Questions of Cash: We were told to put our cash in a TEP. Now we can't get it


Q My partner and I were advised by our financial adviser to put £43,000 into a TEP, or traded endowment policy. We wanted somewhere safe and accessible for our money until we purchased a property abroad.

Q My partner and I were advised by our financial adviser to put £43,000 into a TEP, or traded endowment policy. We wanted somewhere safe and accessible for our money until we purchased a property abroad.

We now find out we will incur huge penalties if we remove our funds early. I believe we were wrongly advised. Can we get our money back? NH, by e-mail

A You are correct that buying into a TEP looks like a very bad decision with hindsight. It was not a "safe and accessible" investment. With the falls in the stock market leading to a collapse in bonuses on with-profits endowments, the bottom has fallen out of the TEP market.

Your IFA's advice should have been very strongly hedged with warnings about the high risk attached to buying a TEP and the possible difficulty in recovering your money. If it was not, you should pursue a compensation claim from the IFA. If a suitable offer is not made you should then lodge a complaint with the Financial Ombudsman Service (0845 080 1800), which is likely to be sympathetic.

Q Further to your answer on the deposit protection scheme (Questions of Cash, 8 March), does the £31,700 protection from the scheme apply per account, or per individual? Do I get twice the protection if I open two accounts? CR, by e-mail.

A The compensation limit (where an institution is unable to repay its deposits) applies per depositor, not account. For details, visit the Financial Services Compensation Scheme at www.fscs.org.uk.

Q I am in dispute with a hire-car company based in Edinburgh, Capital Car and Van Hire, over its failure to return a £100 deposit that was paid by credit card. It keeps promising to send me a cheque that never arrives. I understand if the sum were higher than £100 the credit card company would help. I am worried about legal action because this would mean using Scottish law. WJ, Dorset

A Capital Car and Van Hire tells us that it did send you a cheque to repay the deposit, but this was apparently lost in the post. It adds that as soon as it learnt this did not arrive it sent you a replacement, which you should by now have received.

You are correct that, under the Consumer Credit Act, credit-card issuers have only joint liability with the seller of goods or services above the figure of £100 and none, as in your case, where the figure is exactly £100. But many banks will assist customers to resolve credit card payment disputes even where they have no legal responsibility for doing so.

If you have any questions about personal finance topics or problems, please write to Questions of Cash, 'The Independent', 191 Marsh Wall, London E14 9RS, or e-mail cash@independent.co.uk. We regret that we can reply only to letters published here. Please send copies, not originals, as we cannot undertake to return material.

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

PROMOTED VIDEO
Life and Style
Suited and booted in the Lanvin show at the Paris menswear collections
fashionParis Fashion Week
Arts and Entertainment
Kara Tointon and Jeremy Piven star in Mr Selfridge
tvActress Kara Tointon on what to expect from Series 3
Voices
Winston Churchill, then prime minister, outside No 10 in June 1943
voicesA C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
News
i100
News
An asteroid is set to pass so close to Earth it will be visible with binoculars
news
Arts and Entertainment
Benedict Cumberbatch has spoken about the lack of opportunities for black British actors in the UK
film
News
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Tax Assistant

    Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...

    Recruitment Genius: Outbound Sales Executive - OTE £25,000

    £16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...

    Ashdown Group: Java Developer / J2EE Developer - Watford - £45,000 - £47,000

    £45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...

    Ashdown Group: Marketing Product Manager - (Financial Services) - SW London

    £35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

    Day In a Page

    Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

    Celebrities call on David Cameron to take more Syrian refugees

    One young mother tells of torture by Assad regime
    The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

    The enemy within

    People who hear voices in their heads are being encouraged to talk back
    'In Auschwitz you got used to anything'

    'In Auschwitz you got used to anything'

    Survivors of the Nazi concentration camp remember its horror, 70 years on
    Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

    Autumn/winter menswear 2015

    The uniforms that make up modern life come to the fore
    'I'm gay, and plan to fight military homophobia'

    'I'm gay, and plan to fight military homophobia'

    Army general planning to come out
    Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

    What the six wise men told Tony Blair

    Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
    25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

    25 years of The Independent on Sunday

    The stories, the writers and the changes over the last quarter of a century
    Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

    Homeless Veterans appeal

    As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
    Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

    Smash hit go under the hammer

    It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
    Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

    The geeks who rocked the world

    A new documentary looks back at origins of the computer-games industry
    Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

    Belle & Sebastian is taking a new direction

    Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea
    America: Land of the free, home of the political dynasty

    America: Land of the free, home of the political dynasty

    These days in the US things are pretty much stuck where they are, both in politics and society at large, says Rupert Cornwell
    A graphic history of US civil rights – in comic book form

    A graphic history of US civil rights – in comic book form

    A veteran of the Fifties campaigns is inspiring a new generation of activists
    Winston Churchill: the enigma of a British hero

    Winston Churchill: the enigma of a British hero

    A C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
    Growing mussels: Precious freshwater shellfish are thriving in a unique green project

    Growing mussels

    Precious freshwater shellfish are thriving in a unique green project