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Home Financial Services ~problem

This is a long story and I hope I posted in the right place :o so..

My sister was recently contacted by Home Financial Services regarding her mortgage, she had gathered a few quotes online last year, as her mortgage deal was coming to an end, and assumed that this company was one of them.

She arranged for them to come round, a "very friendly" lady visited and took a few details. She told my sister that she would have to have life insurance to get any of the mortgage deals. She assured my sister that she could save her £124 a month, the life insurance was £16.50 so she agreed.

She didn't hear anything for about a month, until 2 weeks ago she was contacted by them by telephone with a few mortgage quotes, all of which were more expensive than her present mortgage! So they left it at that.

Anyway.. a few days later she received her life insurance policy, of which she canceled as she didn't require it!

She then received a very nasty phone call from the adviser, saying what would happen if she died, or had a crash tomorrow etc My sister put the phone down. The problem is she foolishly signed a fee waiver agreement with this company on there visit.

My sister believes now that they had no intention of getting her a mortgage deal, she received no quotes through the post, they looked at no bank statements, no payslips or anything and feels tricked into getting life insurance that she didn't want! this was followed by a snotty letter dated the day before the call, stating that if she doesn't call to pay the fee/reinstate the insurance they will
... have no other alternative than to refer your case to our solicitors and for them to pursue 'her' for the fee waived...
all this before they had even spoken to her? :mad:

The fee waiver states that she must keep the life insurance for 2 years or pay them £360.83.
She is now out of pocket by £16.50 a month, great financial advice!!

She feels very foolish about this and just wants to pay them and end this. I think it seems very unfair and appreciate anyones advice or experience of this.

Thankyou
Life is like a camera... Focus on what's important, Capture the good times, Develop from the negatives, and if things don't work out Take another shot.

Comments

  • dunstonh
    dunstonh Posts: 117,998 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    My sister believes now that they had no intention of getting her a mortgage deal, she received no quotes through the post, they looked at no bank statements, no payslips or anything and feels tricked into getting life insurance that she didn't want!

    She may think that but its unlikely as they would probably earn more on the mortgage than a £16.50pm life assurance.
    She then received a very nasty phone call from the adviser, saying what would happen if she died, or had a crash tomorrow etc

    Thats not nasty. Thats pointing out the consequences of not having cover. Some people may not like the subject but there is nothing nasty in that post.
    She is now out of pocket by £16.50 a month, great financial advice!!

    If she didnt have life assurance before and there was a financial need for life assurance then it is great financial advice.
    She feels very foolish about this and just wants to pay them and end this. I think it seems very unfair and appreciate anyones advice or experience of this.

    Does she have any financial dependent (spouse or dependent children)?

    If she actually has no financial need for the product then it is a mis-sale. Doesnt matter if its to cover a fee or not. You should not recommend a policy that is not suitable. If that is the case, she should complain.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • tasha999
    tasha999 Posts: 158 Forumite
    She lives alone with no dependants or spouse.
    Thats not nasty. Thats pointing out the consequences of not having cover. Some people may not like the subject but there is nothing nasty in that post.
    My sister says the women was raising her voice and wouldn't let her get a word in, almost a rant! From what my sister has said the adviser has been very unprofessional throughout.
    Life is like a camera... Focus on what's important, Capture the good times, Develop from the negatives, and if things don't work out Take another shot.
  • cogito
    cogito Posts: 4,898 Forumite
    tasha999 wrote: »
    She lives alone with no dependants or spouse.


    My sister says the women was raising her voice and wouldn't let her get a word in, almost a rant! From what my sister has said the adviser has been very unprofessional throughout.

    In that case, it's hard to see where there is a need for cover. It certainly looks like a mis-sale and if she is approached again by this company, she should simply say that if she hears any more about the matter she will report them. That should do the trick.
  • tasha999
    tasha999 Posts: 158 Forumite
    My sister didn't even know what she was being insured for.
    I think I might have found a problem.. the policy includes critical illness, surely they can say this is justified?

    I can see why she could need that, but I still feel this was underhand.

    She is on a low wage, lives alone and really can't afford to pay any extra out at the minute. She only agreed because they said they would save her money with her mortgage!
    Life is like a camera... Focus on what's important, Capture the good times, Develop from the negatives, and if things don't work out Take another shot.
  • dunstonh
    dunstonh Posts: 117,998 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It looks like a nailed on mis-sale. An adviser has to do a needs analysis and report that shows the reasons why there is a need and what the cover offers. With no dependants then there is no financial need.

    She should threaten them with complaint if they decide to follow up and she should say she is prepared to go to the ombudsman if required (a complaint to the FOS costs the advising firm £450. So, why come after her for £360 when its going to cost £450. Plus, its an obvious mis-sale which would go on the adviser's record and could prevent them getting a new employer in future or increase their liability insurance.
    I think I might have found a problem.. the policy includes critical illness, surely they can say this is justified?

    In which case, she should have been recommended a standalone Critical illness plan. If the plan costs £16.50pm and includes CI then the cover cant be for very much or your sister is young.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • tasha999
    tasha999 Posts: 158 Forumite
    edited 12 August 2009 at 6:15PM
    dunstonh wrote: »



    In which case, she should have been recommended a standalone Critical illness plan. If the plan costs £16.50pm and includes CI then the cover cant be for very much or your sister is young.

    I looked at the policy, the actual policy is Bupa Health Assurance for a critical illness cover with life product. Do you think its worth a complaint?

    Thank you for your replies.

    edit: my sister is 33, and the policy is for 60,000
    Life is like a camera... Focus on what's important, Capture the good times, Develop from the negatives, and if things don't work out Take another shot.
  • dunstonh
    dunstonh Posts: 117,998 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I looked at the policy, the actual policy is Bupa Health Assurance for a critical illness cover with life product. Do you think its worth a complaint?

    Yes. She should have recommended the pure CI policy with no life assurance based on what you have said.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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