Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Investments

Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Original poster

Really strange error & now mum owes thousands- help

441 replies

Helpmymum · 28/03/2021 19:18

I'll try and keep this as simple as possible, I'm just seeing if anyone has any advice or insight into how this might play out before we start contacting people tomorrow.

My elderly, widowed & (totally alone for the past year 😪) mother got a letter late Friday afternoon which was spent special delivery from a pension company. In short, it said that she took a bond out 20 years ago which was cashed in 15 years ago and her account was closed, she was no longer a customer. They then said that they are really sorry but they have just discovered during an audit that they had mistakenly used her bank account details with another bond for another customer and she has been receiving a monthly payment for the last 20 years in error. This amounts to an awful lot of money, tens of thousands of pounds. And it needs to be repaid. We have checked and she has been receiving the payment in her account.

She was widowed a long time ago and when my father died, my sister and I where both toddlers and so she employed a financial advisor to deal with the finances, obviosuly to eliviate the stress. She is not wealthy by any means, she owns a modest house (which was paid for by my dad's life insurance policy), has a small amount of savings (which is with the financial advisor invested in whatever he thinks) and collects her pension.

I can understand why she wouldn't question this money going in as she just left everything to the financial advisor, he obviously opened the bond and cashed it out and payments of this nature were expected/ perfectly normal.

After receiving the letter, my sister immediately called the financial advisor who said he had never dealt with anything like this before and was working from home, he would need to go into the office on Monday morning to have a look at the records. My sister then called the company in question, it's a large, well known company so she didn't take the number from the letter just incase it was a scam and found the number from Google. She called and a person in the company could not find any record of this or the letter having been sent out, however she did say she wasn't part of the relevant department and the person who's signature was on the letter did infact work there. It was so late on Friday afternoon, there was no one there who could help or knew anymore.

My poor mum has been in an absolute state all weekend, she's thinking she is going to have to sell her house to pay this back. I think technically she does owe the money as we can see she has recieved it. Does anyone have any idea of what might happen?

First thing tomorrow is a call to citizens advice and legal advice, obviosuly talk to the financial advisor and the company in question too.

I think I'm just asking if anyone knows what we might be in for here?

Thanks

OP posts:
user1471549213 · 05/04/2021 14:11

Please tell your mum not to worry. I would continue with the mantra of not our mistake, your mum is frail and elderly and was not deceiving them, just assumed after discussions with financial advisor that this payment was correct. Otherwise would certainly have questioned it. There is no deception here. The company have made a mistake but your mum has little means and can not afford to pay it back. Will actually struggle now with the payment stopping so will need to adjust to that also. Commit to nothing.

When you have fully established the facts and are happy as to the true value of the incorrect payments made, I would get further legal advice. I work in debt management and know that if we went to court with a case like this firstly anything over 6 years is statute barred (in Ireland here) so we would be told to forget about that. Secondly if any offer had been made to enter into a repayment plan we would have to accept it. So even if we were offered €20 a month its likely we wouldn't get a judgment on it. And this is with a legally established debt and person fully knowing money was owed and just not prioritising payment. In your mums case I'm not sure what a judge would say but im not sure id want to stand in front of a a judge and tell them id made a mistake and I now wanted an elderly lady to pay for it. I cant see them looking kindly on it at all.

memberofthewedding · 06/04/2021 13:28

Technically the trustees of the pension fund have a duty to attempt to correct their mistake and get the money back. In practical terms trial by social media is not a route they are likely to want to go down. It is, after all, their maladministration. This is not an accusation which companies like to have thrown at them. I would certainly launch a counter complaint using their grievance procedure. You would need to do that before involving the financial ombudsman.

ClaraSais · 17/04/2021 18:54

Is there any update? Hope someone has been able to help

CeeceeBloomingdale · 17/04/2021 19:07

In my line of work if we pay money to a customer in error we can ask them to return it but they are under no legal obligation to do so. This would be a lump sum, not a regular thing. I would also think there will be a limit to how far back they can go, financial records are traditionally only kept for 6 years plus the current financial year (so 7 years) so I doubt they can claim anything paid before then.

Original poster
Helpmymum · 17/04/2021 19:18

Hello,

Anyone interested in an update. The company have replied this week saying they cannot drop the matter and have requested 6 years worth of payments in either a lump sum or or payment schedule. We havnt replied yet, just considering what is best to do next Confused

OP posts:
bunburyscucumbersandwich · 17/04/2021 19:33

@Helpmymum

Hello,

Anyone interested in an update. The company have replied this week saying they cannot drop the matter and have requested 6 years worth of payments in either a lump sum or or payment schedule. We havnt replied yet, just considering what is best to do next Confused

If you did have to pay it back (I'm not sure about that!) then they have to give you as long to pay it back as they made the error for. So you could take the 6 years to pay it back.

But I think you really need legal advice or to contact the financial ombudsman.

tickingthebox73 · 17/04/2021 20:01

@Helpmymum

Hello,

Anyone interested in an update. The company have replied this week saying they cannot drop the matter and have requested 6 years worth of payments in either a lump sum or or payment schedule. We havnt replied yet, just considering what is best to do next Confused

I think you need a solicitor. Are you 100% sure this isn't a different bond or Widows payment?
OldMrGruber · 17/04/2021 20:06

Personally I think your first point of call would be the financial ombudsman. They are free whereas you'd pay for legal advice.

