30% increase in complaints to Financial Services Ombudsman

There has been a 30% increase this year in complaints to the Financial Services Ombudsman (FSO) Joe Meade.

The FSO today gave details of significant decisions made since the start of the year. A total of 15 complaints were upheld and five were rejected.

In one case, a systemic problem was identified by Ombudsman in 1,800 cases, on investigation of life policy cover to a couple on their late 60s.

Among the cases upheld by the FSO were:

- Insurance agent drove a vulnerable farmer living alone to an ATM cash point to secure sale of unsuitable health policies while another agent stayed behind in the house - action condemned, premiums of €1,520 returned and €1,500 compensation;

- Naive bank official facilitated an "interfering neighbour" to improperly deal with and change the account status of elderly siblings joint deposit account of €106,000 - the 85-year-old was in hospital and the 79-year-old was deaf; €1,200 compensation;

- Husband, aged 69, met a bank, invested €100,000 in a fund which then fell sharply in value to €68,000 and signed what purported to be his wife’s signature - €52,000 refunded by bank to wife by direction from Ombudsman;

- €50,000 award following delayed review of Unit Linked Whole of Life Policy for couple in their late 60s who had by then paid over €60,000 in premiums – increase from €780 to €2,000 in monthly premium sought; systemic problem also identified by Ombudsman in 1,800 other cases;

- Accountant’s unnecessary delay in submitting financial accounts to Insurance Company had serious consequences for Claimant’s Income Protection claim - Ombudsman was able to get claim reopened;

- Switch of Medical Plans recommended by the Health Insurer resulted in no cover for cardiac treatment expenses; restoration to original Medical Plan, without a two year waiting period, directed by Ombudsman and €5,000 compensation;

- Lost property title deeds merits €3,500 compensation against bank;

- €8,000 awarded against credit union over loan insurance for a disabled person; bad customer service and unhelpful approach overall.