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With profits bond
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>:(Wanted to cash in my Life with Profits bond, with a reputable company. On 1st March, I received a telephone valuation which I was happy with. I posted my written application which was received on the 2nd March (confirmed by the company). In due course I received my cheque which was more than £900 less than the telephone valuation! I complained, and the company apologised and stated that they had introduced a Market Value Adjustment on the 26th February. They offered £50 by way of an apology. I refused the offer and, after several more communications, they are now offering £300. I have contacted the Financial Ombudsman, but little help. Can I get ther company to pay up the full amount?
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Are you suggesting I accept what is on offer?
Looks like they are seeing that they are on the wrong side here if they are offering £300.
Keep plugging!!
I might be inclined to argue that point, but it really isn't your strongest point. Your strongest point is their telephone quote, of which they almost certainly have a record. Insist that they check the recording of the telephone conversation.
I would keep trying for the full amount. I wouldn't accept less than £600, but if they offer that, you really haven't done too poorly, probably. Good luck, and let us know how it comes out.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?
I've got a Scottish Provident with profits bond, five years old worth 18k now want to sell. M.V.A is 4k is this right or am I being had?
I have noticed that some plans have had an increase in the MVR over the last month but nothing at that point earlier in the year.
I would guess that you asked for a surrender value and you were given that without reference to a market value reduction. Quite a few companies give you three figures. Current, surrender and market value reduction.
Some with profit funds are unitised and have a different style of smoothing so the value can drop. Again knowing the company would answer that.
It does seem strange that they are offering you any money although amounts upto £300 dont necessarily mean they accept they are in the wrong but its just cheaper to get rid of you and not have the admin costs or fsa fees to pay for taking the complaint further. Of course, they may have listened to the tape of your phone call and the member of staff may not have given all the usual warnings about the value not being guaranteed and potentially subject to MVR. In which case they would be eager to offer you something.
Awkward, that seems perfectly acceptable to me. Scot Prov arent that good for with profits and i have never recommended them for that but thats not much use to you now
What was the amount of the original investment 5 years ago.
4k is 22% of the current value so the GEC distribution bond would have to make 22% just to break even.
I dont know enough about your details to give advice so consider this further research to be done
I'm in IFA so should know these things.... who the heck is GEC??? Closest i could think of was GE Life. Im not showing any GEC or anyone beginning with G in the distribution bonds list (which is now about 2 weeks out of date).
Is there any initial allocation on this new investment to help recover some of this 22% MVR?
Is there any MVR free period on your scot prov bond. Some had a 10 year anniversary get out mvr free date.
It may be better to wait it out and take the benefits in 5 years time MVR free or look at alternatives which give you high initial allocation and penalty free withdrawal in 5 years time.
Skandia currently have a 120% allocation bond. Its not suitable for everyone and has a 10 year tie in but after the 10th anniversary, you can get out penalty free. The product isnt great but with high MVRs it can be some people's last resort.
I recently had someone in the same situation and decided that to refund the initial commission and go with another provider with a decent upfront allocation. it worked out to be 108% allocation. We then used property, corp bond, fixed int accounts with a view to sitting the next 5 years out to then take the benefits free of any penalty and then make a clean start. (dont get me wrong, the funds selected werent duff, they included the morley property fund for example).
Can you give some more info on this GEC thing then?
this G E C is General Electric Corporation paying about 6.2% p a. my IFA say little capital risk. Original investment was 15k in 1999 but I did get a benefit from its change of Mutual status. Hope this helps!