Strange error & now my mum owes thousands- help!

user1977

Manxman_in_exile said:

eddddy said:

I guess that the company will be regulated by the Financial Conduct Authority - so you can probably make a complaint to the Financial Ombudsman Service (FOS), and they would investigate and make a decision for free.

You (or your Mother) have to go through the process of making a complaint to the company first. But it might be worth phoning the FOS helpline first, to see what they say.

Go here and scroll down, to find their helpline number: https://www.financial-ombudsman.org.uk/consumers/how-to-complain

*It's worth finding out.  If the company in question didn't realise they'd been overpaying for 20 years, it's at least arguable to ask why should your mother have known she was being overpaid?

I think it's more likely they've been paying the wrong party than they've been overpaying.

Manxman_in_exile

When did your mother employ a financial advisor - before or after this error?  

If it was after, should they have realised something was wrong?  Did they make a mistake not spotting it?  If they, as professional financial advisors, didn't spot it, how could your mother be expected to?  If it was before, did they advise your mother to take out this bond and should they have checked it was properly processed?

Answers to all these question rely on the facts, and your mum is probably the only person in a position to say what the facts were at the time and in the intervening 20 years.  Lots of people here may argue that your mum "ought to have known" etc but they don't know that she ought to have known because they don't know all the circumstances - only your mum does.  I don't see how you can resolve this without telling her it hasn't been sorted yet.

She needs to marshall all the facts and ask a solicitor if she has a defence to any possible claim.

Manxman_in_exile

user1977 said:

Manxman_in_exile said:

eddddy said:

I guess that the company will be regulated by the Financial Conduct Authority - so you can probably make a complaint to the Financial Ombudsman Service (FOS), and they would investigate and make a decision for free.

You (or your Mother) have to go through the process of making a complaint to the company first. But it might be worth phoning the FOS helpline first, to see what they say.

Go here and scroll down, to find their helpline number: https://www.financial-ombudsman.org.uk/consumers/how-to-complain

*It's worth finding out.  If the company in question didn't realise they'd been overpaying for 20 years, it's at least arguable to ask why should your mother have known she was being overpaid?

I think it's more likely they've been paying the wrong party than they've been overpaying.

True.               

thegreenone

I know very little about bonds but perhaps the owners are newly retired and have only just needed the money to supplement pensions.
My late Mum was very good with money but even she needed help with some forms and found AgeUK were excellent.  I know things are different at the moment but contact them and see if they can help with Pension Credit and Attendance Allowance forms.  I definitely agree with getting POA in place.  We had it in place just three weeks before the fall, and subsequent ill-health, that eventually took Mum six months later.  My husband and his sister did it themselves for their parents.
I wish you all the best.

Ditzy_Mitzy

user1977 said:

Baskethandle said:

gettingtheresometime said:

I can't advise on the repayment situation but I'll just add this thought - if you were the person who owned the other bond, wouldn't you have queried as to why you hadn't received any income?

Yes I wondered this too, apparently they only quired it 20 years later 🤷‍♀️

Not realising that they're £60k short isn't really any stranger than your mum not realising that she's had £60k too much.

I'd suggest it's perfectly possible.  £60,000 over 20 years is only £3,000 p.a. or £57.69 a week.  It's not exactly the sort of figure likely to cause one to smell a rat.  

Keep_pedalling

Does your mother own her own house? If so it may come down to them having to put a charge on the property.

I think it is worth reposting this on the pensions or savings board, there is a lot more expertise on this sort of thing.

pbartlett

Your mother owes the money and will most likely have to.pay it back. That is the starting point.

However, it is equally likely she can pay it back monthly at a sum she can afford.

Do an income / expenditure plan, see what it left over - that is the absolute maximum you should offer. 

You will need to show bank  statements to back.up your calculations. The repayment rate will be a matter of tough negotiation on both sides

sheramber

Could Stepchange help?
https://www.stepchange.org/