Help! - Policy valuation disappears in puff of smoke as a backdated lapsed policy

dunstonh

The annoying thing is the contempt they appear to have for not 'really'acknowledging, or apologising for issuing the 2001 letter. My Dad really wasled to believe that the £464 actually existed. The letter states:

"I can assure you that your details are correct on our system and bonuscertificates will be issued to you each year"………………”I can however confirmthe current status of the above plan. The current value is £464.68”

Now they tell him that details were never correct on the system, and likeHolly appears to allude to, they don't really believe such a letter mayactually exist.

As I said, all very similar. My client had multiple letters showing the valuation. I had even phoned up and checked it myself. Each time the wrong information was repeated. All because someone didnt press a button that they should have. Very inconvenient but at no point did the person have any right to that money as they had not paid the premiums.

The insurer in our case didnt offer an inconvenience payment. The FOS told them to. That is the best you can hope for here.

RoughRook

Thanks Dunstonh, i believe recognition of inconvenience is also appropriate in this case.

holly_hobby

Hi Rook,

What are you hoping FOS to direct ?

1. A simple letter of acknowledgement and apology, that the info given in 2001, was in error. Would this be sufficient for you to put this to bed ?

2. For RL to pay a SV on a policy that is already determined as being :-
- live (prem payable) for only 6 mths (as Dad has always been aware of as he ceased the prems)
- lapsing in 1987 without ever having a value then, 2001 or now
- supported by the fact that the firm have advised that any letter that may have been issued in 2001 (with notice of an apparent SV), of which they have no record, would of been and was inaccurate - as the policy hadn't been acitve long enough (at only 6 mths) to generate any SV.

3. Or are you looking for some other kind of payment ?

As I stated many times, and from the beginning, D&I would only ever be the best you could hope for - Dad was never entitled to the £464 as the policy never had this value, so he can not be compensated for loss of something he never held.

An award of D&I, would be dependant upon the details of the case, and the actual distress and (financial) inconvenience that has actually been directly caused by their error.

Duns. tale is a howler of mistake, after mistake, after mistake - not just one letter, but several, including a discussion with the IFA - whom was also given the dufo info, thereby comprimising any financial advice and recommendation he gave off the back of the figs quoted - quite horrendous and quite rightly a D&I payment was made.

In this case, I'm not so sure ... I did expect RL to offer you £50 D&I without admission of liability or prejudice just to top and tail it - but they didn't do this, which I suspect means that they don't believe FOS will give anything either.

But its up to you, price of another stamp and your time I guess.

Here is a link to FOS website for you to take this to them if you wish http://www.financial-ombudsman.org.uk/ - NB - DAD is the complainant here and will need to complete the forms and be questioned by FOS accordingly (unless he authorises you to represent him).

FOS's decision (Ombudsman level) is final - if they found Dads complaint unjusitfied - the only other avenue would be the courts, and I'm sure that you wouldn't take this there, given whats already been discussed throughout the thread

Hope this helps .... let us know the outcome if you do refer to FOS ..

Wish you well

Holly

RoughRook

Going the route of a price of a stamp, and see where it may lead.

In Duns case it appears that the valuation was far greater than the actual premiums paid because unpaid premiums continued to be added? But in this case the valuation statement is similar to the premiums paid, so Dad was misled to believe that their statement was correct and not a blatant error. He couldn't remember if he had stopped payments after 6, 13, or 18 months, so was genuinely misled in 2001 that his policy was valid and had value.

Anyway, will let you know what happens. Thanks for the help.

holly_hobby

Out of interest, what was the monthly premium ?

RoughRook

I don't know Holly, and after 25 years my Dad can't remember exactly, but (premiums x months) - charges comes to approximately the amount quoted in their infamous letter of statement. Maybe they don't know either! :-) They didn't mention it.

RoughRook

Conclusion.......after a complaint to the Ombudsman, Royal London offered £200 as final settlement......accepted......case closed!!

dunstonh

D&I payment was the outcome we thought was most likely here and £200 is in the right sort of range. So, fair result in the end.