Nu mvr penalties retrospectively applied

RobbedRobbins

Has anyone had any success in getting MVR penalty charges waived on policies where they were never stated in the intial policy terms but have sine been applied retrospectively? I cannot bvelieve this practice is legal!

Also has anyone investigated the possible misrepresenation by NU to policy holders like us who were advised not to cash in their endowment policy because they were going to receive £1000 from the inherited estate
only to find out that by the time NU announced they were renaging on this deal and we weren't getting any bonus, they had imposed MVRs? This has equated to a loss to us of over £2500- that being what the policy is worth now to what it would have been had we cashed it in 2008 and the additional cost of 15 months £100 monthly premiums! Surely NU must have a case to answer? In any other business this would be considered serious malpractice.

dunstonh

Has anyone had any success in getting MVR penalty charges waived on policies where they were never stated in the intial policy terms but have sine been applied retrospectively? I cannot bvelieve this practice is legal!

Have you any evidence that its retrospective? MVRs have been possible on with profits funds for decades. Far longer than most endowments investing in with profits funds have been running.

Also has anyone investigated the possible misrepresenation by NU to policy holders like us who were advised not to cash in their endowment policy because they were going to receive £1000 from the inherited estate
only to find out that by the time NU announced they were renaging on this deal and we weren't getting any bonus, they had imposed MVRs?

1 - Aviva dont advise you. They issue information only. If you act on it, then its your choice.
2 - If you wanted advice you should have used an adviser. Advisers carry the liability.
3 - At no point did Aviva tell anyone they would get £1000. The average payout was anticipated to be £1000. Average means some get more, some get less.
4 - Representatives of insurers are not allowed to recommend cancellation of existing plans.

Aviva have not renaged on anything. You have made assumptions and choices that didnt work out but you are responsible for those. The FSA dont allow complaints on invesmtent returns either as they are always unknown. So, thats a no go option as well.

Surely NU must have a case to answer?

Nope.

In any other business this would be considered serious malpractice.

In any other business it would be caveat emptor. You made decisions without seeking advice. You are liable for those decisions. No-one else. If you had seen an adviser and got your recommendation report then there would be potential for complaint then. However, that report would also have come with the risk warnings protecting the adviser. If you have a recommendation report and it doesnt carry the risk warnings that the value could go down then you may have some grounds. I suspect you have no report though as you never sought advice.

EdInvestor

RobbedRobbins wrote: »

Has anyone had any success in getting MVR penalty charges waived on policies where they were never stated in the intial policy terms but have sine been applied retrospectively? I cannot bvelieve this practice is legal!

To obtain redress for this you would need to make a successful misselling complaint against whoever sold you the original policy based on the fact that non disclosure of MVRs meant that the policy was unsuitable as it did not match your attitude to risk.

Have you made a loss on the policy do you think?Is there a mortgage shortfall?