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Sesame accused of dragging its feet on payouts

Claim-chaser Brunel Franklin has accused Sesame of dragging its feet over paying out compensation to customers.

Brunel Franklin says it has over 150 cases outstanding against Sesame, with clients waiting up to 10 weeks to receive payment. It says it was told by the Sesame claims team that there is a six to eight-week delay because of a backlog in the system.

The FOS says companies have 28 days to pay redress to customers but can be given longer in complicated cases.

A Brunel Franklin spokesman says: “What is a reasonable time to write out a compensation cheque? We would argue that it should be possible in a few days. They know how much they are going to have to pay out, they have earmarked the funds and all they need to do is post the cheques.”

Sesame has admitted delays but says Brunel’s claims are exaggerated.

The firm, which revealed earlier this year that it was receiving 1,000 complaints a month, says it has recruited new claim-handling staff to cope with the volume but is experiencing delays of around four weeks while it trains these staff.

Spokesman Jared Aitken says: “On average, these claims are settled quicker than has been suggested but obviously there may be some isolated cases. There are delays while we get new staff up to speed but we are addressing this.”

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Jeremy Pearson is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. Many parents value the standard of education offered by […]

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