Endowment Advice

ChrisKH

I took out an endowment investment many years ago to use to repay my mortgage, long before the whole controversy over endowments. For most years the insurance company gave me a red signal that my investment payout would be on the low side. It paid out a year ago and it was on the low side but better than I thought.

Today I received a letter from this well known insurance company, saying they made a mistake in the final bonus and asking for me to repay an amount approaching £1,700.00 within 14 days. At first I thought this was a scam but all the details on the letter are genuine. This is a well known insurance company we all use and I have other investments with them.

Where do I stand? I may need legal advice, but I am just flabbergasted that this is happening. I can't believe the audacity of a company asking me to rectify what is an internal control error on their part after a period of more than twelve months. Thoughts please, because I've never heard of this happening before.

Keep_pedalling

You would be asking them to rectify an error that left you with with less than you were entitled too. When was the payout made?

MWT

Presumably the payment you received matched the documentation they provided at the time?

Certainly one to get legal advice on, and do look for any terms or caveats regarding errors in the payment information you received at the time...

If you do not decide to follow a legal path given the cost vs the amount they are reclaiming, I'd certainly refer this to the Ombudsman if you have that option given how long ago it was taken out...   

ChrisKH

Paid out October 2023. trying to find the documentation.

silvercar

Even if an error occurred, there is no way you should be expected to find £1,700 within 14 days.

silvercar

Keep_pedalling said:

You would be asking them to rectify an error that left you with with less than you were entitled too. When was the payout made?

They are a business, OP is an individual, the onus is on them to get it right.

Given the amount is small to them but big to you, I’d be inclined to ignore it. At some point they could decide that chasing it costs them more than they would get back. 

ChrisKH

Taken legal advice, apparently they are perfectly within their rights (because of unjust enrichment) to pursue me for their mistake. They have six years to make a claim. As some have said, I could ignore them and they may decide not to pursue, but given that they are holding a large sum on my behalf (one of my pension pots) they know they are onto a winner (deep pocket theory).

Hoenir

ChrisKH said:

As some have said, I could ignore them and they may decide not to pursue,

Why wouldn't they pursue. Legally they have the law behind them. Will only incur you with additional costs. 

Propose a repayment plan at your convenience. 

penners324

Lodge a complaint with them, if this goes nowhere the lodge it with the FOS.

If that goes nowhere offer to repay it at £100 a month