The Tonight program can be viewed on catch-up here. It was a useful critique of equity release, although some of the wider issues were skirted, such as why people would need the product in the first place, given that their pension or health insurance should have been adequate.
The story behind the mystery shop (see 14:00 onwards) is more complex.
As the programme states, I conducted the mystery shop in March this year, and was offered a rate somewhat higher than the one offered in the wider market, amounting to a considerable difference in present value. The programme did not mention that the lower rate was from L&G, who are one of the five providers on their “panel”.
The reason why the service did not offer a cheaper product from their own panel was never made clear in the extensive correspondence that followed. Age Co claimed (as stated in the programme at 16:40) that the recommendation is based on an analysis of the customer’s “particular needs”, but never made clear why I would “need” to pay £57k more than necessary. “Based on customer needs” is a useful get out of jail. Note that the same excuse was made in the story (4:00 onwards) of the £187k loan made in 1997, and which is now valued close to an eye-watering £2m.
Just Group also said that a lower rate would have been available a few days after the mystery shop exercise, but omitted to say that I had my final discussion with the adviser nearly a week after the sales staff had been notified of the new rate. I pressed Age UK on this point a few times in correspondence but they never explained the gap in the chronology.
I would have published something on this site back in May when the Telegraph published its piece, but a fierce letter from Age UK solicitors (sent to both me personally, and the Telegraph) put an end to that. I lodged complaints with both the Charity Commission and the Financial Conduct Authority, but no surprise to hear nothing from either. The whole affair reflects the pitiful state of financial regulation and the huge power wielded by vested interests through their lawyers.