Critical illness payout

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carrie159
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by carrie159 » Thu May 24, 2018 5:21 pm
I recieved a critical illness payout and the the whole amour was taken from us, with no discussion of a compromise, when we were originally first told we would be able to keep this money, out IVA was started in Oct 2016 and payed off in January 2018 when they having been running for just over a year they still took approx £10k in fees for themselves, during the time we were on it they also took £1500 of which we recieved from HSF including a £300 recoperation Grant, plus approx £400 of interest over payment for a loan my husband and I had years ago. Is this right? As the recipient of a critical illness payment I certainly do not see it as a windfall!! Because this would mean I would have to consider my illness a windfall too! Is this correct that we were not given the opportunity to make a reasonable offer initially, ( we were intending to offer half the money, which was over and above the total amount) and that they took the hospital payment and recoperation grant from us? It has meant that I have no full back and had to go through treatment with the worry of what I would do if I needed to be off sick, because I had used all my sick pay. I would appreciate any advise you have to offer.
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Foggy
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by Foggy » Thu May 24, 2018 5:52 pm
Although they legally have the right to garner these funds I would hope that many, if not most, firms would compromise and allow the money, or at least part of it, to be retained for the purposes it was awarded !

Might I ask which firm this is ?
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carrie159
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by carrie159 » Thu May 24, 2018 5:58 pm
Foggy wrote:
Although they legally have the right to garner these funds I would hope that many, if not most, firms would compromise and allow the money, or at least part of it, to be retained for the purposes it was awarded !

Might I ask which firm this is ?


Yes, it was Vanguard.

They originally told us that we could keep it, until they found out how much it was, then they told us we needed to pay it all over and continue until the IVA was finished, they have not once shown any compassion.
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Lisa Thomas
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by Lisa Thomas » Fri May 25, 2018 8:23 am
Did they tell you in writing that you could keep it?

How much was it?
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carrie159
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by carrie159 » Fri May 25, 2018 12:43 pm
The amount was £40k .

When we spoke to them originally the amount payable was between 8k - 40k we were not expecting the full amount, I am trying to find the emails we sent and recieved, but my husband explicitly asked during phone calls in a number of occasions if we would get to keep the money, once they found out the true amount, made us get a explanation from the insurance company as to what it covers they then stated we needed to pay it over.

I do have an email telling them what we would be getting and when, and they sent a reply saying please make sure you pay the £1800 for loss of earning that you received once you get the funds to bring your account back in line. This £1800 I might add, was from a HSF payment containing £300 recouperation Grant.

I did read somewhere in terms that these things were suppose to be discussed at the point of application and advisory given over what would happen, this was not the case.
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Lisa Thomas
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by Lisa Thomas » Fri May 25, 2018 12:56 pm
Ask if they keep recordings of their phone calls and try to get copies.

Try to find the emails too.
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carrie159
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by carrie159 » Fri May 25, 2018 1:12 pm
Lisa Thomas wrote:
Ask if they keep recordings of their phone calls and try to get copies.

Try to find the emails too.


Will do, what action should we look to take of we find these?
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Lisa Thomas
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by Lisa Thomas » Fri May 25, 2018 2:33 pm
If you can prove that they are acting against what they previously told you then challenge it with them.

Worst case you might need specialist solicitors to help you fight for the funds, depending on how much it is.
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