Financial services and pensions ombudsman Ger Deering received almost 6,000 complaints from members of the public last year and on Thursday published 228 decisions. These ranged across most financial sectors.
Credit card debt - €10,000 compensation paid
A man accidentally underpaid the amount owed on his credit card by €19. After calling his lender to advise he would make a payment, he paid the amount owing and a late fee charge of €15. However, his bank deemed he had fallen into arrears and placed a restriction on the the use of the card. The customer said subsequently he was charged a high interest rate. The ombudsman substantially upheld the complaint and order the bank to pay €10,000 to the individual.
Life insurance policy - €50,000 paid
The family of a man who died was told by his insurance company that he had cashed in this life insurance policy before his death. However, they learned that after paying into the policy for 31 years, the man had been told his premium was to increase by over 100 per cent. Outraged at this and unable to afford the extra cost, he had looked to reduce it. After consulting with the insurer the man felt his only option was to apply for a new insurance plan and cancel his existing product. He was subsequently refused the new one. The ombudsman substantially upheld the complaint and ordered the insurer to pay the dead man’s family €50,000.
Car insurance - €3,000 paid
After an uninsured driver drove into a man’s car, he was told his no-claims bonus would not be affected. However, when he subsequently when to renew his policy he found the bonus had been reduced, leading to a sharp rise in the cost of his policies. The insurer was ordered to pay €3,000 in compensation.
Mortgage - €90,000 paid
A couple were awarded €90,000 in compensation after their lender was deemed to have acted in an obstructive manner when they ran into difficulties meeting payments on their mortgage. Following what the ombudsman described as a series of misunderstandings and miscommunications between the couple and lender, the couple were classified by the bank as being non-co-operative. They subsequently sought to sell the property to clear the arrears and agreed a deal that would have left a small sum outstanding. The bank instead said it had appointed a receiver to the property. The ombudsman concluded the couple had been left in an impossible situation and that the bank had acted in an obstructive manner.
Mortgage protection - €10,000 paid
A man who took out a mortgage protection policy was awarded €10,000 in compensation after his insurer claimed there was no evidence of him having a disability when he went to make a claim, despite his having a certificate from his GP.
