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my parents and their 'retirement advisor'

(2 Posts)
cronetto Mon 23-May-16 14:44:49

So, in 2004 my parents had a home visit from a retirement advisor. It appears they bought several products and it is only now, as they are increasingly hard up and we have to help them, that the truth of it is becoming clear.

The first thing they bought was a whole of life policy, which I pay with my brother. It was supposed to pay out 400k (just imagine, for only £120 per month from age 70 - the figures don't really add up). We have now been notified by the company (the widow) that the plan has been readjusted (downwards). This isn't too bad, as we will break even.

But now it turns out they also released 80 in equity from their home at the same time, and the loan has now increased with interest to 220k. You can only get out by paying back the loan plus a 9k penalty charge.

I feel pretty upset for them. They just wanted to be sure we inherited something (neither of us need it or want it).

Are these schemes legally watertight, or can they be described as missold? I am particularly upset this person came into their home - my DPs are more polite than they are financially savvy.

I am getting the paperwork at the weekend for this loan, and will try to find someone to advise us.

I just wondered if anyone had any experience of this.

concertplayer Tue 31-May-16 20:42:56

The Financial Conduct Authority regulate here and so first of all
you need to check the companies' registration with them.
If they are FCA registered then the FCA may advise/explain etc.
if these companies are not FCA registered then you are less likely
to have any comeback.
There are plenty of these advisors about -they are just salesman in
essence . Plenty of people preying on the vulnerable/elderly.
Good advisors will give the pros and cons of all decisions and
remind of 14 day cooling off periods.
Have they got pensions? Make sure they have not done anything to
these either. Hope FCA can help you

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