Press Release - 01 December 2009

Case Studies - December 2009

Unemployed person not treated properly by insurance company, ‘Burial fund’ of 80 year old granny wrongly invested, misleading customers about investment products, overcharging of non smokers by insurance companies, credit unions bad investments, grandmother lucky she had no car crash, insurance loss adjusters falling out, fixed rate mortgages, stockbrokers discretionary accounts and bank losing a land certificate feature in latest findings of the Financial Ombudsman.

Financial Services Ombudsman, Joe Meade, who retires at year end, published today on his website http://www.financialombudsman.ie/case-studies/ summaries of 30 findings he made since July 2009 where in some instances he made good over €1.4m to consumers but did not uphold other significant complaints also.

• €250,000 to retired farmer for bank’s cavalier approach and belittling remarks
• €410,000 invested in Property Bond to be refunded to 70 year old lady
• 80 year old granny’s €10,000 ‘burial fund’/grandchild’s €2,000 wrongly invested
• €143,000 refunded to two elderly couples after personal intervention of Ombudsman
• €175,000 award for €290,000 loss suffered by another elderly couple
• €125,000 awards in two cases for stockbroker’s inappropriate high risk investments
• Mortgage rate to remain at original tracker rate at end of fixed rate period
• No breakage fee to be charged on exit from a fixed rate mortgage
• €7,000 award for mortgage breakage fee conditions not being clearly stated
• Investment Mortgage rate alteration was wrong in three instances
• €100,000 for loss suffered by Credit Union in an investment
• €100,000 award as lost land certificate led to a cancelled €225,000 property sale
• €10,000 to Credit Union for loss of €28,000 in €130,000 life policy
• €21,000 award as move of pension policy to secure fund not carried out
• €6,500 for incorrect statement to pensioners about ready access to investment
• Overcharging of insurance premiums for non smokers discovered
• €1,000 to grandmother, an uninsured driver, for Insurance Company error
• 50% award for stolen car valued at €20,000
• Non payment of €625,000 life assurance death benefit was correct
• €1m of alleged inappropriate investments not upheld
• Insurance loss assessor no help to his client as Company acted fairly
• Credit Union was wrong to release €5,400 from a minor’s account
• Hire Purchase Company’s ten day clearance period was inequitable
• Change in maternity benefit health insurance cover was not an upgrade
• €2,000 for not cancelling mortgage protector policy at age 65
• €4,000 award against Insurance Company for poor treatment of unemployed man
• €22,000 travel insurance cancellation claim upheld

Workload

By 30 November 2009 some 7,150 complaints were received, an increase of 34% over the 5,350 received by November 2008. Since its inception in April 2005 some 25,000 complaints have been received by the Ombudsman’s office and at least €60m has been made good to consumers as a result of the Ombudsman’s work. The cumulative knock on effect that findings by the Ombudsman have played industry wide in other getting matters resolved is a further major benefit of the Office.

Further information: Conor Cashman (6318575); Diarmuid Byrne (6318561); 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: enquiries@financialombudsman.ie
Website: www.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 – his findings 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 complaints he deals with and what lessons can be learned.