Fair compensation?

PotentialEnergy

I have explained in previous thread about a Sec 32 buyout that I took out with Pearl which was taken over by Phoenix. It was important to clarify the value in terms of Lifetime Allowance which I sought do last April/May. The first response from Phoenix just gave the current value of the fund and its %ge of the LTA. I knew that was wrong!
So, I then wrote again emphasising what I wanted making a complaint that my question was not answered i.e. the letter hadn't been read properly.
The next answer came several weeks later offering a paltry £50 and giving a value of the original transfer sum(as done in 1988).
I kicked off another complaint and eventually got to deal with someone competent at their job! Then the truth came out. Phoenix had not actually got my policy papers. They'd been mislaid somewhere!. So, I then had to dig out mine and scan the key parts and send them to them.
I then at least got told the Guaranteed Sum Assured was the sum to take into account for the LTA. I raised the question with them about the Guaranteed Annuity Rate of 9.5% meaning that the Pension I'd get at 65*20 came to far more than the Guaranteed Sum Assured. I was told that wrt LTA, the GSA is the sum to use and that was corroborated in an earlier question I raised on this forum. By then, it had taken 9 months to get to the point that I knew the final answer.
Phoenix offered me £50 per complaint and £10 for having to provide them with policy papers. I.e £110. I told them no way and that I saw their level of service would be an order of £500-£1K if I took it to an ombudsman.
My case was referred to their Quality people and another 4+ weeks on I got a call out of the blue from someone accepting their service had been poor and asking what I sought. They couldn't authorise my demand. I said to them that I believe they pay a fee for each case that has to be assessed by the Ombudsman and they said £550 is the charge!
So, offering me a final sum of £360 i.e. another £250 above what had been offered seems mean given all the hassle, time, erroneous answers, loss of policy papers......
I pointed out that their duff advice could have meant I'd have had misinformation and ended up breaching the LTA(true as I'm in a DB Pension scheme and I've saved hard into AVCs/SIPPs) especially if it gets cut any further. They say that it didn't happen so nothing needs to be taken into account. But I feel that my general knowledge and common sense saved them a nasty sting in a few years.
What are the thoughts of people here? Should I just accept the £360 or is their service justifying a claim of nearer £1K but certainly over £500.

dunstonh

What are the thoughts of people here? Should I just accept the £360 or is their service justifying a claim of nearer £1K but certainly over £500.

You have done well so far. However, do remember that the offer can be withdrawn if you go to the FOS. Also, the FOS may choose not to charge the firm if it feels that this is just a disagreement on the amount of goodwill gesture and it doesnt need any further investigation. So, blackmailing them on the basis of the FOS fee can backfire if you push it too far.

Redress is about putting you in the position you would have been had the event in question not happened. You have not suffered the loss that you are saying could have happened. So, there is nothing to pay in that respect. So, you just have the goodwill for poor service.

Typical awards from the FOS are £100 to £250. I helped someone with a far more serious complaint than yours that Phoenix offered £100 for goodwill. It went to the FOS and they upped it to £400. In that case, it was noted that the policyholder had suffered stress and anxiety and died before the complaint was resolved. They had also lost money through the error but it was not an error that could result in redress. So, looking at your £360, I would think thats not a bad deal.

It is always difficult to know how far you can push a goodwill gesture to get it increased before the firm gets fed up with you and is prepared to let the FOS decide.

mgdavid

I'd gracefully take the amount offered, and get back on good terms with Phoenix. You don't really want to pee them off given that they still have your money!

saver861

I'd take the £360 and try to leave it all on good terms.

A goodwill gesture is just that .... a goodwill thing. They don't have to but they would be foolish not to offer something. On the other hand, they can't be seen to be a soft touch either - if they have not done anything that put you out of pocket.

I've had many 'goodwill' gestures from companies for various issues with the general range being from £50 to £200. It's almost a hobby of mine!

I've had £500 from Scottish Power last year for their poor service and I've had over £400 from O2 a few years ago for similar poor service.

They are willing to pay to shut you up and hopefully go away .... but all of them are only ever going to go to a certain level. However, I've only ever once gone to the Ombudsman. Usually best thing is to get as much as you can and keep it all friendly like .... and £360 would look like your best offer.

PotentialEnergy

Thanks to all those who responded and I've decided it is time to accept the offer.