Upheld: Service failures generally complaint against Golden Charter Limited
Financial Ombudsman decision DRN-4511428 of 2023-12-21T00:00:00+00:00. Service failures generally complaint against Golden Charter Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-4511428 |
|---|---|
| Decision date | 2023-12-21T00:00:00+00:00 |
| Firm | Golden Charter Limited |
| Product | Life / income protection |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | Golden Charter must: (1) arrange for a new Guarantee to be issued to Miss C by a funeral director in her local area at no additional cost; (2) where possible, offer Miss C a choice of funeral directors from willing providers; (3) pay Miss C £25 compensation to cover incidental expenses (photocopying, postage, phone calls) incurred in dealing with the matter. |
Summary
Miss C purchased a funeral plan from Golden Charter in 1993 and completed payment in 1994. In August 2023, she requested to change funeral directors after moving house. Golden Charter arranged an alternative funeral director but then demanded an additional £1,642 before transferring the plan, claiming the change constituted a new agreement. Miss C complained that her plan was guaranteed with no additional costs. The ombudsman upheld the complaint, finding that Golden Charter's own marketing leaflet and terms explicitly promised no additional cost for changing funeral directors, including when moving house, and that the firm was responsible for arranging a new guarantee at no cost to the customer. Golden Charter was ordered to secure a new funeral director at no additional cost and pay £25 compensation for incidental expenses.
The Ombudsman's reasoning
The ombudsman reviewed the marketing leaflet and terms and conditions provided to Miss C and found explicit promises that there would be no additional cost to change funeral directors, including when moving house. The leaflet stated 'there will be no more to pay, no matter how much costs may rise in the future' and 'Protection: The Plan Holder is therefore protected at all times...ensuring that the Plan Holder's arrangements will be fully honoured with no extra cost.' The terms required Golden Charter to procure a new Guarantee from a new funeral director but contained no provision allowing additional charges to customers. The ombudsman concluded Golden Charter had acted unfairly in seeking the additional £1,642 payment.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Golden Charter Limited, all decisions | 14 | 11% |
| Service failures generally, all decisions | 32,767 | 33% |
| Life / income protection, all decisions | 10,661 | 20% |
Source
Read the original decision on the Financial Ombudsman Service website