Not upheld: administrative delay in redemption process and complaint-handling delay complaint against Prudential Lifetime Mortgages Limited
Financial Ombudsman decision DRN-6139696 of 2026-04-28T00:00:00+00:00. administrative delay in redemption process and complaint-handling delay complaint against Prudential Lifetime Mortgages Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6139696 |
|---|---|
| Decision date | 2026-04-28T00:00:00+00:00 |
| Firm | Prudential Lifetime Mortgages Limited |
| Product | lifetime mortgage |
| Claim type | administrative delay in redemption process and complaint-handling delay |
| Outcome | Not upheld |
| Remedy | Prudential offered £250 compensation for distress and inconvenience caused by complaint-handling delay and £25 for telephone call costs, totalling £275. The ombudsman left it to Mr and Mrs E to decide whether to accept this compensation. |
Summary
Mr and Mrs E complained about delays in redeeming their lifetime mortgage with Prudential, specifically regarding the time taken to receive the redemption statement and subsequent delays in fund release due to AML checks by Prudential's bank. They were also dissatisfied with Prudential's complaint-handling process, which exceeded the eight-week regulatory deadline by sixteen days. Prudential offered £275 in compensation. The ombudsman found the redemption statement was issued within reasonable timeframes, the AML checks were a regulatory requirement outside Prudential's control, and the back-dating of payment was appropriate. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman found that Prudential's three working day service standard for generating the redemption statement was reasonable, and delays in Royal Mail delivery were not Prudential's responsibility. The AML checks conducted by Prudential's bank were a regulatory requirement outside Prudential's control, and back-dating the payment to the date funds were received by the bank was appropriate. The complaint-handling delay was addressed through compensation, though the ombudsman noted complaint-handling is not a regulated activity.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Prudential Lifetime Mortgages Limited, all decisions | 12 | 8% |
Source
Read the original decision on the Financial Ombudsman Service website