Not upheld: Service failures generally complaint against Hub Financial Solutions Limited

Decision detail

Summary

Mrs C's representative complained about HUB's service in arranging a care annuity between November 2022 and September 2023, claiming a six-month undue delay when HUB had initially estimated three months. HUB terminated the relationship on 3 August 2023 due to internal staffing issues but introduced the representative to Firm E, who arranged the annuity for the same price. The ombudsman found HUB caused only one month of undue delay, with other delays attributable to the representative and annuity providers. HUB's compensation offer of one month's annuity income (£2,723) plus 8% interest and £250 for distress was found fair and reasonable, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while HUB could have completed some steps sooner, the three-month timescale was merely an estimation and not a guaranteed timeframe. Significant delays were attributable to other parties beyond HUB's control, including the representative's late acceptance of the updated quote and the agreed delay for Mrs C's birthday. HUB's termination of the relationship was permitted under its terms of business, and HUB mitigated harm by introducing the representative to Firm E and providing previously gathered information. The ombudsman concluded HUB caused approximately one month of undue delay, not six months, and that HUB's compensation offer was fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website