Endownment Maturity Payment Form

mrkjd · 21 October 2018 at 6:35AM

I have a Prudential Endowment that is about to mature. They have sent a "Maturity Payment Form" where I am expected to sign a declaration:

"I/We accept that the maturity payment of this plan will be a full and final discharge of Prudential's liability under this plan"

The form does not tell me how much it will pay out. How can I sign that I agree the final payment if I haven't even been told what it is? And why should I sign away any future right to hold them liable for something that may arise in the future under due process?

Surely this is not acceptable practice and unfair contract? They first said I could "cross out" the bits I didn't agree with but later wrote to me and retracted that and are now saying if I don't sign they won't release and won't be liable for any interest accruing (which complicates things as I already crossed out the "dodgy bits" and left it in the UK with my wife to post before they sent the letter retracting that compromise and I am now overseas with work and won't get back to sign a new form until after the maturation date)

My view is that I will sign for receipt and to agree the amount paid into my account once they tell me what the amount is and can confirm it has reached my account but they are liable to any interest if the amount is delayed beyond the maturation date or I dispute the amount and the IFO upholds my case.

And on a more general note, how can Financial Organisations get away this sort of thing. Asking a Policy Holder to effectively sign away their rights under Consumer Law under the threat of not releasing a due sum is like something under a sleazy double glazing contract! Is this common practice? Shouldn't we be doing something about it if it is?

Nearlyold · 21 October 2018 at 7:52AM

It's referring to the insurance liability under the plan ie you will no longer be covered for death etc. Yes it's common practice across all insurance providers to confirm the plan benefits will cease, they won't have inserted that clause just for you. IMHO you are over reacting.

dunstonh · 21 October 2018 at 12:06PM

The form does not tell me how much it will pay out. How can I sign that I agree the final payment if I haven't even been told what it is?

If you don't agree to it they won't pay it. They can't tell you the value until it matures as values change daily.

and why should I sign away any future right to hold them liable for something that may arise in the future under due process?

These plans are old fashioned and use old-fashioned language. The liability is referring to what the plan covers. Typically used when you are not returning the policy document.

Surely this is not acceptable practice and unfair contract?

How exactly is it unfair and unacceptable?

And on a more general note, how can Financial Organisations get away this sort of thing.

They are not getting away with anything. You are making a mountain out of a mole hole. You say you have left the UK. Perhaps English is not your first language and that is why you are misunderstanding it? However, there is absolutely nothing wrong or incorrect with their wording.

Asking a Policy Holder to effectively sign away their rights under Consumer Law under the threat of not releasing a due sum is like something under a sleazy double glazing contract!

They are not asking you to sign away your rights. They are getting you to confirm that you accept the payment in exchange for the policy liability ending. It is a belt and braces confirmation that the policy is ending its liability (death cover) and you are getting the payout on the maturity value in exchange.

Is this common practice? Shouldn't we be doing something about it if it is?

Yes, it is. And there is nothing to be done about it. All quite normal and correct.

mrkjd · 21 October 2018 at 12:33PM

Thanks for the input Nearlyold. So you infer it only relates to the insurance element because it refers to "under" the plan? Is that correct? That definition of the declaration seems to place an awful lot of faith on the legal meaning of "under" in this context.

It actually says "The maturity payment will be a full and final discharge of liability" . To me it reads "you can't sue us for anything to do with the maturity payment you (may) come across later once we pay you". Is it acceptable that a single sentence declaration can have such polar interpretations?

And it is also asking me to sign to agree "the payment" when I have not been told how much it is!

This isn't just semantics, it's about consumer rights and legal recourse. If the statement's legally binding (and what's the point in asking for it in the first place if Prudential don't consider that to be the case) then it needs to be written properly and it should specifically say "Insurance Benefits" or similar. I would have no issue with that. Is it deliberately vague and ambiguous? Whilst I'm fairly sure they wouldn't give me a tenner and say "you signed that you agreed", forgive me if I'm not particularly trustworthy of large financial institutions in general and the Prudential in particular.

I agree, they wouldn't just write the clause for me. So that makes it all the more concerning. There's no excuse for what could tactfully be termed "sharp practice" that pressures Policy Holders in such a position under an implied threat of delayed payment.

I will pursue this to the FOS for their review but am interested in what people on this forum think and what experiences they may have had when an endowment matures.

Thrugelmir · 21 October 2018 at 12:56PM

mrkjd wrote: »

This isn't just semantics,

To me it reads "you can't sue us for anything to do with the maturity payment you (may) come across later once we pay you".

I would disagree. Rather than waste the FOS's time suggest you consult a suitable solicitor versed in such matters. To gain a full and proper understanding of the legalities.

You can then decide whether to contest the requirement on behalf of thousands of similar policyholders through the courts.

dunstonh · 21 October 2018 at 1:50PM

And it is also asking me to sign to agree "the payment" when I have not been told how much it is!

That is fine. You can wait until after maturity when the maturity value is known to return the form and then get the payment a number of weeks later. If you are using the endowment to pay a mortgage you will suffer interest on that because of the delay you are causing. If you are happy to do that, then that is your choice.

Otherwise, there is no way you can know the value of a maturity in advance of the maturity.

This isn't just semantics, it's about consumer rights and legal recourse.

And acting like an armchair solicitor in your case.

I will pursue this to the FOS for their review but am interested in what people on this forum think and what experiences they may have had when an endowment matures.

Oh !!!!!!. What a complete waste of time and money for all those involved. Once again, other consumers will end up paying for stupid and pointless complaints because someone just wants to be difficult for the sake of being difficult. Are you one of those people who writes to the council a 1000 times a year to complain about pointless things?

AnotherJoe · 21 October 2018 at 2:10PM

mrkjd wrote: »

I have a Prudential Endowment that is about to mature. They have sent a "Maturity Payment Form" where I am expected to sign a declaration:

"I/We accept that the maturity payment of this plan will be a full and final discharge of Prudential's liability under this plan"

The form does not tell me how much it will pay out. How can I sign that I agree the final payment if I haven't even been told what it is?

Do you have the ability to change what it will pay out then? Nice. You must have better policies than i did, I'm positive when i got my endowment sums paid there was never an option to say "not enough pay me more"

mrkjd wrote: »

And why should I sign away any future right to hold them liable for something that may arise in the future under due process?

And what, even hypothetically, might that be?

mrkjd · 21 October 2018 at 6:46PM

dunstonh, you seem to ranting a little. I see you're a "financial advisor" Oh !!!!!! are you one of those who sells pointless advice a 1000 time s a year?

Thanks for your earlier contribution but please don't bother posting further unless you've got something constructive to say

dunstonh · 21 October 2018 at 7:43PM

dunstonh, you seem to ranting a little.

Ranting? I'm not the one saying they will be going to the FOS over a standard maturity form.

I see you're a "financial advisor" Oh !!!!!! are you one of those who sells pointless advice a 1000 time s a year?

You know that is libellous as a number of people on this site know my identity.

mrkjd · 21 October 2018 at 8:15PM

Who's being the "armchair solicitor" now dunshonh?

And do you realise how silly you sound? Bleating about my considering the FOS yet claiming libel against something I paraphrased from one of your previous statements about me. Pathetic. Now please just go away and troll someone else's posts

davidmcn · 21 October 2018 at 8:25PM

mrkjd wrote: »

I am interested in what people on this forum think

I think you've got too much time on your hands. They can't acquire the right to rip off their customers via a cunningly-worded form. Just sign it and take your money.

Endownment Maturity Payment Form

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