Is this a scam?

SkittlesnBandaid

Hello. I’m a newb just looking into the forum after hearing/reading lots of positive feedback and needing some guidance on behalf my geriatric parents. Who many years ago did an equity release. All good and done and dusted with the loan paid back after a downsize (again years ago). Fast forward to yesterday when my poor old mum gets a letter out of the blue from a company who took over the company with/from whom they (my family) released their equity. This company is saying my folks were overpaid out of some sort of investment product that was taken out during the release application and paid for with some of their equity. The letter is giving my penniless aged parents 14 days to come up with over £40k and give it to the company who have written to them! Surely it’s a scam?

[Deleted User]

It's highly unlikely to be a scam. 

Contact them to ask for evidence of the debt.

[Deleted User]

Need to also confirm the dates, if it was paid off more than 6 years ago, it could well be statute barred

Brie

I'd suggest they request a SAR (subject access request) which they need to provide free of charge within a set time period and should include every single document or file that has their names on it. 

My guess is that at best this is just a scam or near scam fishing expedition and they'll never hear back at all.  Or at worst they might get a redacted list showing your parent's names against an amount but no further evidence.  And that won't prove they owe anything.  

SkittlesnBandaid

Hello zx81, Farfetch and Brie. Thanks for your thoughts. I’ll try and get back to you with a clearer picture on the dates which seems to be a good starting point for putting this into a tailspin. If they made a mistake before then who’s to say this most recent correspondence isn’t also another mistake on their part? Once I have a copy of the letter I’ll know more. 

The SAR angle is interesting to me as my first thought was would there have been a clause in the original contract where my folks agreed to take responsibility for the lending party’s slip-shod accounting? 

I have a SAR template around so will prepare for that once I have some more ‘meat’ to present here. 

I aim to be back over the bh weekend. Best wishes to you all. Hope you’re all well and keeping safe. Thanks again 

S+B

[Deleted User]

SkittlesnBandaid said:

The SAR angle is interesting to me as my first thought was would there have been a clause in the original contract where my folks agreed to take responsibility for the lending party’s slip-shod accounting? 

There's no need for such a clause. The original contractual conditions would still apply.

SkittlesnBandaid

Hi zx81. Let me try and find a copy. Will be back with an update asap. Have a great weekend. Thanks 

SkittlesnBandaid

Hope everyone has been able to enjoy the weather. Here's a copy of the correspondence.
Redacted of course:





 
My folks have virtually no records of any of this (or anything else that far back!). Its been pointed out the bank details are different for the two payments. And apparently the equity release was with a different company (as mentioned). I think its a bit unrealistic to ask anyone to pay back the best part of £60K on presentation of a letter as poorly evidenced as this is.

Neither can I understand why anyone would have surrendered such a product for what amounts to an insignificant return (of what is approximately £700 PA in interest) on a £30K investment over 5 years.

Any advice or insight appreciated
Many thanks!

S+B

SkittlesnBandaid

Hi Farfetch, Brie & zx81. I’ve had a look at a page on the National Debt Advice website and identified the following template letter regards statute barred debt. Is it a pertinent initial response to the situation my folks have been landed with please?

Dear Sir/Madam,

Account number/Reference number

I write to you regarding a letter concerning the above account that you sent me dated (dd/mm/yy). I enclose a copy of said letter for your convenience.

I must inform you that I do not acknowledge the debt. If you believe that a valid debt exists and that the Debtor resides at this address, please provide proof of your claims in writing.

The Financial Conduct Authority rules clearly state that until such time that you are able to provide this evidence you are barred from using any further collection methods.

Yours faithfully,

(your name)

Keep_pedalling

An incorrect payment from Dec 18 will not be statute barred.  

Do you have power of attorney for your mother? If not I would recommend she sets up a general power of attorney to let you deal with this, and for the longer term put lasting powers of attorney in place. 

SkittlesnBandaid

Hi Keep_pedalling

Thanks for looking in. My brother has the LPA and we get along fine. He’s just got a bit on at the moment as dad is displaying some problematic behaviour unfortunately. I’m providing back up and hoping we can get a handle on things. What planet does this company exist on thinking they are going to resolve their issue in 14 days. Surely if the account was surrendered as they say then any contractual obligations (for both parties) would likewise have been surrendered and therefore this company’s claim has little or no teeth. My brother and I thought there was a 10 day threshold covering mistaken bank payments. That would make the 4 years since 2018 out of the question. Would it not?