As a teacher, in 1991, Mrs. B had invested in an FSAVC with Teachers Assurance to supplement her pension. However, over time, she grew uncertain about the product and suspected that it might have been mis-sold to her. After seeing our advertisement, Mrs. B decided to get in touch with us to investigate her concerns further.
Taking Action
After thoroughly reviewing Mrs. B’s situation, we identified multiple indicators suggesting that her FSAVC with Teachers Assurance had been mis-sold. Our primary argument was that Mrs. B had not been properly informed about the full implications of the FSAVC.
With these findings, we built a compelling case and submitted a formal complaint on Mrs. B’s behalf to Teachers Assurance. We outlined that Mrs. B had inadequately informed about the structure of the Free Standing Additional Voluntary Contributions (FSAVC) she held with Teachers Assurance worked or the alternatives that were available to her that might have been more suitable to her needs.
By presenting these arguments, we emphasised that Teachers Assurance had a responsibility to ensure that Mrs. B fully understood both the features and limitations of the FSAVC product, as well as any more beneficial alternatives that might have better suited her retirement goals. This oversight led Mrs. B to make financial decisions that ultimately did not align with her best interests.
The Response
Two months later, we received a response from Teachers Assurance, who had agreed to uphold the complaint partially. They acknowledged that the charges were excessive and had not been disclosed adequately.
We don’t know exactly how much compensation this calculation would have resulted in but anticipate it would be in the region of £3,000 to £5,000. After our experienced claims manager consulted with Mrs. B and gathered more detailed information. We were now aiming to appeal this decision and argue based on Mrs B’s circumstances, that the complaint should be upheld on the basis of added years.
The Appeal Process
The appeal focused on age, future job prospects, attitude to risk and that the Teachers’ Pension Scheme (TPS) rules allow flexibility to purchase an affordable number of additional years without requiring them to buy the maximum, a flexibility that wasn’t fully considered in her case.
Given the complexity of the argument and appreciating that it’s not always easy to determine what actions a consumer may or may not, have taken after passage of so much time, Teachers Assurance took a further six weeks to investigate the appeal but concluded that we were correct and that based on her specific circumstances, Mrs B would’ve been able to purchase additional service and that this most probably would’ve have been more suitable to her needs.
Finalising the Compensation
Teachers Assurance then requested further documentation to finalise their investigation and calculations. We promptly gathered the required documents and submitted them, fully aware that the calculation process could take several months due to the involvement of a specialist actuary.
Throughout this lengthy process, we kept Mrs. B updated, ensuring she felt supported and informed every step of the way.
A Joyful Outcome
After 4 months, an offer of compensation was received for £18,737.87 and Mrs B was overjoyed and surprised, she said we had made her day. As said earlier, we don’t know exactly how much compensation would have been offered initially but we believe as a result of the appeal, there has been an increase of approximately £14,000.
Raising Awareness
At It Is Your Money, we take pride in our role in raising awareness about mis-sold FSAVCs to teachers in the 1990s. This case underscores the vital importance of thorough investigation in securing the justice and compensation our clients deserve.