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Phoenix endowment surrender farce

Hi guys - I'll try sum this up best I can. After posting on here and speaking with IFA I decided to surrender my (not well performing) Phoenix endowment policy. I requested surrender forms on 3.6.09 (surrender value on 3.6.09 £8,500). They were sent out to me on 9.6.09. I filled them in and sent them back and they received them on 17.6.09. On 24.6.09 they wrote telling me my signature didn't match the one when I originally took out the policy (:rolleyes:) and could they have some more identification? They confirm they received this on 7.7.09. The surrender payment was issued on 21.7.09 - value £7,200:eek: (received cheque 30.7.09)

I phoned them the next day 31.7.09 to say the value had dropped quite a lot since I spoke to them - could they offer any explanation? The guy I spoke to said it was best NOT to cash my cheque, as this mean't I was accepting the value. Anyway, I made the complaint and a very nice man from the complaints team investigated on my behalf, after he rung me to make sure he understood the nature of my complaint. I asked him at this time to check my signature as I know 100% that I have never changed my signature and can't believe it didn't match up etc etc.

I have received a letter from the complaints team (4.8.09) accepting my complaint. The value had significantly reduced because Phoenix held a scheduled review on 1.7.09 and as part of the review, they reduced the terminal bonus rate being applied to my policy - which caused the significant drop in the surrender value. However, he also checked my signatures and there is no difference - therefore, he feels I should not have been asked for further identification. In conclusion, my policy should have been surrended from 17 June 2009 (before the terminal bonus rates reduced) and they are, therefore, going to calculate the surrender value as of 17.6.09 (when they received my completed forms) and send me the difference plus the interest due within 10-15 days. They also sent me a cheque for £30 compensation.

I have not received another cheque so have phoned them today. They still have not got the information they require, ie, they have not got the value figure from 17.6.09. She said she was sorry, she didn't know what the delay was and why it hadn't still been sorted. I told the (lovely) young girl that it really wasn't good enough. I had two cheques which I had been advised not to cash because that means that I accepted their value. However, she told me today that I was given the wrong information initially and even if I had have cashed the cheque, it wouldn't have made any difference to my complaint. I'll try and put them in my bank later:mad:

Whilst I was initially quite satisfied with their response to my complaint - now I feel let down because 1) I still have the cheques for £7,200 & £30 sat on my worktop because I was told by the man at Phoenix not to cash them and, 2) if I had not complained in the first place and asked them to re-check my signatures (which I asked for proof as I knew my signature wouldn't have changed), Phoenix could have got away with reducing my surrender value by such a significant amount after their 'scheduled review date (1.7.09) - not my fault, as the signatures matched on 17.6.09!! and 3) I still have not received the 2nd cheque - she is going to push this through as quikly as possible but said it could be a futher 2 weeks today. Therefore, it will be approx 3 months since I initially started the ball rollling.

Does anyone have an opinion on this? Is £30 fair compensation, considering had I not made the complaint, it would've cost me £1300!!
Sorry for the long post - just wanting people's much valued input;)
Thank you very much

Comments

  • dunstonh
    dunstonh Posts: 118,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is £30 fair compensation, considering had I not made the complaint, it would've cost me £1300!!

    It is fair on the assumption that they should be paying you the maturity value as of the correct date plus interest for the delay. If you get interest then that should be fine.

    That said, I see no harm in going back to the complaints handler and telling him that you still havent received the money and you think the offer of £30 should be increased given the extended delay even after you put a formal complaint in.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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