In the complex world of financial services, mis-selling scandals have unfortunately become all too common, and undoubtedly, more will surface. At the end of 2023, Mrs. T reached out to us with a concern regarding her Free Standing Additional Voluntary Contribution (FSAVC) with Commercial Union, now known as Aviva. Our initial phone call was to establish the details of her situation and to understand the necessary steps to address her concerns. Following this, we promptly sent her an information pack along with the required forms at the beginning of 2024. Mrs. T diligently signed and returned these forms, ready to proceed.
However, Mrs. T did not have her policy information readily available. To assist her, we sent an information request to Commercial Union to retrieve the necessary details. After a few weeks, we were informed that they could not locate any records for Mrs. T. It is common practice for providers to initially provide this response, but our dedicated team knows that in most cases, they will have the records; it’s just a matter of getting them to look harder!
That said, on this occasion, we revisited the issue with Mrs. T, who managed to find a folder containing the pertinent paperwork, including the policy number. Armed with this information, we reassured her that filing a complaint would not impact her ongoing annuity with Aviva. We then submitted the detailed complaint on her behalf.
Aviva promptly acknowledged the complaint as they are required to do and informed us that they would investigate the matter. Shortly thereafter, they requested additional information via a questionnaire. Given our commitment to supporting our clients thoroughly, we scheduled a convenient time to call Mrs. T and assist her in completing the questionnaire. This ensured that all responses were accurate and avoided any potential misunderstandings.
Once Aviva received the signed questionnaire, they quickly upheld the complaint, acknowledging that the FSAVC had indeed been mis-sold. Initially, they proposed a calculation based on the charges within the FSAVC. We don’t know exactly how much compensation this calculation would have resulted in but anticipate it would be in the region of £6,000 to £8,000. After our experienced claims manager consulted with Mrs. T and gathered more detailed information, we appealed this decision, arguing that the complaint should be upheld on the basis of added years.
Our extremely detailed appeal was successful. Aviva agreed and requested further documents to finalize their investigation and calculations. These documents were promptly gathered and submitted. By mid-July, we received an offer from Aviva for a compensation amount of £61,297.26.
When we shared this news with Mrs. T, she was understandably shell-shocked. Her husband also expressed immense gratitude for our persistence and diligence in ensuring the correct amount of compensation was awarded.
Mrs. T, like many other Teachers, diligently contributed to her pension through the Teachers’ Pension Scheme (TPS), aiming to secure a stable financial future. Seeking to enhance her pension benefits, she was persuaded to invest in an FSAVC by Commercial Union, enticed by promises of greater returns. However, what seemed like a prudent decision at the time turned into a source of regret as the true nature of the investment unfolded.
In her review, Mrs. T highlighted her deep appreciation for It Is Your Money’s role in raising awareness about mis-sold FSAVCs to teachers in the 1990s. She was relieved and grateful for the substantial compensation she received, which was a direct result of our dedicated efforts.
This case underscores the importance of thorough investigation, persistent advocacy, and comprehensive support in financial matters. At It Is Your Money, we are committed to ensuring our clients receive the justice and compensation they deserve. Mrs. T’s experience is a testament to our dedication and the positive impact we strive to achieve for all our clients.