Sharesave Scheme

[Geekee]

I have been paying into a sharesave scheme through my employer for three years. This scheme matured in June this year and I was sent an letter and a form in May to complete to state what I would like to do with the money I had saved.

The options were 1) to buy the shares in the company at a predefined rate or 2) close the account and have all monies repaid to me (including a bonus).

The day after I received this letter, I sent it back stating that I would like to buy all shares.

I took a copy of this letter and sent it back in the business reply envelope (as requested).

I have now received a cheque for the whole amount I have saved, so they have not purchased my shares, but in fact closed my account.

Where do I stand legally with this, will they go back, reopen my account and let me have my shares or will they just deny ever getting my instruction form?

The only problem with this is that the shares have steadily increased over the past three years and are still climbing so I have lost a lot of money.

Oh - AND I AM VERY ANGRY.

[bednobs]

im sorry i dont know the answer but how can you have lost money if the shares have risen?
isnt it better to contact the company about it?

[Geekee]

I wanted to buy shares at the option price of 195 with my three years savings.

Lloyds are claiming they have not received that instruction and repaid the money that had been saved over the three years.

The share price is now over 400 so theoretically have sold shares at 195 instead of 400.

Sorry, finding it quite hard to explain!

[bednobs]

dont worry, im finding it had to understand - have you actually lost any money (ie did you get back less than you put in) or is it theoretical money youve lost (ie the shares would have been worth more to sell)?

[4GS]

Your company, or whoever sent you the letter should have kept a copy. Ask your empoyer if you can have the shares at the price they were when the scheme matured, it will be beneficial for the firm to have employee's as shareholders, it shows commitment

[Pineapple66]

Did they state that no reply within a certain time indicated you wanted the money?

[Geekee]

The instrction form said that no response was received in 6 months that would mean they would close the account and all monies returned.

I have paid in �250 per month for 3 years, so have paid in �9000. I had the chance to buy shares at 1.95 and sell them straight away, I would get back �18,500 as the price has increased, but instead of getting the chance to do that, they have just refunded my money.

The idea of Sharesave is that it's your choice if you want to buy the shares or not, so if the price had fallen below the option price of 1.95, then you can request that you close the account and get your money back and 'lose nothing'

[Hammer]

You probably don't want to hear this, but these schemes are subject to strict Inland Revenue Rules and there is not much scope for flexibility.

If they didn't receive your instruction and you didn't follow it up within the 6 month limit, I fear that the opportunity has now passed.

Legally, you don't have much comeback. You can't prove that they received your instruction and you did have 6 months in which to ensure that everything was in order. Sorry.