Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Assumpta
    • By Assumpta 9th Mar 18, 10:16 AM
    • 2Posts
    • 0Thanks
    Assumpta
    Miss sold AVC
    • #1
    • 9th Mar 18, 10:16 AM
    Miss sold AVC 9th Mar 18 at 10:16 AM
    I took out a small AVC in 1996 and wanted to withdraw it as I hope to retire within the next two months. When I phoned Prudential to inquire about this I was informed that it was life cover only and there was nothing to withdraw. The monthly payment started at 4 in 1996, increased to 7.00 in 2002 and 10 in 2011. I already have a Life Insurance policy with another company costing 80 per month, which i took out about 20 years ago and I was not aware that the contribution I was making to my AVC was for Life Cover( if I had wanted to increase my Life Cover I would have added it to my main policy) The amount I have paid in to date is 1863. How can i go about proving that this was a miss sold this product?
Page 1
    • Brynsam
    • By Brynsam 9th Mar 18, 10:34 AM
    • 922 Posts
    • 604 Thanks
    Brynsam
    • #2
    • 9th Mar 18, 10:34 AM
    • #2
    • 9th Mar 18, 10:34 AM
    What paperwork have you got? Simply saying you were 'not aware' isn't enough to prove misselling. If you can't find anything, ask the Pru to let you have a copy of your application form - if they can and it shows you ticked the 'life cover' option, you have no claim.

    Is this a Local Government AVC? Sounds like it.
    Last edited by Brynsam; 09-03-2018 at 2:18 PM.
    • dunstonh
    • By dunstonh 9th Mar 18, 11:03 AM
    • 92,580 Posts
    • 59,889 Thanks
    dunstonh
    • #3
    • 9th Mar 18, 11:03 AM
    • #3
    • 9th Mar 18, 11:03 AM
    Pleased you mentioned the year as it lets us know the regulatory disclosures that were in place at that time.

    How can i go about proving that this was a miss sold this product?
    You probably cant. You can let us know what documentation you have that makes you think it was an AVC.

    In 1996, you would have been issued with a quote that would clearly state the life assurance amounts on it and the premiums you would be paying. Nowhere would it mention funds, values or projections to retirement.

    Life assurance would require you to answer a range of medical/health questions and provide GP details. Pensions would not. It would be a paper application in 1996 too. Would filling out a paper application for life assurance not set off any alarm bells?

    That would be sent to the insurer. Who would then underwrite it and then issue a quote again confirming the terms and what it covers and does along with the cancellation rights. You would find the policy document arriving shortly afterwards with a thank you letter for buying the life assurance.

    You dont get statements on life assurance. So, why did you never query why you were not getting pension statements?

    So, unless you have documentation that suggests otherwise, it is going to be pretty difficult to say you thought you had a pension.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • longleggedhair
    • By longleggedhair 9th Mar 18, 11:07 AM
    • 306 Posts
    • 373 Thanks
    longleggedhair
    • #4
    • 9th Mar 18, 11:07 AM
    • #4
    • 9th Mar 18, 11:07 AM
    Sounds like one of the public sector AVCs, which is odd, as at that time Equitable Life provided the life cover & the Pru offered its with profits AVC.
    • dunstonh
    • By dunstonh 9th Mar 18, 11:54 AM
    • 92,580 Posts
    • 59,889 Thanks
    dunstonh
    • #5
    • 9th Mar 18, 11:54 AM
    • #5
    • 9th Mar 18, 11:54 AM
    IIRC, the Pru reps could move to their own range when agreed.

    in 1996, you could buy pension term assurance and FSAVC term assurance. Whilst you can no longer buy those (as rule changes indirectly made them impossible to offer) people that had them were allowed to keep them.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Brynsam
    • By Brynsam 9th Mar 18, 2:20 PM
    • 922 Posts
    • 604 Thanks
    Brynsam
    • #6
    • 9th Mar 18, 2:20 PM
    • #6
    • 9th Mar 18, 2:20 PM
    Extract from LGPS AVC Pru booklet:

    Can I use my AVC to provide optional Life Cover?
    You can use AVCs to fund optional life cover for yourself, your spouse and/or dependants or a dependant pension if required. The cost of this cover increases every three years for the level of cover selected. The end date of your life cover will be dependent on the scheme rules which applied when you elected to join your AVC.

    Ring any bells? The increases in payment (although not 3-yearly) would fit with this.
    • Assumpta
    • By Assumpta 10th Mar 18, 8:53 AM
    • 2 Posts
    • 0 Thanks
    Assumpta
    • #7
    • 10th Mar 18, 8:53 AM
    Miss sold AVC
    • #7
    • 10th Mar 18, 8:53 AM
    Many thanks for prompt replies. It was a teacher's AV through Education dept.. I don't have any paperwork and will request it from Pru. Don't remember completing medical information questions or documentation at the time - seem to remember it as a box ticking exercise - I am pretty good at keeping documentation
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

87Posts Today

2,290Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin