Slow Endowment Surrender

robertg

Hi,

I decided about a month ago to surrender my two endowments, with Friends Provident and Norwich Union as I nonger needed them and their combined value was just enough to cover the settlement figure on my Nationwide Trust loan.

I got surrender values on 11th February and sent letters to both by recorded delivery the same day.

I have proof that they were both delivered the next day, 12th February.

Friends Provident were really quick and I had a cheque within the week, although this was slightly less than expected as the value had apparently fallen from 11th to 12th February.

Norwich Union have been worse than useless. I gave them a week and called them up. They said they would need to send me a form to complete. I have since phoned them two or three times and been fobbed off. I have kept notes of the times, dates and content of each call. I last called this Monday and was told they had failed to deal with my letter when first received, mislaid or something but the form had apparently been sent out on 28th February and I should allow 5 to 7 days to receive it.

It is now 5th March, almost a month since I wrote to them and I havent even received a form from them.

I have two issues really.

Firstly, the markets have fallen through the floor since I first wrote to them and I suspect the value of the policy has taken yet another big hit.

Secondly, Natiowide will add another months interest to my loan on 11th March. I already have the funds from FP on deposit but need the NU money as well to clear the loan.

I don't see why I should be out of pocket for the drop in value and an extra months interest on the Nationwide loan just because Norwich Union are completely incompetent.

I did mention this when I spoke to them on Monday and was advised to put in a written complaint when I sent the forms back but I still haven't received them yet!

Can anybody please advise me on whether I may be entitled to any compensation or how I can get this sorted out quickly?

Many thanks!

EdInvestor

robertg wrote: »

I did mention this when I spoke to them on Monday and was advised to put in a written complaint when I sent the forms back but I still haven't received them yet!

Put in the complaint now, don't wait for the forms. It will cost them 500quid if you have to take it to the Ombudsman, regardless of outcome, and that's usually enough to get them moving.

dunstonh

NU normally honour the value on the date the form was received. At least they have on the ones I have done.

Can anybody please advise me on whether I may be entitled to any compensation

Typically the FSA allow upto 30 days unless there is an issue outside of the insurers control (such as assignment to a lender). The usual settlement is surrender value plus interest. Not compensation. You should put a complaint in as the legacy policy handling at NU is a disgrace. Especially when you compare it to the much better modern business handling.