Wednesday 16th January 2008
Some 407 with-profits annuity holders at Equitable Life have achieved a settlement with the pensions provider.
The result follows legal action which began in 2004 and stemmed from allegations of mis-selling of policies in the 1990s.
Among the claims of the account holders were accusations that the complexities of the products were not adequately outlined at the time of sale.
But the financial services provider has now agreed a settlement, although the details of any pay-outs remain confidential.
Law firm Clarke Willmott explains why the process has taken until 2008 to be resolved.
Robert Morfee, a partner at the legal practice, comments: "The claims were exceptionally complex and involved a detailed analysis of a very intricate financial product and the regulatory process."
The delays resulting from this detailed analysis could come as cold comfort for some families.
With the average age of the claimants at 74, a number of those involved in the case have died during the deliberations.
Others dropped out during the proceedings as legal costs began to mount and the risk of losing the case became too great.
In 2000, Equitable Life stopped taking on new customers, with its pensions annuities business now handled by Prudential.
Related news this week finds bank charge claimants facing the start of a legal process as the Office of Fair Trading (OFT) test case on the issue is due to commence.
However, this could also prove a lengthy procedure, with the OFT revealing that the case has already been delayed despite not yet having begun.
A statement from the office explains that the postponement is "due to the judges prior commitments running over".
The OFT adds that it hopes proceedings might be underway before the end of the week.
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