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Adviser wins back cash in Sesame sale dispute

A former DBS IFA has won an out of court settlement from Sesame after the network accepted a complaint against the adviser, compensated the client and charged him for it despite having lost his files.

Two weeks after taking the action, the network then found the files, which the IFA says prove that he did not missell the endowment mortgage.

However, the company refused to refund the 5,422 that it had already taken from his commission account until now.

Former network member Richard Stock sold his cli- ent an endowment policy in 1988.

The client later contacted DBS claiming that the policy was a missale.

The company paid out a total of 5,422 to the client in June 2004.

Stock challenged the decision, asking how the network could find in favour of a client whose files they had not seen.

However, his commission accounts had been debited the amount without Sesame checking the files.

Stock says two weeks later, the network contacted him to say that they had found the files, which he claims contained sufficient fact-find and reasons-why documentation to justify the sale.

He says it took Sesame six months to reply to his complaint, at which point he threatened the network with legal action in the small claims court if they did not return the money.

Last month, two days before the court case, Stock says he received payment in full, including legal costs and interest, totalling 5,900.

Now a group of five former members, who are known to Stock, say they are considering a class action to challenge a clause in the DBS contracts which they believe allows Sesame to put too much of a burden on advisers.

Stock says: “Perhaps if everyone that was owed money by Sesame would take them to the small claims’ court, the network might start behaving.”

Sesame media relations manager Jared Aitken says: “We were right to uphold this complaint but we have taken a commercial decision to settle the case as we did not believe it merited the costs of litigation in this particular instance.”

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