Upheld: Service failures generally complaint against Hub Financial Solutions Limited
Financial Ombudsman decision DRN-4956013 of 2024-12-17T00:00:00+00:00. Service failures generally complaint against Hub Financial Solutions Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-4956013 |
|---|---|
| Decision date | 2024-12-17T00:00:00+00:00 |
| Firm | Hub Financial Solutions Limited |
| Product | Pension |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | HUB Financial Solutions Limited must: (1) Calculate the net annuity income that would have been generated using the original quote and compare to actual amounts paid, representing past loss; (2) Pay Mr T a lump sum equal to the past loss; (3) Amend Mr T's annuity going forward to the original quote value; (4) If unable to amend, calculate the purchase price needed to buy an annuity for the difference and pay this amount minus a deduction for marginal income tax; (5) Pay all lump sum compensation within 28 days with 8% simple interest if late; (6) Pay £150 compensation for distress and inconvenience. |
Summary
Mr T engaged HUB to help establish an annuity using his pension funds. L&G provided a quote expiring 5 December 2023, but HUB failed to promptly provide required clarification information to L&G, sending it from a personal email address that was not received and containing incorrect information. HUB did not follow up until 15 December 2023, after the quote had expired. By the time funds were received in January 2024, the annuity rate had dropped significantly. The ombudsman upheld the complaint, finding that had HUB provided correct information promptly via a proper email address, the funds would have been received before the quote expiry date. HUB was ordered to compensate Mr T for the loss caused by the lower annuity rate, amend the annuity going forward, and pay £150 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that had HUB provided the correct information to L&G on 9 November 2023 via a properly received email address, L&G would have been able to request the funds immediately. Using the actual timeline of how long it took L&G to request and receive funds after clarification was provided in December 2023, the funds would have been received before the annuity quote expiry date of 5 December 2023. L&G confirmed it would have held the quoted annuity rate upon receipt of funds. Therefore, HUB's failure to promptly provide correct information via a receivable email address directly caused Mr T to lose the benefit of the original annuity rate.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Hub Financial Solutions Limited, all decisions | 41 | 29% |
| Service failures generally, all decisions | 32,767 | 33% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website