Not upheld: Service failures generally complaint against Prudential Lifetime Mortgages Limited

Decision detail

Summary

Mr A1, as executor of his late father's estate, complained that a lifetime mortgage taken out by Mr A in 2009 was mis-sold because Mr A allegedly had dementia, and that Prudential made it difficult to obtain information both before and after Mr A's death. The mortgage was arranged by an independent broker and included a solicitor's certificate confirming Mr A's capacity and understanding. Prudential requested power of attorney before releasing information to Mr A1 while Mr A was alive, and later requested a copy of the will or grant of probate to verify Mr A1's authority as executor. Mr A1 repaid the loan in 2023 under protest. The ombudsman did not uphold the complaint, finding Prudential's lending decision was reasonable based on broker advice and solicitor certification, and its information handling procedures were standard practice.

The Ombudsman's reasoning

The ombudsman found that Prudential was not responsible for the suitability assessment as this was the broker's role. The solicitor's certificate provided independent confirmation of Mr A's capacity and understanding. Prudential's requests for power of attorney and probate documentation were standard practice to verify authority to act. The continuation of interest after Mr A's death was permitted under the mortgage terms and conditions. There was no evidence that Prudential was aware of any incapacity or that it acted unfairly in its lending decision or subsequent administration.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website