Mortgage Protection Decision Reference 2019-0264

• Case Outcome: Rejected
• Subject Matter: Mortgage Protection
• Reference: 2019-0264
• Date: 13 August 2019
• Conducts Complained Of: Mis-selling (insurance),
• Finantial Sector: Insurance

Decision Ref:

2019-0264

Sector:

Insurance

Product / Service:

Mortgage Protection

Conduct(s) complained of:

Mis-selling (insurance)

Outcome:

Rejected

LEGALLY BINDING DECISION

OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

Background

The complaint relates to the Complainants’ mortgage protection assurance policy in

connection with a mortgage loan taken out with the Provider in 2008.

The Complainants’ Case

The first Complainant submits that, in December 2007, when he was aged 65, the Provider

insisted that he take out a life assurance policy as part of a loan taken out by his son, the

second Complainant. (The first Complainant maintains that his understanding was that he

was a guarantor of the loan rather than a co-borrower.) The first Complainant states that

“I was most reluctant to agree to this but was left with no option as [the Provider]

refused to release the mortgage money unless I did… In order to assist my son I had

no option but to take out the life assurance at a monthly premium of €311.75”.

The first Complainant submits that he was unaware at the time that the Provider had no

right to force him to take out the life assurance policy “under the regulations” as he was

over 50 years of age. The first Complainant states that the Provider has “steadfastly

refused to address the central issue of their regulations breach, preferring instead to trot

out the fact that the issue was agreed by solicitors at the time”.