I will quote below directly from the Harvest 101 policy documents (and I am also attaching a photo copy to this email):
5.3 Stop Paying Contribution
(i) During the Initial Period, if you do not pay all the Regular Contributions in full that is due within 31 days of its due date for the relevant Initial Account, we will terminate your Policy and pay you the surrender value in the Policy Currency after deduction of the original amount of Extra Allocation made to your relevant Initial Account and any relevant charges in accordance with policy provision 7. Upon such payment all of our obligations under this Policy shall cease.
Ms Leung’s last payment was due on May 12th. I advised her to call her bank to stop the autopayment from going through. She did. It has almost been 31 days since then, and according to the Harvest 101 policy, if she does not pay within a few more days, Standard Life will close her account and send her a check for a tiny fraction of what she has paid to them so far. And then their “obligations under this Policy shall cease.”
However, a customer service representative from Standard LIfe told her they would not terminate her account for 90 days (as opposed to the 31 days mentioned in policy document). I have a voice recording of this conversation, and I am attaching it to a subsequent email.
Convoy and Standard LIfe have had more than one month to bring this to a resolution, but they have not. I suspect they have been delaying in hopes that Ms. Leung would not make her payment within 31 days so they could tell her to bugger off. They are not contractually obligated to keep her account open beyond 31 days, even though they say the will. We have no good reason to trust them, as they have demonstrated their untrustworthiness many times over.
I am writing to ensure that Ms. Leung is not screwed. I need an answer ASAP. Does she need to send $1000 to Standard Life within the next few days in order to prevent an exit fee from being applied to her account? If she does, then I will personally give her $1000 and tell her to send it to Standard Life. But at the same time, the amount of refund she will be demanding will increase from $13,000 to $14,000.
One last thing: Ms. Leung asked me to mention that when she bought the Harvest 101 Plan, she told Ms X that she DID NOT want a life insurance policy, and Ms. X replied that Harvest 101 was not life insurance. Nominally, Harvest 101 is life insurance, and therefore, Ms. X misrepresented the product, convincing Ms. Leung to buy what she specifically said she did not want. (Of course, you could argue that, in substance, Harvest 101 is not life insurance. It is a quasi-fund of funds masquerading as insurance in order to cheat foreign governments out of their tax revenues.) Ms. Leung has no recording of her and Ms. X’s conversation, as this happened in a coffee shop more than one year ago. So it’ll be Ms Leung’s word against Ms. X’s (supposing Ms. X were to deny this). But, I should mention, I have spoken with friends of Ms. Leung who have also bought ILAS products from Convoy (but not through Ms. X), and they have all reported the same misrepresentation. The person selling them ILAS said it was not insurance.
This is a massive, systematic problem concerning the way Convoy trains its employees. Even the way the employees fill out the documentation is word-for-word exactly the same (including the same grammatical errors!). To prove my point, in a subsequent email, I will attach two different ILAS forms completed by two different Convoy employees who sold ILAS to two different customers (Ms. Leung and one of her friends) at two different times.
Please reply as soon as possible. We will be calling you and/or visiting you if you don’t. I’m cc-ing this and the following emails to regulators and the media.
Identical Recommendations to Convoy Clients to Buy ILAS