AVIVA - Endowment Mis-selling Offer

cpp02ib

Hello all.

I've had a policy with AVIVA (formerly CGLA) since 1993 - paying just under £54 per month. To date i've made just over £10,300 worth of contributions! The policy matures in 2018.

I got an offer of £8600 to close the complaint and close the policy. However, to surrender the policy now, I would get around £6300.

Should I accept the offer or take it further to the FSA with the aim of getting a minimum of £10,300 back?

dunstonh

Should I accept the offer or take it further to the FSA with the aim of getting a minimum of £10,300 back?

The FSA dont handle consumer complaints and wont get involved.

Aviva use the correct mortgage redress calculation method so there is no reason to think you would get any more. Indeed, the way the markets have started to recover, there is the possiblility that any attempt to get a recalculation done could reduce your redress payment as MVRs are starting to reduce and final bonsues going back on or unit linked prices rising.

cpp02ib

Thanks for the reply.

I am awaiting information from AVIVA to confirm the "projected value" upon maturity.

Do you think I should accept the offer or continue payments until maturity (2018)?

dunstonh

We would need more info on your plan.

its current postion, surrender value, how much you are paying, projection figures, what funds you are invested in and how much your mortgage promise value is (the latter is key to deciding if you should keep or not).

cpp02ib

Thanks again.

The monthly payment is £53.80 per month (started Oct 1993); current surrender value is £6,800; projected value is £13,300 in 2018; basic sum assured = £7,175 with participation in profits; mortgage sum assured £25,390. Original company was Commercial Union Life Assurance.

I look forward to your response.

cpp02ib

I've decided to accept the offer for ~£8,300 from AVIVA - who after conducting an internal investigation established that I was "mis-sold" the policy. Even if I accept this offer I can surrender my policy for ~£6,800.

Since i've paid ~£10,300 worth of premiums to date, I would very much like to accept the offer and surrender the policy to receive around ~£15,100 - which is an additional ~£5,000.

dunstonh

Before you surrender, just check what the mortgage promise value is. With Aviva plans, if you have a good promise value then they can be worth keeping.

cpp02ib

Thanks - the promise was around £2,200 and could have been worthwhile actually. I've had a good think on it and decided to close the policy as I could do with the cash in the short-term.

Thanks for your support and help!