ProtectionJan 3 2019

Lifesearch fires adviser over shocking insults

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Lifesearch fires adviser over shocking insults

The client, referred to as Mr O, had just ended a phone call with his adviser who accidentally re-dialled his number without realising it.

Mr O then heard the adviser's conversation with his colleagues, which included the intermediary swearing about and insulting him plus making offensive remarks about his attitude during the earlier call and about his medical history.

The adviser's colleagues could be heard laughing and commenting in the background.

Extremely upset by what he had heard, Mr O called Lifesearch to complain.

The company investigated and found the outburst Mr O had heard was recorded on its call recording system.

Lifesearch agreed what Mr O heard was unacceptable and the intermediary’s chief executive contacted him to personally apologise and explain the adviser would be immediately dismissed for gross misconduct.

Mr O had applied for insurance through Lifesearch Partners Limited and was told the insurer who was first recommended wouldn’t accept him because of his medical history.

Lifesearch's adviser had rung Mr O to discuss this and suggest making an application to an alternative provider.

At the start of the call, Mr O was annoyed about delay and there was some discussion about alternatives.

Mr O made it clear he was short of time because he was at work, so the adviser agreed to email alternative quotes and the call ended after about three minutes before he was rung again.

Lifesearch offered to pay for a night’s stay in a hotel, and later offered Mr O £250 compensation.

Through his solicitors Mr O, who claimed the incident had left him stressed, suffering from insomnia and on antidepressants didn’t accept that offer, and said he intended to take legal action.

Lifesearch instructed its own solicitors, which offered Mr O £1,500 for compensation and his costs, subject to him agreeing to sign a non-disclosure agreement.

But Mr O didn't agree to that and complained to the Financial Ombudsman Service.

He demanded £25,000 compensation but while ombudsman Simon Pugh upheld the complaint, he ordered Lifesearch to pay £2,000 instead.

Mr Pugh said: "The content of the conversation Mr O overhead was, in my view, shocking, offensive and utterly appalling. [The adviser] swore repeatedly, violently and extremely strongly, about Mr O. He insulted him. He mocked his medical history.

"He even expressed the view that Mr O ought to have committed suicide in the context of what he’d learned about Mr O's medical history. It was inexcusable. This conversation should never have taken place.

"Even had Mr O never heard it, it would have been wrong to have insulted him, shared his medical history and mocked him in this way. But Mr O did hear it. He listened to everything [the adviser] said about him, and heard the laughter of [the adviser's] colleagues. He should never have been put in this position.

"It only offered compensation of £250 at first, which I don’t think comes close to recognising the upset Mr O experienced. It did increase that offer – but only after Mr O got his solicitors involved, and only on condition he agreed to sign a non-disclosure agreement.

"This suggests to me that its focus was as much on the protection of its reputation as it was on putting things right for its customer.

"I think it's arguable Mr O has suffered pain and suffering as well as distress. His GP has prescribed anti-depressants for stress and insomnia suffered since this incident. That seems to me to amount to a psychological injury causing pain and suffering.

"The abuse he suffered was appalling and the comments made were shocking and disturbing. It was incredibly upsetting at the time and it’s led to medical issues since. It's made Mr O much warier about sharing information about himself and so there’s an ongoing impact on his ability to manage his financial affairs.

"This was an appalling incident. It should never have happened. I am pleased that Lifesearch has taken steps – through internal disciplinary measures and staff training – to try to ensure it won't happen again."

emma.hughes@ft.com