'Arrogant' Halifax under fire

The bank, expected to report profits of more than £4bn in early March, has one of the smallest teams among endowment providers working on mis-selling complaints. It increased the number by 50 to 100 in December but many complainants are still having to wait months for compensation.

Halifax's tardy approach towards compensation, first highlighted in Financial Mail this month, contrasts with other companies.

Standard Life, which is dealing with 700 mis-selling complaints each month, has 235 people working exclusively in this area and aims to make compensation payments to customers within five days of a decision.

Norwich Union, dealing with 1,200 mis-selling complaints per month, has more than 300 employees working on claims. It aims to pay compensation within three weeks of an offer being accepted.

Louise Hanson, head of campaigns at consumer group Which?, says unnecessary payment delays are causing misery for thousands of endowment victims.

'There is nothing to be gained by treating customers poorly,' she says. 'Companies such as Halifax, which scrimp on resources, are making a big mistake. An endowment shortfall is one of the biggest worries and causes of stress for homeowners.

'Treating the issue lightly or ignoring customers' concerns is shameful and companies which do this will alienate and lose customers.'

Full story This is money

Feb 1, 2005
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