Endowment Valuation issue

chipie

Hi,

I decided to cash in my mortgage repayment plan early with Halifax Financial Services. I called them first thing in the morning and was told if I went in to a branch of the Halifax they could certify my request and fax all the details over to them. Importantly, if this was done before midday the value would be guaranteed as that at close the previous day. I duly went to the branch, the assistant had to call them for the fax number, and it was again stated if they received the fax before midday the value would be that at close the previous day. All documents were certified and faxed at 10.00 a.m. and I have a copy of the confirmation.

Fast forward 2 weeks and after several chase up calls the sum was paid in to my account, but not at the agreed amount, but 440 pounds less being the value the following day (this was during the period of stock market volatility a couple of weeks ago). I have asked for the additional money and they are investigating. I can see this dragging on for some time.

Has anyone had a similar experience? Is there an Ombudsman for me to go to? Any help would be greatly appreciated.

dunstonh

Is there an Ombudsman for me to go to?

No. The ombudsman exists to handle complaints if you disagree with the complaint outcome. You cant go straight to ombudsman without complaining first.

I decided to cash in my mortgage repayment plan early with Halifax Financial Services. I called them first thing in the morning and was told if I went in to a branch of the Halifax they could certify my request and fax all the details over to them. Importantly, if this was done before midday the value would be guaranteed as that at close the previous day. I duly went to the branch, the assistant had to call them for the fax number, and it was again stated if they received the fax before midday the value would be that at close the previous day. All documents were certified and faxed at 10.00 a.m. and I have a copy of the confirmation.

Most life and pension funds are priced two days behind. Not one day. So, that may actually be the issue here. They are not like UT/OEICs which are yesterdays price (or opening price).

Also, most life and pension funds trade in the morning. You normally have to get the instructions in to the provider quite a bit before 10am. I havent looked up their dealing time but have you?

chipie

Thanks for your reply dunstonh.

I didn't look up the dealing time on the basis that I took what I was told (twice) at face value. This must be routine for them - I don't understand the confusion. You can either tell someone how much they will get by cashing in their plan or tell them the value they will receive is uncertain and depends on the value the following day, etc. Why would they not know this?

Also, the value 2 days behind was around 700 pounds higher - they appear to have used the following days value....