An agreement has been reached by two law firms which have bought time for over 500 former Equitable Life policyholders. Irwin Mitchell and Class Law say that their policyholder clients are closer to receiving compensation.
Equitable's lawyers have reassured the two firms that the insurer may set up a compensation scheme, if a forthcoming report indicates that people have suffered a loss as a result of mis-selling. Equitable Life commissioned a report from B & W Deloitte in March this year to look at claims by non-guaranteed annuity rate policyholders.
They will be assessing whether the policyholders were mis-sold policies because they were not made aware of the liabilities when they initially bought their investment.
Thousands of policyholders could benefit from compensation, if the report proves that mis-selling has occurred.
The compensation scheme would be set up in order that claims could be resolved without the need to go to court.
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