Upheld: Service failures generally complaint against Hub Financial Solutions Limited
Financial Ombudsman decision DRN-5036358 of 2024-10-17T00:00:00+00:00. Service failures generally complaint against Hub Financial Solutions Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5036358 |
|---|---|
| Decision date | 2024-10-17T00:00:00+00:00 |
| Firm | Hub Financial Solutions Limited |
| Product | Pension |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | HUB must calculate and pay: (1) Past loss - difference between notional Firm A payments and actual Firm B payments from 20 February 2024 to decision date, net of 20% tax, plus 8% simple interest per annum; (2) Future loss - purchase price of annuity equal to the difference between current and notional Firm A payments, minus highest marginal tax rate deduction; (3) Tax free cash interest - 8% simple interest on tax free cash from 16 January 2024 (when it should have been paid) to 26 January 2024 (when it was paid); (4) Compensation of £400 for unnecessary appointments and worry; (5) 8% simple interest on compensation if not paid within 28 days. |
Summary
Mr J complained about HUB Financial Solutions Limited's failure to send an application pack following his 6 December 2023 decision to purchase an annuity, citing staff illness as the reason. This delay forced Mr J to attend additional appointments and ultimately purchase an annuity with lower annual income (£12,069.36 from Firm B) compared to the original quote (£12,366 from Firm A). HUB offered £250 compensation, but the ombudsman found this insufficient. The ombudsman upheld the complaint and ordered HUB to calculate and pay past loss, future loss, tax free cash interest, and £400 compensation, with 8% simple interest applied to various elements of the redress.
The Ombudsman's reasoning
The ombudsman found that HUB's failure to send the application pack on 6 December 2023 due to staff illness was not a reasonable excuse, as firms should have contingency processes. The customer would have proceeded with the Firm A quote (£12,366 annual income) had the pack been sent, but instead received a lower income annuity from Firm B (£12,069.36). The ombudsman proceeded on limited information due to HUB's non-cooperation with information requests, which is permitted under DISP rules. The £250 offered by HUB was insufficient given the repeated unnecessary appointments and customer stress.
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