Press Release - 14 July 2009

Over €1m of Inappropriate Investments by three Elderly couples rectified; Geared Property Funds downsides must be clearly explained; Conflicts of Interest not disclosed in investment property advice; Credit Card and ATM frauds; 96,000 insurance policy review issues may arise; Mishandling of Widower’s death benefit claim; Motor Insurance phone cancellations and unfair Death Benefit qualifying condition feature in latest findings of the Financial Ombudsman.

Financial Services Ombudsman, Joe Meade, published today on his website summaries of 27 findings made since 1 January 2009.

www.financialombudsman.ie/case-studies/

Investments

• €345,000 returned to two elderly investors for inappropriate investment
• €300,000 refunded for six year investment bond wrongly sold to 85 year old couple
• €116,000 award to elderly investors for wrong sale of €560,000 ten year bond
• €90,000 for not explaining the downsides of a €150,000 geared property fund
• €60,000 for unsuitable €75,000 High Risk Property Fund Investment
• €53,000 award for non disclosure of conflict of interest in investment property
• €6,600 where €40,000 retirement lump sum investment fell €10,500 within a year
• €6,500 for unsolicited approach to old age pensioner to change a €35,000 investment
• €1m of alleged inappropriate investments by elderly person not upheld
• €100,000 Investment Bond complaint not upheld
• Six month notice period for cashing in investment cost investor €5,000
• Accountancy firm’s role in ‘execution only’ €500,000 investment was confusing

Insurance

• €7,500 award to widower told in error of possible €130,000 in death benefit
• €3,000 for insurance reviews not carried out - possible 96,000 other cases
• Benefit of €25,000 paid to blind person as Company’s actions were unfair
• Cause of death insurance benefit condition was inequitable-€25,000
• Cardiac Surgery costs of €15,000 and 50% of health insurance claim of €11,400 paid
• Benefit of doubt in complaint regarding €18,000 disability payment
• Concerns about motor insurance policies cancelled over the phone
• Burned out car complaint of €3,500 and son stealing it not disclosed
• €30,000 stolen property from guesthouse and non disclosure of prior claims
• €200 awarded for delay in paying travel insurance claim
• Hair transplant eyebrow treatment health insurance claim not upheld

Bank Accounts and Credit cards

• Bank account of deceased could not be released to a brother
• Allegation of €540 Credit card fraud in Thailand was upheld
• Only €2,000 of foreign ATM withdrawals of €4,000 were fraudulent

Workload
To 30 June 2009 some 3,900 (2,700 in 2008) complaints were received, an increase of 44%.

Further information

Conor Cashman (6318575); Diarmuid Byrne (6318561); or Sylvia Costello (6318556)

Financial Services Ombudsman, 3rd Floor, Lincoln House, Lincoln Place, Dublin 2.
Lo call 1890 88 20 90; Tel: 01-6620899; Fax 01-6620890
Email mailto:enquiries@financialombudsman.ie

Note for media

As an independent statutory office-established on 1 April 2005-the Financial Services Ombudsman ensures that unresolved complaints from customers of financial service providers are mediated, investigated and adjudicated on in an impartial and independent manner. He can in addition to rectifying matters make compensation awards up to €250,000 which are binding on both parties subject only to appeal to the High Court.

The Ombudsman must deal with matters in private but he publishes selected unnamed Case Studies generally every six months to enlighten everyone as to what type of cases he deals with and what lessons can be learned. This aims to enhance the financial services environment for both consumers and providers.