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Mis-selling can I claim?
brencass
Posts: 2 Newbie
A while back I happened to notice something on my fathers bank statement.
Dad is 85 this year and recently I have had to help out with his financial matters.
He was paying £45 per month for his house and contents insurance with LLoyds TSB. (thats £540 per year).
When I asked him about this he said that he had been using LLoyds insurance for about 10 years. He had visited the branch after getting a leaflet in the post.
After that he had not really thought about it.
We immediately cancelled his policy and took out a new one elsewhere for a little over £150.
When asked by Lloyds why we were cancelling we explained the history. The lady at the call centre said that it was their policy to always offer the best cover available. This included contents cover up to £100K.
Now my dad lives on his own in an ex council house and collecting all of his belongings you would be lucky to make £1000 let alone 100K
She also said that they do not discount this service level.
So we said we wanted to cancel, suddenly she had other options we she could offer.
Not only have we cancelled, my dad has closed all of his accounts with Lloyds.
So the question is, is this a case of mis-selling?
My guess is that the bank gave him an initial low premium in the first year then jacked it up to the max.
Dad, 75 at the time, missed this and carried on paying in ignorance.
Or is this a case of buyer beware and tough luck dad for not spotting it sooner?
I know a few people who work in high street banks. They are under great pressure to sell insurance , loans and credit cards. One friend works in the Halifax and is constantly pressured to meet sales targets, irrespective of the suitability of the product to the client.
She is constantly fighting for survival as she refuses to comply with this pressure selling policy.
I am not sure if Lloyds are particularly bad at this or if all the banks are the same, unfortunately i suspect it's the latter!
Dad is 85 this year and recently I have had to help out with his financial matters.
He was paying £45 per month for his house and contents insurance with LLoyds TSB. (thats £540 per year).
When I asked him about this he said that he had been using LLoyds insurance for about 10 years. He had visited the branch after getting a leaflet in the post.
After that he had not really thought about it.
We immediately cancelled his policy and took out a new one elsewhere for a little over £150.
When asked by Lloyds why we were cancelling we explained the history. The lady at the call centre said that it was their policy to always offer the best cover available. This included contents cover up to £100K.
Now my dad lives on his own in an ex council house and collecting all of his belongings you would be lucky to make £1000 let alone 100K
She also said that they do not discount this service level.
So we said we wanted to cancel, suddenly she had other options we she could offer.
Not only have we cancelled, my dad has closed all of his accounts with Lloyds.
So the question is, is this a case of mis-selling?
My guess is that the bank gave him an initial low premium in the first year then jacked it up to the max.
Dad, 75 at the time, missed this and carried on paying in ignorance.
Or is this a case of buyer beware and tough luck dad for not spotting it sooner?
I know a few people who work in high street banks. They are under great pressure to sell insurance , loans and credit cards. One friend works in the Halifax and is constantly pressured to meet sales targets, irrespective of the suitability of the product to the client.
She is constantly fighting for survival as she refuses to comply with this pressure selling policy.
I am not sure if Lloyds are particularly bad at this or if all the banks are the same, unfortunately i suspect it's the latter!
0
Comments
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No mis selling, just a case of bad buying.
No business is under any obligation to offer the lowest prices for a service or product offered.0 -
Not only have we cancelled, my dad has closed all of his accounts with Lloyds.
Talk about overkill and probably causing an 85 year old unnecessary hassle.My guess is that the bank gave him an initial low premium in the first year then jacked it up to the max.
The banking side would have nothing to do with the insurance pricing of a third party insurer.So the question is, is this a case of mis-selling?
Not even close. Mis-selling is where an authorised individual gives incorrect information.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.0 -
Talk about overkill and probably causing an 85 year old unnecessary hassle.
Not even close. Mis-selling is where an authorised individual gives incorrect information.
Was at his insistance, feels he was dupped and is angry at that.
Feels he has been taken advantage of.
It's right that the seller in any deal is under no legal obligation to offer the best deal.
Is it also not right that there is a moral obligation to provide the most appropriate product for the customer, particularly vulnerable customers such as pensioners. Maybe I'm just being naive?0 -
Maybe I'm just being naive?
Yes you are.0 -
Is it also not right that there is a moral obligation to provide the most appropriate product for the customer, particularly vulnerable customers such as pensioners.
They provided advice 10 years ago. They are not mind readers. They dont know that he isnt happy. Bank products do tend to be the most expensive option. They would have been 10 years ago and he seemed happy with it then.Maybe I'm just being naive?
Extremely so I'm afraid.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.0 -
Most insurers will hike the premium if you don't shop around. If they get away with it in year one, it's worse in year two.
As you have found out, if you challenge them, all sorts of offers suddenly appear.
Vote with your feet.0 -
Thought so.0
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