WILL writing and probate firms are being investigated by the regulator.
It comes amid reports of pressure selling to vulnerable customers and fears that some have been charged thousands for shoddy advice.
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Unregulated companies rake in billions of pounds a year by offering basic legal services, such as drawing up wills, applying for power of attorney and arranging quick divorces.
Consumer expert Martyn James says: “These services don’t have to be carried out by registered solicitors, leaving customers completely exposed if anything should go wrong — for example, if they are given terrible advice or if the company goes bust.”
Here, we lay bare all the traps to avoid, and explain how to find advice you can trust . . .
WILLS AND PROBATE PROBED
Investigators at the Competition and Markets Authority are looking into reports of pressure selling to vulnerable people, and whether some firms are misleading customers by advertising a very low initial fee then charging far higher sums further down the line.
The watchdog is also examining if firms are using other unfair tactics, such as tying customers who write a will into using the same firm as an executor of their estate when they die — and then demanding a further fee.
‘WILL ORDEAL LEFT ME £5,000 IN DEBT’
Well-known regulated firms, such as Co-operative Legal Services, charge around £150 for a will and just over £350 for a lasting power of attorney, giving a trusted friend or family member permission to act on your behalf if you cannot manage your affairs due to illness or deteriorating mental health.
You can even get a free will from a regulated company through charity schemes.
But teaching assistant Janet Walker* has been left £5,000 in debt after paying a company to sort out her will and power of attorney documents.
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The 67-year-old teaching assistant from Leigh, Gtr Manchester, wanted to save her own kids the trauma and rows that she and her siblings faced when handling her late mother’s affairs.
Janet used Centurion Estate Planning, based in Stirling, Scotland, which has no connection with Chichester-based Centurion Estate Planning Group or firms with similar names.
Janet had seen an advert on Facebook about the company and was reassured she was in safe hands after reading five-star reviews online.
She paid £4,780 for two Lasting Power of Attorney documents — for her health wishes and her finances — and for drawing up a trust for her children.
For this sum, which is ten times what Co-op charge for the same service, the will was supposedly “thrown in for free”.
But Janet did not have the money to pay for the legal work upfront so she put £1,500 on a Santander credit card and Centurion arranged a loan for the remaining £3,180, plus £445 in interest through Payment Assist, a firm in Melton Mowbray, Leics.
“It seemed so professional at first, then I heard nothing,” Janet said.
Her calls went unanswered until six months later she got an email asking for the deeds to her house, so Centurion could set up the trust.
She said: “As if I’d send that. I felt so messed about that I cancelled and asked for a refund.
“Then the company told me it had gone into administration and had lost my money. I felt sick.”
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WIN FOR SUN MONEY
After Sun Money took up Janet’s case, Payment Assist confirmed to her that it has written off her loan and will refund the money she has paid, totalling more than £3,500.
Under the Consumer Credit Act, you can appeal to your lender by making a “Section 75” claim if you have borrowed money to pay for an item or a service which is not provided.
Sun Money also helped Janet push for her remaining money from Santander using the same rule.
A Santander spokesman said: “We have refunded the full £1,500 paid by credit card following the Section 75 claim made last week.”
Payment Assist says: “As a regulated lender we take our responsibilities seriously in treating customers fairly — and we no longer deal with Centurion.”
A statement from Centurion Estate Planning said the company had “ceased to trade” and had appointed Greenfield Recovery as administrators. Affected customers should receive a letter this week.
FIND A TRUSTWORTHY FIRM
Any firm can write a will, but using a regulated service gives you much greater protection.
Solicitors are bound by strict rules and cannot charge upfront. You only pay for the advice after everything is in place.
If you are not happy with the service, first complain to the solicitor’s firm directly.
If you are still not happy you can then take your case to the legal ombudsman for free (0300 555 0333, legalombudsman.org.uk).
By paying at least £100 of the costs on a credit card, you will also have the right to seek a refund from your lender, should you run into problems like Janet.
It’s Free Wills Month in November — so register for an appointment from next month.
You can also get a free will drawn up from a regulated provider by contacting a charity such as Macmillan, Oxfam or any of those listed on nationalfreewills.net.
Many have schemes in place in the hope you will make a donation — but there is no set amount.
Nicholas Hall, a partner at Gunnercooke Solicitors in central London says: “Check the Law Society’s website to find a reputable company and agree the fee at the outset before you commit to going ahead.
“Tell your loved ones you’ve made a will and let them know where it’s kept.”
*Janet’s name has been changed.
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Pension providers letting down savers on lump sums
ALMOST 100,000 pensioners with less than £10,000 saved could be limited to receiving tiny regular payments instead of cashing in their plans, a Sun Money investigation has found.
Annuities give pensioners a fixed regular income for the rest of their life.
Government rules say savers with plans worth less than £10,000 should be allowed to take their money as a lump sum if they want to.
A big, one-off sum could pay for meaningful purchases such as a holiday, car or home improvements.
But although HMRC rules allows it, providers aren’t required to offer the option – and Sun Money has found hardly any that do.
Data from the FCA shows that around 96,000 pensioners bought an annuity worth less than £10,000 in the last decade.
Aviva, Canada Life, Scottish Widows and Legal and General all told the Sun they don’t allow savers to cash in plans in any circumstances.
ReAssure used to allow it in some cases, but recently removed the option.
In 2017 Phoenix Life wrote to 20,000 customers with annuities paying less than £300 a year, offering them the option to cash them in.
But the Sun understands it now only allows this in very specific circumstances – for example, where a customer is financially vulnerable – and Standard Life rarely allows it.
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Retired print worker Laurence Gott, 76, decided to cash in his annuity with ReAssure as he was receiving just £189 a year after tax – or around £47 every three months.
He wanted to put a larger sum towards a cruise for him and wife Anna – but ReAssure told him it had recently removed this option.
Laurence, from Haverhill, Suffolk, said: “ReAssure must have to pay a disproportionate amount on administration costs, so I thought it would benefit both of us to get a one-off payment.”
Tom Selby, head of retirement policy at broker AJ Bell, said: “You can sympathise with the frustrations of anyone who has an annuity paying an income of just a few pounds a week who may feel they can get more use out of a larger one-off payment.”
A spokesperson for Phoenix told the Sun: “Small pot encashment can be a complex decision for people that requires comprehensive information to be made available, along with all the necessary support.
“Very careful consideration also needs to be given to all regulatory aspects.”
They added that providers had to pay particular attention to new consumer duty rules requiring firms to ensure that all products meet customers’ needs and offer fair value.
