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.

PROMOTED VIDEO
Life and Style
Phillips Idowu, Stella McCartney and Jessica Ennis
fashionMcCartney to continue designing Team GB Olympics kit until 2016
Sport
Shinji Kagawa and Reece James celebrate after the latter scores in Manchester United's 7-0 victory over LA Galaxy
football
Voices
voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
Sport
Farah returns to the track with something to prove
Commonwealth games
Life and Style
fashion Designs are part of feminist art project by a British student
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

    Junior Research Analyst - Recruitment Resourcer

    £18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...

    Senior Analyst - Financial Modelling

    competitive: Progressive Recruitment: This really is a fantastic chance to joi...

    Associate CXL Consultant

    £40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

    Business Anaylst

    £60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...

    Day In a Page

    Backhanders, bribery and abuses of power have soared in China as economy surges

    Bribery and abuses of power soar in China

    The bribery is fuelled by the surge in China's economy but the rules of corruption are subtle and unspoken, finds Evan Osnos, as he learns the dark arts from a master
    Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

    Screwing your way to the top?

    Good for Lana Del Rey for helping kill that myth, says Grace Dent
    Will the young Britons fighting in Syria be allowed to return home and resume their lives?

    Will Britons fighting in Syria be able to resume their lives?

    Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
    Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

    Beyoncé poses as Rosie the Riveter

    The wartime poster girl became the ultimate American symbol of female empowerment
    The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

    The quest to find the perfect pair of earphones

    Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
    US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

    Meet the US Army's shooting star

    Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
    Climate change threatens to make the antarctic fur seal extinct

    Take a good look while you can

    How climate change could wipe out this seal
    Should emergency hospital weddings be made easier for the terminally ill?

    Farewell, my lovely

    Should emergency hospital weddings be made easier?
    Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

    Crowdfunded novel nominated for Booker Prize

    Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
    Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

    Vladimir Putin employs a full-time food taster

    John Walsh salutes those brave souls who have, throughout history, put their knives on the line
    Tour de France effect brings Hollywood blockbusters to Yorkshire

    Tour de France effect brings Hollywood blockbusters to Yorkshire

    A $25m thriller starring Sam Worthington to be made in God's Own Country
    Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

    Will The Minerva Project change the face of higher learning?

    The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
    The 10 best pedicure products

    Feet treat: 10 best pedicure products

    Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
    Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

    Commonwealth Games 2014

    Great Scots! Planes and pipers welcome in Glasgow's Games
    Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

    Jack Pitt-Brooke

    Manchester City and Patrick Vieira make the right stand on racism