Upheld: Service failures generally complaint against Oakleafe Group Limited

Decision detail

Summary

Mrs H engaged loss assessor Oakleafe in May 2024 to help with a claim for fire damage to her rental property, hoping to use Oakleafe's contractor network to complete both insured and private works. Oakleafe negotiated a settlement of £123,702.90 but accepted the insurer's offer in January 2025 without clear documented agreement from Mrs H, relying on an unrecorded phone call. When Mrs H later discovered the settlement was insufficient to cover the insured works (approximately £100,000 needed versus £78,318 offered), she requested the funds be released in October 2025, but Oakleafe refused. The ombudsman upheld Mrs H's complaint, finding Oakleafe failed to communicate adequately about settlement risks, accepted the settlement without proper authorization, and wrongfully withheld funds, causing her considerable distress.

The Ombudsman's reasoning

Oakleafe failed in its duty to communicate adequately with Mrs H about the risks that the settlement would be insufficient for the insured works, despite being aware of this potential issue when taking on the claim. The firm accepted the insurer's settlement without clear documented agreement from Mrs H, relying on an unrecorded phone call. Oakleafe then failed to release funds when explicitly requested, causing Mrs H considerable distress and preventing her from progressing repairs. The firm's poor communication and lack of transparency throughout the process breached fair dealing standards.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website