Can anyone help my mum?

purplemoon

(this is not an area of this site that I am familiar with...!)

My mum has got herself into an awful situation. She began to lend a sick friend money to get to hospital and back some time ago. Through his chaotic lifestyle he had temporarily lost his entitlement to benefits and had no income (although there were still occasional B.A. payments) and no transport funding from the NHS. As this went on it grew to the thousands and now he owes her over 20k.

He had monies in a ISA (we think, the policy isn't to hand, plus insurance- my mum believes ita a bond thing cos in £500 units- does this make sense?) Yes, the B.A. know about this, he is entitled. Reluctantly (he wanted to wait til August this year to get a bonus!) he made efforts to get the money out last year. This is an edited letter from him written by my mum:

"I have struggled for nearly 5 months to receive the monies which I invested via Alliance and Leicester over 4 years ago [it was moved onwards to L&G].

When I spoke with you in early September 2005 I was told that it would take two to three weeks to be paid. I was later told that since the funds were not managed [he received some bad advice...] that they were hard to trace.

Eventually possibly 2 months ago I was told the amount which I would receive (being approximately £21,770) and that I would be able to withdraw this shortly.

I was later asked to send you authorisation to inspect my current account which I did and was told that my money was now to be released - however it wasn’t.

This is causing me a lot of stress and hardship which I can well do without as I have explained to you that I am receiving lengthy hospital treatment. It is also putting a great strain on my friendships as I am having to borrow for transport to hospital and other expenses. Friends are loaning to me and getting into debt themselves to help me."

Actually there is only 1 friend loaning him the money. My mum was in debt for many months before selling her house in January. She took a quick sale (perhaps losing much money). She now wants to buy again but without this money has little deposit. Is it normal for companies to drag their feet/ act like this? Her solicitor (not dealing with this issue) has no advice, and it seems that they are not a problem for the ombudsman (sp?).

She has previously been very sensible with money, and this seems so unfair. Can anybody offer any advice?

Thanking in advance...

codetown

Sorry, I don't understand what you ask.
In general:

a) recovering money lent to someone without a precise agreement (and even with it) is difficult. There is a full forum dedicated to this on this site. Maybe you did post in the wrong section?

b) It is true that it might take some time to sell some funds, depending on the contract agreement this guy signed.

c) I am not sure why you mention a company. The ISAs are individual saving accounts, not for companies or business. So if he invested in an ISA it is under his name and his responsability.

d) The obudsman will only deal with complaints from a customer to a bank/financial institution. This is a personal matter between your mum and her frind. I see no other way to resolve it thatn clarify among the two. At worst she will have to go to court, provide evidence, get a favourable decision and then inforce it. It might well be a few years before seeing the money (if she will see them back!). So I would suggest to attempt some reconciliation rather than go this route.

jobbingmusician

I think I might understand - is the problem that your mum's friend/debtor is having problems retrieving his ISA money from L & G? in that case it DOES sound as if it might be a matter for the ombudsman. And when L & G finally pay up, with an extra payment for being so pathetic (assuming this IS actually what's going on) your mum should have the extra payment too, for her extra expense.

Is this the correct interpretation? Can your mum (maybe with your help) assess what she has lost due to L & G's failure to pay out since last September?

tanith

Usually patients that are having lengthy hospital treatments (especially if they are in receipt of benefits) can get their transport costs reimbursed.... 20k for hospital visits sounds an extraordinary amount of money..Don't meant to cast doubt on his story but is your Mum able to check any of this tale out?.............
He talks about his 'stress and hardship' but I am sure your Mum is equally under stress worrying about if she will get her money back..


Good Luck

EdInvestor

It sounds as though he might have an investment bond (perhaps a With profits bond?) with L&G.

Had he been able to draw an income from this bond before (maybe 5% a year)?

Is he perhaps waiting for an anniversary date for this bond (5th or 10th year perhaps) when he can get the money out without paying an exit penalty?

purplemoon

Yes, jobbingmusician, that is it. Unfortunately she is now loaning him more than what is there. Yes, she could try and work out what she has lost (although with house sales it would be a bit vague). She will also be trying to get her bank charges paid back by the bank. Interest will remain. Do you know how long going through the ombudsman would take? Apparently L&G only have to reply to a letter within 2 weeks.... The process sounds incredibly drawn out. Do you know of this kind of thing happening before? Does the company (I mean the financial institution) try to sell it on or something...? Are they oblidged to pay within a time limit? Can they pay extra for the expense that it has caused?!
tanith, he cannot eat and yet £100 taxi rides sure do add up! Plus B&Bs, peak time train rides, catfood, dvds, etc. I did mention that he has not been receiving benefits, whilst at some point they should be able to back pay him due to his chaoticness (sp?!) they will be unable pay transport costs in arrears.
EdInvestor, I don't think he has drawn money from it before. He had wanted to wait until August this year to receive a (5 year, I think) bonus, but was persuaded to get it out before. There have been numerous phone calls, and several letters to L&G. Could L&G be trying to hold unto it until a specific time?
Thanks for your replies

purplemoon

Apparently L&G had mislaid a document- now found, and will pay within 7 days. This information was found out when the the person whose money it is (before it passes to my mum) actually went to their office in Cardiff (he lives on the English south coast). We'll see.... Will keep you posted!

ReportInvestor

You what?

This sounds like a shaggy dog story to me.

And even if true more money poured unnecessarily down the drain by your mum's friend.

purplemoon

If you mean going to Cardiff.... His hospital is in Bristol and its not much further by train. My point isn't that he put himself out, but that they didn't even begin to communicate the problem/ sort it out until somebody was there in person.
Believe me, I know that it reads like wild deception- and I still don't think my mum will feel safe 'til its sorted, and she really does trust him.

tanith

Purplemoon I really wonder why if he is living on the South Coast is going to hospital at Bristol? I really am on your Mums side.....

purplemoon

He goes to Bristol, Chichester, and somewhere else. He is having some pretty complicated cancer treatment and they like to do it where the specialist/ regular consultant is. He's very few eyebrows now so if he's putting it on he's doing a blinding job! (No meaness to anyone meant).
To be completely honest this person has got himself into a crazy situation by lying about his identity to the hospital- he has a very complicated/ horrible past and there sound reasons for it- crazy nevertheless, but understandable (Amongst other reasons he was worried that due to mental health problems he would be forced to accept treatment). A year later he comes clean with his identity and brings in photographic proof as he understands my mum cannot afford his transport. Now the doc says he will pretend he never found out his true identity as he has comitted 'fraud' ('fraud' that did him out of money...). I think that sounds just as fraudulent, particularly as this is in his professional capacity.
Anyway, this has rather changed from a post asking about L&G/ bonds...!