Irish Life enforces redemptions

garyh3

Ok Bought a Bonus saver plan from PTSB.... about a year ago

Was looking for a savings plan as at the time I didnt have a savings account. I was at PTSB with my current account so went to speak to there financial advisor. They put me onto this Bonus saver plan.... Was given assurances that I could take my money out anytime and that I could move between the policy plans if I felt that the current plan wsa not working for me.

So about 4 monts ago I received a backdated letter from Irish life stating that I could not take my money out or move between plans for 6 months.

I wrote a letter to Irish life cancelling my plan as at the time I fet that It was going to loose mony in the future due to the economic turn down.

I have put 6400 euro's of saving over the past year. 3 months ago it was worth 6000 and now it is worth 5000.

Do I have a case with PTSB as I was not told that Irish life may invoke this 6 months redemptions caluse. If I had known I would not have chosen this policy as I need to get at my saving now and not 6 months

or what are my options?

any advice appreciated

Garyh

Something does not add up here.

What do you mean by 'move between the policy plans'?

What fund/s are you invested in? I don't think that there are any property funds available the product you mentioned.

What was the reason offfered as to why they were imposing a 6 month 'redemption clause'?

garyh3

Hi GerardS

Its a bonussaver plus account and at the start you have to pick you fund. So I picked the Property Fund, there are also Balance Fund and Consensus Fund.

My questions at the time was that if the fund is uderperforming can I switch any time? The answer was Yes

Another question I asked. Can I cash out any time? The answer was yes?

What annoyed me the most was that PTSB did not inform me that IRISH LIFE were going to invoke 6 Months waite to cash out or switch funds.

Irish Life gave me a backdated letter stating that from 16 January 08 (I received in 2nd February 08) that they had done this. The reason was too many short term ivestors cashing out Bla Bla Bla (Are they allowered to do this? ie send a letter after they had imposed this delay


I was given no options to cash out or to move to another fund for 6 months and at the 6 month rate

Garyh

Hi garyh,

I think that your issue is with PTSB and their Financial Advisor, taking account of the specific questions you asked and the replies you received.

I am not familiar with the specific product that PTSB offer but the policy conditions of another Irish Life savings product states ;

Funds containing property - When more customers are cashing in their investments than making new investments in any fund that invests in property, the value of the units may undergo a reduction to reflect a proportion of the costs associated with buying and selling property.

Cashing in all or part of your plan -... if you are invested in the Property Portfolio Fund, the Eurasia Property Fund, the Eurasia Property Plus Fund or the UK Property Fund, it is possible that you may have to give us up to six months’ notice in writing before you can cash in any part of your investment that is invested in these funds.

You should probably take it up with PTSB. Put your case/complaint in writing to them and await a written reply. If you are not happy with their response you can refer the matter to the Financial Services Ombudsman for adjudication.

Hope this helps.

garyh3

Thanks GerardS

Yes I have done that a couple of day ago as I think PTSB should be made accountable as I was only looking for a savings account to which I got good interest and that I could put money in and take mone out when necessary.

That was my main criteria when speaking to there financial advisor.


and yes I do agree with Irish Life in that the should be able to impose this 6 moths grace period during financial hard times, but what I dont agree with is to inform me after the fact so that I cannot decide if I want to cash out or move to another fund. Its very underhanded.

Garyh

kaiser sauze

garyh3 wrote: »

Its a bonussaver plus account and at the start you have to pick you fund. So I picked the Property Fund, there are also Balance Fund and Consensus Fund.

If your advisor gave you the advice to go into property a year ago, s/he wants his/her head examined. If you picked that, after being properly explained the risks, caveat emptor.

My questions at the time was that if the fund is uderperforming can I switch any time? The answer was Yes

True...

Another question I asked. Can I cash out any time? The answer was yes?

...also true...

What annoyed me the most was that PTSB did not inform me that IRISH LIFE were going to invoke 6 Months waite to cash out or switch funds.

...unless they invoke this clause.

If your advisor did not make this clear to you, you have a good case for the Ombusdman. However, you need to make your complaint in writing to PTSB first.

Irish Life gave me a backdated letter stating that from 16 January 08 (I received in 2nd February 08) that they had done this. The reason was too many short term ivestors cashing out Bla Bla Bla (Are they allowered to do this? ie send a letter after they had imposed this delay

Yes, but it is bad form.

I was given no options to cash out or to move to another fund for 6 months and at the 6 month rate

They are under no obligation to do so.