Don't Know what to do with L&G

Geesterbug

I’ve got a bit of a situation with Legal & General with regards to some critical illness cover, and I’m not sure what my next step should be.
Back in 2006, my IFA recommended some Critical Illness Cover with L&G which I took out.

In May of 2010, my IFA recommended a different policy offering better cover, also with L&G. This was duly set up and I was instructed to cancel the original 2006 policy.

Jump forward to March 2013 and I discover that the premiums for the 2006 policy have still been getting collected at a rate of £40.95 per month. I am first to accept that this was my error, as it was my own responsibility to cancel the policy as advised by my IFA (who also happens to be a family friend).

I immediately contacted L&G to advise them (having cancelled by direct debit at the same time). Although I did not log it as a complaint with L&G, they decided to pass it to their complaints department, although I went to great pains to confirm that I didn’t make a complaint, as the fault lay with me and not L&G or my IFA.

I had respectively requested a refund on the overpaid premiums in the hope of perhaps receiving some of the £1500 or so what was paid out. Baring in mind the replacement policy was also with L&G.

However, they have said no. As I had quite openly and honestly admitted to not cancelling the policy back in 2010,they pointed out it was in effect my own fault.

They have since contacted my IFA and advised him that if I try to take it further to obtain a refund, a complaint would be raised against my IFA and the company he worked for at the time, both of which have zero complaints.

I guess I had expected L&G to be a little bit more understanding and flexible. I could point out their lack of internal systems failing to highlight a customer paying two separate sets of critical illness cover.

Anyway, I wondered what my options were without getting my IFA into bother, as he has does nothing wrong.

Any advice greatly received.

opinions4u

I could point out their lack of internal systems failing to highlight a customer paying two separate sets of critical illness cover.

I have two life assurance policies with the same company.

I would be mighty annoyed if they took it upon themselves to stop collecting the premium on one of them.

A question for the IFAs: wouldn't you collect an instruction to cancel a policy and forward it on to the life company for this, or would it be normal to ask the client to do it?

ACG

Im not sure how they could raise a complaint about the advisor... i have never come across this.

They are extremely unlikely to refund any of the premiums, the reason being is that they would have paid out on both policies. Unlike house insurance or car insurance you can have as many policies as you like

Thrugelmir

Geesterbug wrote: »

I guess I had expected L&G to be a little bit more understanding and flexible. I could point out their lack of internal systems failing to highlight a customer paying two separate sets of critical illness cover.

You've had the benefit off all the cover afforded under the plan. If you had made a claim then would have received the benefits. So no grounds for retrospective cancellation.

Thrugelmir

Geesterbug wrote: »

Anyway, I wondered what my options were without getting my IFA into bother, as he has does nothing wrong.

Maybe there are issues, unrelated to yourself, regarding the IFA's conduct as an agent of L&G.

dunstonh

A question for the IFAs: wouldn't you collect an instruction to cancel a policy and forward it on to the life company for this, or would it be normal to ask the client to do it?

I have done it both ways in the past. a) i have pre-prepared the letter and held it until we know the new policy is on risk as accepted and b) written to a client to say they should now cancel the direct debit to the old one and cancel it with the insurer.

The direct debit cancellation can only be done by the individual.

I guess I had expected L&G to be a little bit more understanding and flexible.

I don't have a good opinion of L&G which goes back many years. Presumptuous and arrogant. However, that purely comes from a couple of their staff members. It may not be a fair representation of the company but it did stain my views.

I could point out their lack of internal systems failing to highlight a customer paying two separate sets of critical illness cover.

You can have as many as you like and many people have multiple plans. Nothing wrong there.

Anyway, I wondered what my options were without getting my IFA into bother, as he has does nothing wrong.

Withdraw the complaint as there is little to complain about anyway as you acknowledge.

Maybe there are issues, unrelated to yourself, regarding the IFA's conduct as an agent of L&G.

IFAs are not agents of the insurer. They are agents of the client. The IFA could not cancel the policy or direct debit. It would require an instruction from the policyholder. The IFA needs to instruct the policyholder what to do and that has taken place.

Geesterbug

Thanks for all the responses.

I guess I'll just have to live with it.

To rub salt in the wound, L&G have sent me two letters telling me they'll have to cancel the policy because I've stopped the DD.

ACG

How does that add salt to the wounds? You cancelled the dd therefore no payment for the policy - how would you expect it to remain in force?