Proving a letter was sent

DavePrin

My parents-in-law have lost a significant sum of money because they didn't receive a letter about the consequences of stopping a direct debit into a life insurance policy, while they were going through the process of terminating the policy. When they received the final payout a few months after the letter was supposedly sent, the sum was much, much lower than they had been expecting. The life insurance provider maintains the letter was sent, but it hasn't produced any evidence of that: the letter wasn't sent recorded delivery. The matter went to the financial ombudsmen who has said that she is satisfied the letter was sent. But the ombudsmen hasn't produced any proof of this.

Unless an important letter is sent recorded delivery, how do we know that it was actually sent? Even if there is a copy on file on a computer, doesn't the life insurance provider need to prove that it was actually printed off and sent? Does anyone have any experience or knowledge of this kind of dispute?

Joe_Bloggs

In an ideal world, important letters should be registered upon acceptance by the conveying party and confirmation of receiving the letter should be taken by the conveying party.



There may also be terms and conditions buried within copious pages of terms and conditions that permit many things to which the consumer signs up for in a state of mental exhaustion, whilst trying to understand the endless 'legalese' .

The cost of stopping the direct debit to the provider is probably negligible . They pounce on this error to extract money. This is the nature of the business.

J_B.

bigadaj

Legally letters are deemed served a couple of days after being sent, it would, be normal to provide proof of postage but not receipt.

It would, be useful to know the context of this, where the parents acting on a telephone conversation for example, as sourcing a recording or complaining about that may well be more fruitful.

One lesson is obviously not to cancel direct debits early, even if they overpaid then they can be reimbursed later.

TrustyOven

DavePrin wrote: »

My parents-in-law have lost a significant sum of money because they didn't receive a letter about the consequences of stopping a direct debit into a life insurance policy, while they were going through the process of terminating the policy.

How can not receiving a letter mean that they lose a significant sum of money if they are terminating the policy?

Are you saying that they stopped the DD and they somehow lost out the oppurtunity to gain more money than they had hoped?

Or are you saying that they didnt stop the DD so they continued to pay after the policy was closed off so the money after the cut off point was lost?

DavePrin wrote: »

When they received the final payout a few months after the letter was supposedly sent, the sum was much, much lower than they had been expecting.

Why were they expecting that amount?
What assumptions did they make about the amount they would get?

PixelPound

DavePrin wrote: »

The life insurance provider maintains the letter was sent, but it hasn't produced any evidence of that: the letter wasn't sent recorded delivery. The matter went to the financial ombudsmen who has said that she is satisfied the letter was sent. But the ombudsmen hasn't produced any proof of this.

Unless an important letter is sent recorded delivery, how do we know that it was actually sent? Even if there is a copy on file on a computer, doesn't the life insurance provider need to prove that it was actually printed off and sent? Does anyone have any experience or knowledge of this kind of dispute?

They won't send it recorded, just normal business post. It will show as printed and sent on their systems and the FO has checked to their satisfaction. No need to prove it to you or your parents. Did they inform the insurance co they were sopping the DD or simply assume if they stopped they would get the full value of the plan? Many plans have a bonus part that isnt paid out if terminated early.

Gadfium

TrustyOven wrote: »

How can not receiving a letter mean that they lose a significant sum of money if they are terminating the policy?

Are you saying that they stopped the DD and they somehow lost out the oppurtunity to gain more money than they had hoped?

It sounds like they were terminating the policy (or it was approaching a paid-up date). They then issued instructions to cancel their DD, presumably before the policy finished. The life insurance provider wrote to them telling them of the impact of not paying the last amounts once they were notified that the DD had been cancelled. This advice was ignored or not received. The final pay-out was less than planned as the final payments weren't made.

It sounds like the parents-in-law made an assumption. This assumption proved to be incorrect and they are now out-of-pocket due to that assumption. They are now looking for any reason to shift the blame onto someone else rather than accepting that they cocked-up.

If that is the case then how can there be any blame on anyone other than the parents-in-law? They would have had the Terms of the policy and the life insurance company made an effort to advise them of the error of their ways.

teddysmum

If the terms and conditions state a penalty for cancelling a direct debit,I doubt that the company would be obliged to send a letter confirming this. (Rather like Sky not being obliged to write to you to confirm that a special discount is about to end, so full price will be charged.)

Freecall

As bigadaj says, from a legal perspective sending something via Royal Mail constitutes good service. There is both substantial case law to support this as well as the simple fact that every day the UK courts serve documents on plaintiffs and defendants using nothing more sophisticated than the postal service.

Thrugelmir

DavePrin wrote: »

The matter went to the financial ombudsmen who has said that she is satisfied the letter was sent. But the ombudsmen hasn't produced any proof of this.

The Company concerned will have internal procedures in place for such eventualities. They'll be a log to substantiate the activity.