Urgent advice please

Pobby

Last year,on the advice of people here and others I surrendered my Scottish Life with profits endowment plan.It was doing very badly and although I havn`t claimed,it would appear to have been mis sold.
I received a cheque for £28,883.58.
Today I have received a letter from them saying that i have been over paid.and that the MVA was miscalculated and I need to pay back £2,126.06!!!!!!!!!!!
Theres a bit of a guilt trip about about how it may affect other policy holders in the fund
So what to do.can they force me to pay this back.Their mistake.Frankly I am sick and tired of the whole endowment business and I really don`t feel inclined to rush to get my check book out.
What to do?

Steve_xx

This might help you todecide:

http://www.thisismoney.co.uk/ask-an-expert/savings/article.html?in_article_id=429872&in_page_id=111

martinman3

You are right not to rush for your cheque book. Surely you had some sort of letter confirming the surrender value before you signed a form to surrender it.
If the value quoted is what they paid you I don't think that they have a leg to stand on. However, if you were quoted one figure and the cheque was for £2126.06 more than that then the extra money should be paid back.

Pobby

Yes I had a letter and telephone conversation that quoted the amount that they would pay me.I have spoken to the FOS today and they are going to put in a letter of complaint.

In fact,the demand they have sent me says``we have paid you £28,883.58. in full and final settlement`` which,is far as I am concerned,the end of it.Not my fault they got it wrong.

TRUSt_NO_1_2

ha ha.
They've cocked up !
The phrase Kiss my *** comes to mind

TRUSt_NO_1_2

Steve-xx "
This might help you todecide:

http://www.thisismoney.co.uk/ask-an-...in_page_id=111"
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The above will not help you decide.It is not a good analogy.The above was an undocumened mistake i.e no prior agreement in writing.
Whilst I am not an IFA,just Joe Public,if they have, in writing, offfered and taken your acceptance of that offer, a full and FINAL (stress the word FINAL) settlement,it is as such is a legally binding transaction.
So as I said in the previous post...
they have cocked up,but tough ON THEM !
Let them take you to court and pile up your expenses !

dunstonh

Whilst I am not an IFA,just Joe Public,if they have, in writing, offfered and taken your acceptance of that offer, a full and FINAL (stress the word FINAL) settlement,it is as such is a legally binding transaction.

No its not.

Its a tough one to call but I had a case about 10 years ago where someone was incorrectly told a number of times, both on paper and by the agent what their values were on their pension. The person retired based on that information and moved out of London to Norfolk. The error with the pension value was finally spotted by the insurer and it was 1/10th of the amount that they had said. Complaints were made, it went to the FOS who basically said, yes it was a mistake but they were never entitled to that money and shouldnt profit from a clerical mistake. They told the insurer to pay a goodwill gesture of £100.

Thats a closer match to this case. However, I would still argue the point and complain. Use "I wouldnt have surrendered and suffered the surrender penalty at that time had you told me the correct values". The financial decisions were made based on the data they supplied etc etc.

Pobby

Thanks everyone who has replied to this thread.It was the poor performance of this policy that decid ed that it would be best to cash it in.

In fact one thing that got my goat was the rather matter of fact attitude to their mistake.Oh yes,we also chuckled about the stamped addressed envelope they ebclosed for me to send them a cheque.

Although I am in the fortunate position to pay this out i do feel inclined that should I have too pay it ,I will agree to make small monthly installments.

King_Weasel

Re the possible parallel with dunstonh's sad case, might it be significant that the error in his case was a factor of 10 and not the far smaller % error that Pobby encountered? Would a court consider that dunstonh's client should have realised something was wrong, whereas Pobby couldn't be expected to spot the error before cashing the cheque?

Not a lawyer, nor a FA. Just a thought for an expert to take up.

dunstonh

Re the possible parallel with dunstonh's sad case

Its even sadder. They had to equity release, went through loads of stress and the husband was dead within 2 years.

Would a court consider that dunstonh's client should have realised something was wrong,

That was the FOS's opinion. The figures were wrong and the client should have known that as it was a massive difference.

whereas Pobby couldn't be expected to spot the error before cashing the cheque?

In Pobby's case, I cannot see how she would know there was a difference and that may work in her favour.

Pobby

Just had a thought.I guess they use a computer to work out the amount owed.Then my guess is there are going to be a whole bunch of folk getting a similar letter.