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Discontinuance Fees

Hi, Just been advised by my Retirement Plan provider that my policy was put on holiday break for 3 years at the end of 1995 and after this period the company wrote to inform me of a discontinuance charge. The total monies paid in were £6500 starting from 28.03.1994 and after 18 years now has a value of £220. When I questioned this I was told that there was a discontinuance charge of £8500 in 1999 at the end of the 3 year holiday.

Is the amount of penalty charge accurate or am I right in thinking I've been robbed? How can the penalty sum exceed the value of the plan?

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