Mortgage Protection Decision Reference 2022-0327

Case OutcomeRejected
Subject MatterMortgage Protection
Reference2022-0327
Date27 September 2022
Finantial SectorInsurance
Conducts Complained OfFailure to provide product/service information,Failure to process instructions, Lapse/cancellation of policy, Maladministration
Decision Ref:
2022-0327
Sector:
Insurance
Product / Service:
Mortgage Protection
Conduct(s) complained of:
Failure to provide product/service information
Failure to process instructions
Lapse/cancellation of policy
Maladministration
Outcome:
Rejected
LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN
The complaint concerns the Provider holding an interest in a life insurance policy (herein
referred to as the “Policy”) in the period 1998 2017 and its suggested failure to explain
why it retained an interest in the Policy, after the underlying loan was repaid in 1998.
The Complainants’ Case
The Complainants took out a short-term bridging loan from the Provider in 1997 and they
say that this loan was repaid in 1998. As a condition of taking out the loan in 1997 the
Complainants were required by the Provider to incept the cover under the Policy, pay
monthly premiums on the Policy and assign the benefit of the Policy to the Provider.
The Complainants submit that they made repeated efforts to cancel the Policy after the loan
was repaid, and they submit that they were informed by the Provider that they could not
cancel the Policy. The Complainants continued to pay monthly premiums on the Policy from
1998 until 31 August 2017, when they were informed by the Provider, that it no longer had
an interest in the Policy.
The Complainants through their appointed Representative submits in its complaint to this
office on 31 July 2019 that:
“My clients took out Bridging Finance with [Provider] in 1997 and they were informed
that they had to purchase a Life Policy for same, which they did with [Insurance

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