Terminal Illness Campaign Report Exposes Potentially Fatal Scandal.
Is this a Genuine Fatal Error or
Ten Year Cover Up by the Financial Ombudsman Service?
The latest Terminal Illness Campaign (TIC) report uncovers alarming evidence of a long term failure or cover-up between the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS). This revelation comes as Chancellor Rachael Reeves pushes to improve investment by making major changes to FOS consumer protection services.
TIC published its report, “Dying for a Payout,” in January 2022, the FCA responded with a review in October 2023.
The review acknowledged vulnerable (terminally ill) consumers could be seriously harmed by a common insurance term which may not be fit for purpose, but then failed to give insurers the decisive yes or no legal direction that would have immediately protected them.
The FCA told TIC that their actions were proportional and sufficient, given their view that an insignificant number of consumers had been impacted. That ‘insignificant number’ was obtained, from statutory data provided by the FOS.
TIC investigated the FOS data and discovered a minimum but significant total of 775 ‘hidden’ complaints about terminal illness insurance had been made since their public records began in 2013. The FCA acknowledged that the true figure is much higher because many terminally ill claimants were too ill to formally complain.
Despite an average of 77 potentially fatal complaints per year since 2013, none have been mentioned in any FOS annual or quarterly public reports. Yet, during the same period the FOS was able to identify less than 10 complaints about harmless products such as golf and photographic equipment insurance.
TIC was unable to determine whether this was an error or strategic cover up, so on April 5, 2024, published a comprehensive report to HM Treasury, the FCA, the FOS, and the Equality and Human Rights Commission.
The report , urged the election of an independent body to investigate this serious issue.
To date, only (HM Treasury) and (FCA) have replied; neither has taken decisive action.
As a result, millions of consumers remain at risk, facing the devastating possibility of being forced to consider suicide or withhold treatment to obtain the protection they had put in place for their loved ones.
Quote: “I am deeply concerned that the FCA and other stakeholders have not taken the necessary steps to protect and compensate vulnerable consumers. Our evidence clearly shows that either a statutory reporting failure or cover-up has occurred over a period exceeding 10 years. I am also worried that the proposed restructuring of the FOS could overshadow and reset the serious harm done to thousands of vulnerable consumers who have been ignored for a decade” – Peter Bull, Campaign Lead, Terminal Illness Campaign.
Could you cope with a terminal illness diagnosis and major financial meltdown? Even worse encouraged to consider suicide? The problem is hidden from the average consumer until it is too late. Thousands have been effected; millions are unnecessarily at risk.
We are campaigning to stop it.