Axa Sunlife. Ombudsman letter???

bo_drinker

As I posted here before I took out one of the cashbuilder plus plans in 2001. After learning how it all went pear shaped for others on here I set about the complaints procedure. To cut a long story short I have had the sob story letter from them as I took it out outside the period where folk got all their money back and have been told "tough" in a nutshell. But if I want to I can still talk to the ombudsman. Has anyone here done this with any success. I have had a surrender value of 2880 ish and have paid in over 4k. Thanks in advance.

dunstonh

As you bought this without advice then you have far less consumer protection than had an adviser been involved. You cannot complain about being mis-sold as you were not. The only reason there has been success by some is the period AXA made the mistake on the figures. That gave people in that period a lucky get out which they wouldnt normally have.

So, if you go to the FOS you are going to have to have a good reason. What did you have in mind?

bo_drinker

Just wondered how an "investment" of 4k plus is worth 2.8 now. It is a clear overheads issue. In hindsight it would have been safer under the mattress obviously. Even though I have frozen the direct debits they still question me monthly why am I not throwing good money after bad. I also wonder how many others out there are clueless as to what is happening with their money, thinking that one day they will be quids in. Time to take the money and run I think

dunstonh

Just wondered how an "investment" of 4k plus is worth 2.8 now.
..snip..
in hindsight it would have been safer under the mattress obviously.

This product was obsolete in 1995. You bought it 2001 long past its sell by date. However, you chose to buy it and that is your problem. You were not advised to buy it.

Often with these plans surrender is an expensive option and keeping it is the best option. Even if they are naff. Surrender penalties reduce over time and there does come a point where it is worth getting out early but that is typically not in the short term.

bo_drinker

I am past the point where I should be in pocket as it were according to their paperwork. I am only going by the old posts on here where a lot weighed in early as it was not looking good. And besides they don't advertise anymore, the Sundays were full of them back in the day. Look what happened to the miss sold endowements etc. Thanks for the reply but I don't fancy taking a chance especially as I should be seeing a profit now and it would be a gamble for a few years chasing a horse that was put down in the 90s it seems ???

baby_boomer

I agree with dunstonh that you'd be wasting your time, the Ombudsman's and Axa's by trying to complain.

Unlike dunstonh, I would be very surprised if you lost out by cashing in, but you must do the sums yourself.

1) Ensure you've got an up to date surrender value.
2) Ask Axa for a projected maturity value if the underlying fund grows by 6% (it is very unlikely to grow by as much as this IMHO but it gives you some sort of benchmark).
3) Work out what rate of interest you need to get past the Axa quote if you invested
a) the lump sum and b) the monthly contributions you will stop if you closed the plan now.
You can do this by using the savings calculator on

This is Money


Good luck, and please report back with the result & your final decision .

dunstonh

Unlike dunstonh, I would be very surprised if you lost out by cashing in, but you must do the sums yourself.

I'm playing it safe and compliant as we dont know the figures. You have to factor the cost of the surrender penalty. Lets say its £2000, then any alternative would have to make up £2000 before it even starts to turn a profit. The way surrender penalties work, it could be that there is no surrender penalty this time next year because its gone past the point they remove them or they could reduce it by 25% or whatever.

Once you have the figures its easy to work out. Without figures you are just guessing what option is best. I do have a gut feeling though and it would be the same as most of you.

bo_drinker

According to the original paperwork I should be in a safe territory now and not losing out. But this is not the case I am over 1200 down, . How can I trust them when the figures do not add up. :mad:

dunstonh

How can I trust them when the figures do not add up

The surrender penalties and charges are based on fact. Example illustrations are based on hypothetical information. As long as you stick to the factual data then you can trust it.

opinions4u

From memory, the FTSE peaked around 2001 and is now around 20% lower. Deduct charges for life cover, administration and shareholders and you have what you have - a poor value investment that you selected.

Can't see how you will succeed with the Ombudsman.

I'm in a similar boat with a mortgage endowment I bought without advice. It's tough luck.