I used the FoS about 6 years ago and found them efficient (plus they found in my favour so I was very happy!)

You could write back to the company and say this is the route you intend to go down and you assume they will hold the matter until this avenue is exhausted given the whole thing has arisen from their error and it's been 15 years so they can wait, say, 6 months longer. Emphasise the elderly, widowed angle.

If the FoS don't find in your favour then you could get some legal advice. Or potentially do it parallel to the Ombudsman.

BingeOnChocolate · 17/04/2021 20:17

I would take the matter to the FOS as it's their error not your mums! They should be writing it off as a finical loss and put better processes in place to stop it happening again.

weewitch · 17/04/2021 20:23

Continue fighting Op - don't agree to this.

alexdgr8 · 18/04/2021 01:42

contact bbc money box, and /or mail online money section ?tony hetherington.
any other similar advice columns/ programmes.
good luck.
i think your mother is a star. none of this is her fault. she did nothing wrong. very few people understand financial matters and she had more pressing things to cope with.
try to big her up with reminding her how she gave you and your sister the best possible childhood in such sad circumstances.
this is small potatoes compared with that, and that is what really matters, and she got that right.
this can be dealt with, and will be.
people who are very sharp with money matters are often so sharp that other people get cut just passing by.
i know who i'd rather have around.

memberofthewedding · 18/04/2021 03:46

There is no way they would get a penny back from me unless ordered by a court, and they would get a pound a week. I would also subject them to trial by social media. They deserve the tabloids having a real go at them.

WeatherwaxOn · 18/04/2021 11:31

Definitely speak to the Financial Ombudsman at this point.
For a start, if it's taken 15 years for the company to notice an error, then it should be 15 years to pay back. BUT it seems preposterous to expect someone to have that amount of money to actually pay back.
Your mother's physical and mental health at relevant factors too.
Don't pay back.
Write back and say you are seeking further/legal advice if you feel you must respond right now.

TheTeenageYears · 18/04/2021 12:29

Ombudsman generally only get involved once you've followed the companies formal complaints process. That should be available on their website so next step would be to ensure you have followed that and then take it to the ombudsman to see what they say.

Souther · 23/04/2021 14:06

@Helpmymum

Hello,

Anyone interested in an update. The company have replied this week saying they cannot drop the matter and have requested 6 years worth of payments in either a lump sum or or payment schedule. We havnt replied yet, just considering what is best to do next Confused

I'm really sorry to hear that. I dont have much advice but hopefully someone else more knowledgable than me will be along soon.
Confusedandshaken · 23/04/2021 18:52

I would take legal advice and follow it to the letter.

HyggeTygge · 29/05/2021 20:09

@Helpmymum OP is there any update? I have been thinking about this for some reason!

ClaraSais · 29/05/2021 21:38

A long shot but maybe try Martin Lewis

stevalnamechanger · 06/06/2021 00:16

Any update on this? Hope all ok!

Gothichouse40 · 06/06/2021 00:19

If you find out for definite that it's not a scam. Try writing to the Financial Ombudsman, you will have to google as I'm not sure where their office is now.

Chalkitup · 06/06/2021 21:04

Do you have an update OP?

3luckystars · 08/06/2021 23:20

You could tell them that you will reply in 15 years time!!

I hope you got this sorted out. They made the mistake. All the best.

Original poster
Helpmymum · 09/06/2021 09:51

Hello everyone, just another update. Not really much further forward. I have contacted a solicitor who has told me she may have to pay it but in the first instance to instruct her to send a legal letter with a hard push back to see of they fold. The problem with this is the cost, that one letter will cost £1000+ and I'm pretty sure that won't be the end of it so I guess the further it goes the more the costs add up to alot. I don't want to commit to spending this type of money and at the end of it still having to pay out anyway so it's a tough one. I have sent a few emails back and forth with the company and have told them she's not in a position to discuss it with them, I don't have access to her financial information but if what they saying is true then she can't afford to pay it back anyway. They have asked for copies of her bank statement to prove her financial position but I'm not sure if that is a good idea and besides the fact I've told my mum not to worry about any of it and I have it sorted (she was in hospital again last week with a serious problem so I just can't put this on her now). I don't think I should be taking copies of her bank statements and sending them off without her knowledge. It's still very stressful and I'm not really sure what to do next.

OP posts:
TellingBone · 09/06/2021 12:21

Thanks for updating.

I'd take one positive from that: the fact that they seem to be asking for proof that your Mum couldn't afford to pay it back would appear to indicate that they might drop it rather than waste money pursuing it legally.

Please update when you have more news.

FlorenceWintle · 09/06/2021 12:38

Personally I would negotiate the lowest monthly amount possible as a repayment, like £50 a month or something, and move on. You could spend months battling this, the stress, expense....if you’re not willing or able to spend £1K on just an initial solicitor’s letter, then you’ll never manage to pay for the full legal representation you will need. I don’t think they’ll drop it and sadly, your mum was in the wrong by not querying it.