Axa Sun Life Bonus Cash Builder

teejdavies

My partner & I started a little savings fund a few years ago with Axa SL. With the advent to 2 children and the prospect of buying a new house we have investigated the possibility of cashing in the scheme, however we have been advised by Axa that we will only receive £8.8k, as we are cashing in early. We have paid in around £12.5k and have been advised by a friend that we can put together a case to recieve the full paid in amount (less the life assurance) despite us cashing in the scheme approx 7 years early.

We have read the policy think we are well past the "early years" surrounder examples

Can anyone help?

Teej and family

dunstonh

These types of plans were known as savings endowments. They were mostly obsolete by between 1990-1995. The direct sales forces held on to around 1998 but after that it was really impossible for an adviser to recommend them. So, AXA and a few others turned to retailing them direct to public. Known as "direct offer".

If you buy using a direct offer then you get less consumer protection. You are basically choosing to buy without advice so you cant complain later that you didnt know what you were buying.

So, under normal circumstances and putting it bluntly, its your own fault for not using and adviser and buying an obsolete and expensive product that you didnt understand.

However, there is a get out of jail free card which may or may not apply to you. AXA got some of the small print wrong for a short period of time and anyone that bought during that period can ask AXA to refund the premiums plus interest. If you didnt buy during that window then you have nothing to complain about. So, when did you buy yours?

have been advised by a friend that we can put together a case to recieve the full paid in amount (less the life assurance) despite us cashing in the scheme approx 7 years early.

Your friend is wrong.

teejdavies

Many thanks for your advice and help. We have not yet decided to surrender the early. We started this as a side policy which would be a "nice little earner" when the kids were somewhere getting close to university age. It certaily was not sold to us as an endowment policy.

It would certainy help right now with the costs of moving house (since starting the policy I have been made redundent and have settled into raising children - basically we are a one job family now).

We started it in Dec 2002.

Cheers again for your help - its much appreciated

dunstonh

It certaily was not sold to us as an endowment policy.

Was it sold to you or did you buy it?

If an adviser sold it in 2002 then you may have grounds for complaint there as the justification for doing it is almost non existent compared to an S&S ISA. Although I dont think AXA even made it available to advisers then.

You may get lucky here though. You fall into the period covered by the advertising mistake. In reality, the mistake wasnt noticed by anyone and it wouldnt have made any difference but it does give you the get out of jail card you need. You can quote the FSA ruling and ask for your money back.

AXA Sun Life's advertisements for the Bonus Cash Builder Plus Plan (BCP) and the Guaranteed Over 50 Plan (GO50) did not provide customers with sufficient information about how the product worked or the risks involved. The design, content and format of the promotions focused attention on the benefits of the products including the offer of free promotional gifts, but gave less prominence to key information about the risks.
Furthermore, advertisements for the BCP between January 2002 and April 2003 included comparative data that was itself inaccurate. The serious nature of AXA Sun Lifes breaches was compounded by the firm's failure to promptly inform the FSA of the data error. The firm discovered the error in April 2003. Although the error was remedied immediately, the FSA was not informed of the error until the firm wrote to the FSA on 19 November 2003.

teejdavies

Once again you have been very helpful, thanks.
The offer was sent to us from AXA in the post, adressed to my partner. We do not have this original mail but we have the all the subsequent paperwork which clearly states the scheme is a "savings" account in the form of a "bonus cash builder plan"; termed as a "simple way to save" with a "guararteed return on our savings etc...etc...".

I take it we can quote the wording you quoted? We have written to them yesterday explaining that we are not happy with the valuation they have quoted and have are looking into advice & next steps.

helenjarvis

I also have two small AXA saving plans take out in 1989 and 1990. Does the question of 'not enough info on risks' refer to this period also?

dunstonh

helenjarvis wrote: »

I also have two small AXA saving plans take out in 1989 and 1990. Does the question of 'not enough info on risks' refer to this period also?

No. You are about 13 years too early.

Ahood99

What about me, I also saw it through an advert with one year's premium paid back to me as an incentive to buy. I remembered been shocked at the return, I paid in £600 at £50 per month and got back, I think £300. The rest I presumed went on management fees. They don't send yearly statements. My policy now matures on 06.11.2016. In the advert I was estimated to collect £32,000+ but this recent bonus review states £21000+. Is it worth continuing for a possible £5000 profit not guaranteed?

scottiwilb

Does anyone have a template letter they are willing to share as I would like to cash in my Bonus Cashbuilder Plan with AXA?? Appreciate your help

dunstonh

scottiwilb wrote: »

Does anyone have a template letter they are willing to share as I would like to cash in my Bonus Cashbuilder Plan with AXA?? Appreciate your help

dear sir,

axa cashbuillder plan number

I wish to fully surrender the above plan. Please send me the proceeds by cheque at the earliest opportunity.

Yours sincerely.....

MISHEL02

is there a template letter for reclaim during the misold periods