Financial Ombudsman awards compensation ranging from €1,500 to €140,000 against cos


Financial Ombudsman awards compensation ranging from €1,500 to €140,000 against mortgage broker, stockbroker, credit union, banks and insurance companies.

ON 16th January 2007 the Ombudsman’s website has been updated with significant decisions he made in the July/December 2006 period.

These decisions comprise

• Error by insurance broker results in €140,000 death benefit settlement
• Only Courts can determine whether an illegal act has occurred- insurance death benefit of €90,000 paid
• Stockbroker’s mismanaging of a portfolio results in €40,000 compensation
• Inappropriate derivative investment advice to an elderly person -€38,500 compensation
• Credit Union did not respect elderly person’s instructions -€24,000 awarded
• Conflict of interest by mortgage broker in sale of investment property-€16,500 awarded
• Cancellation of mortgage protection policy- extra €4,000 awarded
• Delay in review of insurance bond results in €3,000 compensation
• Entry on Irish Credit Bureau- compensation of €3,000
• Elderly person’s bank account cleared out by ATM card - €1,500 compensation ; improvements sought in ATM security / account monitoring
• Terminal bonus on Endowment Mortgage-not upheld
• Medical treatment abroad-prior approval needed-not upheld
• Lapsing a life insurance policy and a new declaration of health –not upheld
• No return on tracker bond investment- not upheld


Frequent Poster
Apropos of the FSO's complaints process generally - I had cause to make a complaint recently and did it via their online form but found it odd/bad that it did not sent an email at least to confirm that the complaint had been successfully submitted/accepted.