Abbey Life / Phoenix Life - claiming money after 23 years

HurdyGurdy

I had a letter recently from Phoenix Life, saying they sent me a letter to the address they had on their system but it was returned undelivered, so they were trying to find out where I now live. 

I rang them and it turned out that they have taken over from Abbey Life. I had a policy with them which they said was ended (surrendered, maybe?) in 2001 and they have "found" money in their suspense account, some of which is mine.

I have to complete a form, and they will pay me the money - which takes about three months.

As they have had this money of mine for 23 years, should they be expected to pay interest on it, having deprived me of it for so long?

If so, how do I request this, and at what rate should it be? 

Brie

Did you ring a number on the letter or did you google one to ensure you weren't being scammed?  I've heard of more scams lately where bulk mailings are done and people are lured into signing up for something that may result in any tax refunds being received by the scammers.  Long shot of course and a lot of "a mate down the pub said" kind of thing but it's always best to be wary.   

Assuming it's legit I don't know if they are required to pay you interest or not.  I do believe, however, that with things like PPI (which I know this is not) there was a standard interest rate of 8% compounded.  

born_again

HurdyGurdy said:

I had a letter recently from Phoenix Life, saying they sent me a letter to the address they had on their system but it was returned undelivered, so they were trying to find out where I now live. 

I rang them and it turned out that they have taken over from Abbey Life. I had a policy with them which they said was ended (surrendered, maybe?) in 2001 and they have "found" money in their suspense account, some of which is mine.

I have to complete a form, and they will pay me the money - which takes about three months.

As they have had this money of mine for 23 years, should they be expected to pay interest on it, having deprived me of it for so long?

If so, how do I request this, and at what rate should it be? 

Did you ever update your address with them?

HurdyGurdy

I googled Pheonix Life (which is how I knew they were calling about an Abbey Life policy) and got the number from there, so I'm pretty sure it's a legit letter. 

I don't remember whether I updated the address or not. But I would assume that as they sent me the money when the policy was surrendered, they would have our current address. We've been here since 1993. 

dunstonh

I don't remember whether I updated the address or not. But I would assume that as they sent me the money when the policy was surrendered, they would have our current address. We've been here since 1993. 

If you did a partial surrender rather than a full surrender then a value would be left behind until maturity.

Assuming it's legit I don't know if they are required to pay you interest or not.  I do believe, however, that with things like PPI (which I know this is not) there was a standard interest rate of 8% compounded.  

The statutory rate applies to redress.  It would not apply in this scenario.    Chances are the policy has been invested until relatively recently, triggering the search.    Firms will not employ a tracing company mid policy term as the costs of using a tracing company are significant.   However, at maturity, they will do so.