Press Release - 26 July 2006

Bogus Non Resident accounts, legal actions, €50,000 insurance award, pregnancy matter, stockbroker's mismanagement of an investment portfolio...

...lost purse and credit rating complaints decided on by the Financial Services Ombudsman.




The Financial Services Ombudsman., Joe Meade, provides a statutory complaints resolution mechanism since April 2005 for complaints against financial service providers. Today the Ombudsman published on his website

significant decisions he made in the January/June 2006 period on unresolved complaints from customers of regulated financial service providers .The decisions comprise



Credit Institutions





• Bogus non resident account €900,000 tax settlement complaint not upheld


• An 89 year old person's investment of €500,000 with a Building Society was made under a mistaken impression - €4,000 award


• Bank letter about a customer's overdrawn account sent to the wrong address-€4,500 compensation


• Wrong credit rating record for a twin brother results in a €2,000 award


• Part of an elderly widow's €1.5 m. Investment Portfolio was mismanaged by a leading stock broking firm - €18,500 compensation awarded


• Mortgage broker negligence results in €2,000 compensation


• Alleged misrepresentation of financial advisor fee- partly upheld


Insurance


• Company and intermediary increase offer for death benefit by €43,000 after negotiations with the Ombudsman


• Travel insurance and pregnancy – complaint upheld


• All reasonable care needed if a claim for a lost purse on a plane is to succeed-not upheld


• A motor insurance no claim bonus is not a no blame bonus-not upheld


• Road works business disruption claim could not be investigated


• Loss of trust in an insurance company-not upheld





Judicial Review, High Court appeal and enforcement action also arose in the period.





Some 1600 complaints- 960 insurance and 665 credit institutions -were received by the Ombudsman during the first six months of 2006.








Note for editors


The Financial Services Ombudsman was established on a statutory basis and opened for business on 1st April 2005. As an independent officer, he 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 statutory Ombudsman scheme. His role in addition now covers members of credit unions, customers of brokers, intermediaries, moneylenders and all other financial service providers. The Ombudsman is financed by statutory levy payable by providers.


Further information available from Gemma Normile (6318569) or Naoimh Keane (6318573)


Financial Services Ombudsman


3rd Floor Lincoln House,


Lincoln Place,


Dublin 2.


Lo call 1890 88 20 90


Tel: 01-6620899


Fax: 01-6620890


Email address mailto:enquiries@financialombudsman.ie


Website address www.financialombudsman.ie