Hi

I need some real help with this .... my parents took out a Pegasus Wealth Preservation Plan in 2005. I had no knowledge of this but it is what it is. Apparently it was advised for the to take this out to reduce their potential tax liability on death. This is ridiculous as there is no way to avoid inheritance tax in reality !!

Any way they were told that they would be paying £65 per month and that there would be a review at some point in the policy. However, having looked at all the paperwork there is no review mentioned or no review date mentioned. They were also told that if and when a review did occurs the increase in the premium would be small. When I read the renewal paperwork it has increased to almost £400 per month !!!

Now my query is what should they do..... My father was 63 when he was sold the policy. The plan schedule is very misleading as it does not mentioning review at all. Also in their Standard Provisions of the plan There is no clear percentage rise in premiums stated at all. My father cannot afford the premiums going forward and he feels completely cheated and miss old the policy as it is not doing what he asked for.

What can I do???

The policy renewal is due on the 11th march 2015 so I actually have very little time to deal with this. I have contacted the Financial Ombudsman who has advised to write to the company directly and then they have 8 weeks to respond,...... Is this correct??

Also what do I write to them and say??

Any advice would really help. I hate seeing my parents being conned in this way.

Thanks

GB

As add on my father has just told me that he has asked for the surrender value of the policy (which will almost certainly be next to nothing!!). I have advised him NOT to surrender the policy or he will lose any rights of appeal or contest... Is that the fit thing to do ??

Hello there.

My understanding is that the ombudsman only gets involved once you've been through the complaints procedure with the company. They're allowed 8 weeks to try to resolve this with you.

HB

I've just googled Pegasus Wealth Preservation plan, was it offered by Scottish Provident? And were your parents sold it direct by Scot Prov or via a broker please?

If it was a broker, that's who your complaint is with, I think.

HB

H

That's is e correct one. And yes they went through a broker... Who I have asked them to give me all policies sold to them by so I can take a look at them.... Wo do I need to complain to ?? And is there a form or letter template that I can use?

Thanks honeybee for taking time to answer.

H

 

That's is e correct one. And yes they went through a broker... Who I have asked them to give me all policies sold to them by so I can take a look at them.... Wo do I need to complain to ?? And is there a form or letter template that I can use?

 

Thanks honeybee for taking time to answer.

I don't think there is a template as every case is different.

As I said, your complaint is with the broker who sold the policy, if you feel the policy wasn't suitable or your parents weren't told everything about it. If they bought 10 years ago, they should have been given something like a 'reason why' letter explaining why the policy was appropriate, plus a Key Features document about the product. I might be out of date on the names for these, but the idea should be the same.

You would write to the brokers explaining why you think your parents shouldn't have been sold the plan. They then have 8 weeks to try and resolve the complaint and if you don't agree, you go to the ombudsman.

HB

As this is an insurance query rather than PPI, I'll move you to the other forum.

HB

Ok. Thanks for the advice.

So i will write to the broker and company. Can i ask that they freeze any further payments, etc, until this matter is dealt with?

Also do i need to specify an ideal outcome??

I don't think you complain to both, I'll see if I can find something online later today. I would start with the broker because they recommended the product.

I don't know the answer about premiums. Scot Prov might be able to suggest a solution to you. Or the ombudsman might have knowledge of this if you ask.

What is the premium increase for please?

HB

This is from the ombudsman's website on how to raise a complaint.

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

HB