Mis-sold Home and Contents / Failed duty of care

ibelongtoguy

Not posted in a very long while but appreciate being pointed in the right direction.

I believe my parents were mis-sold their home and contents or at least Lloyds did not take a duty of care to ensure the policy was appropriate. Paying £75 a month for a 3 bed semi and things on the policy like 'unlimited' accidental damaged. Contents of garage and outbuildings at £5k (they have 1 potting shed) and other ridiculous cover. I think the policy was taken out in 2008.

It has only come to light because my dad passed away and this was one of the DD that went out of their joint account but that my Mum didn't have anything to do with (although it's in joint names). We asked them to resend the policy and I looked at it.

Do we have a template letter to complain anywhere? Anyone able to share experience of this at all?

I'm livid on their behalf!

[Deleted User]

Why do you believe it was mis sold and when?

Browntoa

Auto renewal , letter sent each year to say "ring us if you don't want to renew"

Letter ignored , insurance have no "duty of care" to do anything

ibelongtoguy

So if the policy was taken out in person by my dad and they didn't ask the right questions at the time - is that not a duty of care to ensure you are taking the right product for your circumstances? I understand the rolling over year on year - my parents never would have shopped around and just accepted the increase - but the initial policy is wrong?

BorisThomson

The initial policy covered their needs. It's usual for cover amounts to be higher than needed, they're just standard amounts. A bespoke policy would offer less coverage but cost more.

Your complaint seems to be based on poor value. That is annoying, but not misselling.

I'm doubting it was even an advised sale. Do you have documentation to this effect?

Mr.Generous

Sounds to me like they took advantage of your Dad, old people can be scared by salesman telling them how much x,y and Z would cost. £75 per year for careful unlikely to claim pensioners in a 3 bed semi sounds more like it.

ibelongtoguy

Thanks for your comments and suggestions.

What do you mean regards and 'advised sale'. It was taken out in branch (as indicated by the policy reference code) but no we don't have any paperwork unfortunately.

Mr Generous - he would only have been 60 in 2008. Whilst not an old man then he was not financially savvy and would have taken the policy they offered him where he held his current account.

So while it might not be mis-selling, can anyone point me in the direction of a template letter/those who have been mis-sold H&C so I can see their outcomes. Many thanks.

BorisThomson

If you look on the FOS Decisions website you can search for complaint outcomes.

lisyloo

What do you mean regards and 'advised sale'.

You can either buy financial products direct yourself or you can get advice (this has to be paid for often by commsion).
If you buy a product direct yourself e.g. over the internet then it's YOUR responsibility to buy the correct product. This is often called "execution only".
If you get advice from someone being paid then they do have an obligation to make sure it's suitable and keep records to prove that.

In addition there are some people who advise of the whole of the market and some people who are tied to one companies products. If your dad went to a bank then it's likely they were tied to their own products. You dad would have probably received have "terms of business letter" which made it clear they were advising only on their own products and he probably signed something to say he understood that.

The limits you mention are probably part of standard policy rather than bespoke. It sounds like it was poor value but customers are entitled to insure themselves to the hilt if they wish.

to ensure you are taking the right product for your circumstances?

In what way is it not appropriate given that the limits are probably standard numbers?
An example of inapropriate would be paying an optional extra for say bicycles or outbuildings if you didn't have any to insure, but accidental damage is voluntary. Which aspects in particular do you think are mis-sold?

I am unsure if you can make a formal complaint on behalf of a deceased person or in your mothers name (perhaps someone can comment)
There is a facility to get all details on your account by asking for a subject access request under the data protection act (max charge usually £10). Again I'm unsure if your mother could do this.

It's not clear to me what you think is mis-sold although it doesn't look like it was the best value. If your dad had gone to a mercedes shop for a car rather than shopping around then he wouldn't get the best value car but there is nothing wrong with Mercedes selling expensive cars and similarly banks can sell policies that are not the best value if they like.

On that basis can you clarify what you think was inaapropritae for his needs as oppposed to just expensive/overpriced.

ibelongtoguy

Thank you all for your advice.

ibelongtoguy

Thank you lisyloo.

That all makes sense thank you.

Yes I believe there are areas of the policy that were not (and have never been) needed. Like the outbuildings and garage and personal item cover. They don't own anything of value although I understand this an up-to value.

It is a joint policy (in joint names though his name was removed already) although my Mum doesn't know anything about it/cannot recall.

I will write to the bank and ask how the original policy was taken out (in branch we assume) and whether it was attached to any mortgage at the time and in the meantime move mum onto a cheaper policy.

Thanks again.