In this issue we set out our approach to complaints involving disputed plastic card transactions, where the card was used as what the Consumer Credit Act calls a "credit-token" in order to obtain credit. Our case studies include that of a customer who discovered from her statement that her credit card had been used by her son – without her knowledge – to make cash withdrawals totalling £5,000.
We re-visit a topic that has featured in earlier issues – that of "non-disclosure" in insurance cases – the situation where a customer fails to reveal a relevant fact when applying for, or renewing, an insurance contract. We outline some of the principles in the Financial Services Authority’s Insurance: Conduct of Business Rules, introduced in January this year, and set out the approach we take when looking at non-disclosure cases, taking into account both the law and good industry practice.
Finally, we highlight our approach to complaints involving mortgage endowment policies that are referred to us after the customer has accepted the firm’s offer of redress. In these cases, either the firm has failed to pay up or the customer has wanted to re-open the complaint.
ombudsman news gives general information on the position at the date of publication. It is not a definitive statement of the law, our approach or our procedure.
The illustrative case studies are based broadly on real-life cases, but are not precedents. Individual cases are decided on their own facts.