The borrowers took out Zurich’s bond to buy an off plan property with a large developer.
The Zurich Property Deposit Guarantee Bond allows purchasers to buy an off plan property and pay a premium for Zurich to delay a cash deposit until the property has been completed.
This is a safeguard for the would be purchaser as their money and if the developer was to go bust they would only lose the small premium they paid.
But Zurich discovered that the bonds had not been activated and the reason was property firm Instant Access, had been placed into administration on April 29, leaving the borrowers high and dry.
But as a good will gesture Zurich chose to reimburse the borrowers.
The premiums returned ranged between £900 and £2,500.