Is this right?

Robert_Sterling_3

gozomark wrote: »

do you mean they withdrew 2,000 but only gave her 500 of it, or they gave her 2,000 and withdrew a further 1,500 as penalty ?

ie is it a 75% penalty as you say (ie 1500/2000), or a 37% penalty (1500/3500)

I make it 43% approx not 37%;)

greenface

If his mum states that the advice it would cost her about £500 I would think the actuall total of £1500 would not be a acceptable guess.

dunstonh

Is 75% of the total withdrawal justifiable tho?

Yes. Its not a fee by itself but a combination of fee and the impact of the stockmarket drop.

The product she has is linked to the stockmarket. It goes in for x number of years and on maturity she gets either the value of the investment if it has gone up or her money returned with no loss if it has gone down.

However, if she withdraws the money at any point in the interim period then she loses the guarantee and will get the value of the investment, whether it is up or down. In November, the FTSE was 43% down from its peak. It recovered a little in December but fell back again in early Jan but has recovered a little since then.

So, she would have been hit by the drop in the FTSE and suffered a charge as well.

They said if she took out the rest(£6500) thats what she would get but if she leaves it in for a year shed get £7500.
She asked them to send out a statement and they said they would. She received a withdrawal form and no statement? She phone back up again to then be told they cant issue statements?

They dont issue statements on these types of plans. However, they can issue a surrender value upon request.

Do you think she could get some of her cash back since they wrongly informed her? I dont want her wasting time and money phoning them all the time to be told no

Its a borderline case. Based on what you have said, they have not made her aware of the amount she could lose by making a partial/full surrender. As she asked first and was not told correctly, then that would indicate bad advice. Had she done it off her own back, then she wouldnt have a case. As she enquired and wasnt told the facts and the potential shortfall, she may well have a case.

I think it is worth making a complaint based on what you have said. They should have made her aware that the value could be a lot lower than what she invested.

xxlaurissaxx

greenface wrote: »

If his mum states that the advice it would cost her about £500 I would think the actuall total of £1500 would not be a acceptable guess.

HER! :rolleyes:

xxlaurissaxx

Dunstonh - Thank you so much. I will get her to complain and let you's know how she gets on.

Thanks again

xLx