage of €80,000 not upheld.

• Life Assurance – A with profits Endowment Policy should not have been issued and accordingly the premiums paid had to be refunded.

• Whole of life policy allegation of misleading information - compromise settlement agreed.



The Ombudsman considers that the general public and financial service providers be informed at an early date of decisions made by him. He has already published in October 2005 similar details of decisions made in the April/September 2005 period and it is his intention to publish similar details from now on at half yearly intervals. In January 2006 he published statistics on complaints trends which indicated that 3,300 complaints were referred to him for investigation since April 2005.



Note for editors

The Financial Services Ombudsman's Bureau was established on a statutory basis and commenced work on 1st April 2005. The Financial Services Ombudsman, as an independent officer, ensures that unresolved complaints from customers of all regulated financial service providers are investigated, mediated and adjudicated fairly.


The Ombudsman is empowered to make awards up to €250,000 and awards are binding on both parties subject to appeal to the High Court. Eligible consumers include all natural persons, limited companies with a turnover of €3million or less (SMEs) and all unincorporated bodies, including clubs, charities, trusts, partnerships etc.


The existing voluntary Ombudsman for the Credit Institutions and the Insurance Ombudsman of Ireland schemes were incorporated into the Bureau. The Bureau’s role in addition covers members of credit unions, customers of brokers, intermediaries, moneylenders and all other financial service providers.



Further information available from Diarmuid Byrne



Financial Services Ombudsman's Bureau



Lo call 1890 88 20 90



Email address mailto:enquiries@financialombudsman.ie

Website address www.financialombudsman.ie