A former DBS member is taking Sesame to court over an indemnity clause in his contract.
Richard Stock is suing Sesame for debiting 1,600 from his account to compensate for an alleged endowment missale.
Sesame is defending its stance and citing clause 9.1 in its contract which says “in the event that [DBS] suffers or pays any claims of whatsoever nature… the associate shall indemnify the company” against any financial losses such as compensation bills.
Following legal advice, Stock is challenging Sesame on the clause because he adhered to its compliance procedures, there was no fraud or dishonesty and the clause is too vague.
Stock has received two out-of-court settlements totalling 9,100 from Sesame over other alleged endowment missales.
Sesame says it did not go to court over the first two claims but will now defend the clause.
Stock says: “I cannot speak to the Financial Ombudsman Service because I am neither the claimant nor the defendant, so I have no recourse. I am now directly challenging Sesame.”
Sesame media relations manager Jared Aitken says: “Mr Stock wanted us to indemnify him against all future claims, which we believe is unreasonable as we have no way of knowing if any further complaints will be forthcoming. We look at each case on an individual basis and felt it necessary to pursue this.”