View more on these topics

&#39Line being drawn under dual-pricing complaints&#39

Halifax and Cheltenham & Gloucester say the Financial Ombudsman&#39s rejection of complaints about their dual-pricing policies shows the arbitrator is trying to draw a line in the sand for future complaints.

Last week, the ombudsman threw out a case of a couple tied to C&G&#39s standard variable rate of 7.25 per cent who applied to be transferred to the lower variable rate of 6.35 per cent after it was withdrawn in September last year.

The ombudsman says C&G&#39s commercial decision did not breach its contract with these customers.

The ombudsman is calling this “lead case B” as it can be used to help decide the outcome of similar complaints.

This follows its lead case A when it adjudicated in June in favour of a woman who had been tied into C&G&#39s higher SVR while the lower rate was available between May and September.

Last week, the ombudsman also rejected a series of claims from Halifax customers who first complained about its dual pricing after the lender&#39s cut-off date of March 4. Halifax says it supports the ombudsman&#39s clarification in its briefing note that it will not “ordinarily interfere” with “legitimate commercial judgements.”

Halifax press officer Jason Clarke says: “This puts a line in the sand and gives clarity to how we interpreted its original decision in January to take a tiered approach to compensation payments.”

Cheltenham & Gloucester spokeswoman Susan Knight says: “We are delighted that the ombudsman last week accepted our decision. It appears that the ombudsman is trying to draw a line under the complaints.”

FOS spokeswoman Iris Baker says: “The briefings show the up to date picture on Halifax and Cheltenham & Gloucester.”

Recommended

Do the fairies pay for commission?

I will try to squeeze three points into a short letter. First, Julian Stevens&#39 mortgage idea (Money Marketing, August 15) is seriously flawed.A repayment mortgage repays capital from day one. I did a quick illustration and 15 years into a 25-year mortgage on a repayment basis, 40 per cent of the capital has been repaid […]

Raising standards consults on mergers

If a merger were to take place between two life offices both having the Raising Standards Quality mark, they could retain their kitemark according to proposals published by the scheme this week.But if a life office were to take over or be bought by a rival without the quality mark, the other life office would […]

Lenders &#39staggered&#39 by FSA distribution claim

Lenders and brokers have rejected the FSA claim that less than half of all mortgages are arranged through intermediaries, saying it is a minimum of 50 per cent of all loans. In CP146, The FSA&#39s App-roach to Regulating Mortgage Sales, the regulator states that while requiring independent mortgage intermediaries to advise on the whole of […]

Improvement to Scot Eq&#39s online pensions admin

Scottish Equitable is adding a faster and more accurate payment facility to its web-based administration system.Part of the SmartScheme system, the SmatPay facility allows monthly contributions to be set up via the web either electronically from most types of payroll system or by entering information on to a web page. Scottish Equitable says contributions can […]

Partied out and penniless

December has left me destitute. My piggy bank lies broken and empty, my lunchtime meal deal feels like an extravagant expense and I’m down to the Bountys in my box of Celebrations. But I won’t mourn my dearly departed pennies. Between buying gifts for loved ones (then deciding to keep them for myself) to treating […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com