The Financial Ombudsman Service, which adjudicates on consumer complaints, says on average it processes complaints within six months. However this is not always the case, for Elizabeth and Keith Birbeck their mortgage endowment mis-selling claim has taken almost 5 years for a conclusion to be reached.
Nationwide Building Society was forced to make a payment of £11,000 compensation for the mis-sale of their mortgage endowment policy in 1987.
The money will make-up for the £24,000 shortfall on the couple’s threebedroom semi-detached house, worth £180,000.
The Birbecks have been waiting since 2004 for their case to be concluded.
Elizabeth and Keith’s complaint hinged on the fact that their endowment term stretched well beyond Keith’s planned retirement date. Initially, Nationwide rejected their claim saying the advice was sound because the extended term of the policy kept costs down. Yet the Birbecks argued that at the time they could easily have afforded a shorter endowment term.
The Birbecks were originally offered £5,000 compensation but they appealed and the building society rejected the claim.
In July 2005 the complaint was passed to the FOS, who then took 8 months to review – and reject – the case.
The Birbecks appealed against the decision and by April 2007 a different FOS adjudicator decided that in fact the policy had been mis-sold into retirement and that additional compensation was due.
While this should of ended the matter Nationwide appealed. Their case was passed on to an ombudsman, the most senior adjudicator, for a final verdict.
Finally the ombudsman rejected the Nationwide appeal and the Birbecks were offered the original £5,000, but as the policy shortfall had widened this was increased to £11,000.
Emma Parker, FOS spokeswoman, agrees that the Birbecks experienced an unacceptable delay. She said ‘Endowment claims take on average between one year and 18 months to resolve, but in this case we let the couple down.’
Source: Daily Mail