Prudential Stole My Money!

princeofpounds

"I just wanted to inform you that by issuing the retirement instruction form, the funds, your funds, will be switched to the cash fund so that we can guarantee your funds for 30 days"

Yes unfortunately it seems you misunderstood.

"your funds will be switched to the cash fund so that we can guarantee your funds for 30 days"

is different to

"your funds will be switched to the cash fund for 30 days so that we can guarantee your funds"

I'm not going to be harsh on you, given it is in some ways an understandable mistake. We can forget about the pension statements in the interim. But you won't win in court.

geoffH

moneyfoolish wrote: »

I would suggest that the majority of the non-financial general public had been told that their fund was being switched into cash for 30 days then they would probably also assume that it would be switched back after 30 days. If not, the mention of 30 days is totally irrelevent as what it actually means is that it's being switched into cash forever or until further instructions are received.

Don't forget that most people on here think of finance in a totally different way to the general public. My wife, for example, who is very bright would not have a clue about anything financial other than how to spend money. She knows what a bank account, a debit card and a credit card are but that's about the end of her financial knowledge. She's just not interested as I've always looked after our finances.

However, I think most people would certainly have telephoned the Pru before the 30 days had expired to check exactly what was going to happen to the cash.

Moneyfoolish, thank you!

I (the OP, whatever that means?!) am discovering that most of the people on this forum are financial advisor types while I, like your wife, am just a consumer. This is important. I've got nothing to prove.

I'm not stupid but don't automatically assume that I know what a 'cash fund' is and that I know the processes and jargon of pension companies. I don't. Ask me how CGI works and I'll bore you to death! And don't respond with, 'you should have taken advice...'

I simply called the Pru to find out the process involved in cashing in my pension. They explained in a very jargonny way, disregarding my please for plain language, and I said I wanted to go ahead.

I'm not going to continue with this thread but will leave you with these...

1. If a time period is mentioned in any conversation about anything, it suggests when that time period is up, something happens. If it doesn't, there's no point in mentioning a time period.

2. Yes as someone said, this was SPOKEN not written, so in the 3 seconds I had to respond I had to decide what 30 days referred to.

3. There is no option to switch the money back out of the cash fund, ever. So even if I had gone back to them and said, ok I've changed my mind, can you re-invest it. they would have said no.

dunstonh

I (the OP, whatever that means?!) am discovering that most of the people on this forum are financial advisor types while I, like your wife, am just a consumer. This is important. I've got nothing to prove.

OP means original post or original poster. There are two financial advisers active in this section and a couple of occupational pension administrators. The rest of the people are non-industry and retail consumers.

You do have something to prove as you are making allegations and UK law places the burden of proof on you. The FOS is a little more friendlier than that as it moves some of the requirement to prove to the financial firm and also considers fairness and not just law. The courts do not.

I'm not stupid but don't automatically assume that I know what a 'cash fund' is and that I know the processes and jargon of pension companies. I don't. Ask me how CGI works and I'll bore you to death! And don't respond with, 'you should have taken advice...'

You should have taken advice. If you dont know what you are doing then why did you agree tell them to do it? yes, they may offer it to you but you could have said "what does that mean"

I simply called the Pru to find out the process involved in cashing in my pension. They explained in a very jargonny way, disregarding my please for plain language, and I said I wanted to go ahead.

Their literature is actually quite good an in plain English. However, it needs the person to read it. Just like their statements.

1. If a time period is mentioned in any conversation about anything, it suggests when that time period is up, something happens. If it doesn't, there's no point in mentioning a time period.

Painter and decorator turns up to paint your walls. Tells you that your grass is looking nice and green and you say the weather has been good. he then paints your walls green because you mentioned green in the conversation. Just because something is mentioned in a conversation does not mean that thing gets applied to everything.

The 30 days did not apply to the individual fund or fund switch. It applied to the guarantee period of the annuity quote and fund value used to provide that quote. Two separate things.

3. There is no option to switch the money back out of the cash fund, ever. So even if I had gone back to them and said, ok I've changed my mind, can you re-invest it. they would have said no.

So, you are arguing that they didnt do something they couldnt do within the product or within their regulatory permissions and that they did not provide you advice or discussion in a way that they are not authorised to do.

Ozzuk

All I can say is the majority of people seem to think you are wrong, but the only way you'll really find out is to proceed with court. For that, I wish you luck and I hope you post the outcome however it is.

I think they could have explained things better and I think you should have been more attentive, its your money after all. So mistakes on both sides maybe, but will that get you £30k. I doubt it.

PensionTech

3. There is no option to switch the money back out of the cash fund, ever.

Wait, wait, wait. What? Are you sure?

I'm going to reveal my ignorance here as investments really aren't my area, but surely that's not usual?

gadgetmind

Not being able to switch funds again sounds very odd. Why on earth would they do that?

Anyway, even if they did, surely you'd be able to just move the pension to another provider?

Triumph13

I'm wondering if he switched out early from an old with profits fund and actually what he couldn't do is go back into it.

I have a (very) small amount of sympathy for the OP's original misunderstanding, but none whatsoever for his failing to go back to them to discuss options when he changed his mind about cashing in or ignoring the next 8 years of statements.

geoffH

PensionTech wrote: »

Wait, wait, wait. What? Are you sure?

I'm going to reveal my ignorance here as investments really aren't my area, but surely that's not usual?

Yes indeed. When I first discovered this just over a year ago, naturally I said I wanted it switched back immediately and they told me once it's gone into the cash fund it can't go back to a pension fund. Also, during the dispute with the Pru, they sent me a copy of a letter, which they claimed they sent to me in 2008, though it was addressed to my IFA of the time, saying the same!

I have since, a couple of months ago, taken my entire pension to Scottish Widows.