PHILADELPHIA, PENNSYLVANIA -- In 2005 I received a notice from the IRS that Prudential Insurance had filed a 1099-R in the amount of $32,329.27 for a loan against my life insurance policy that Prudential was “writing off/paying off”. Prudential never sent me a copy of the 1099 (the IES did), so I also had to pay penalties. I ended up paying the IRS approximately $3,500 for this, $3,051 plus interest, and the California Franchise Tax Board about $1,500. I also had liens placed on my house, and my bank account.
I tried, for quite some time to get a statement of my account from Prudential with little results. My last 2 (yearly) statements were completely blank. I started getting suspicious and I called Prudential several times to get a statement, and kept getting all sorts of OTHER forms instead. After insisting, I finally got a statement from Prudential. Prudential states that I STILL OWE THEM THE MONEY (plus 5 years of interest added to it, about $2,000 per year).
In a letter from Prudential (Dec. 2009), they state that they are required to report any taxable gain. Yet as of December 31, 2004 there was NO gain (the end of tax year 2004). In their letter dated 2009 they verify that the policy was reinstated and the loan “pay off” was reversed on March 4, 2004, 9 months before the end of that tax year (just barely over one month after payments were missed), and Prudential's account statement dated March 2005 (for the previous year) also verifies that the loan “pay off” was reversed. March 4, 2004 is 9 months before the end of that tax year, yet Prudential filed a 1099 anyway.
Why did Prudential file a 1099 when they ADMIT there were NO gains for 2004? Prudential explains that the reportable tax gain is the loan repay amount minus the cost basis, then in the next paragraph they again verify that the “pay off” was REVERSED. Prudential says that they have no responsibility in the fact that I had to (wrongfully) pay $5,000 in State and Federal taxes on the gains that they (falsely) reported. Even they have verified (in writing) that this was falsely reported, and that there was NO gain.
Prudential gave an explanation of their actions by explaining the “letter” of the law that justifies their action. Of course the objective of that law, and their ethics were never mentioned, nor was there any apology for costing me $5,000. I had liens placed on my house, my bank account, and the IRS threatened to attach my Social
Security checks, all because of a fraudulent 1099 from Prudential.
I would like to see a copy of the letter informing the IRS and me that the “pay off” was reversed. Let me guess, they are not required by law to inform anyone that they screwed up. The IRS says that my only recourse with them is to obtain a tax attorney, at my expense of course. This policy has been in effect for 46 years, yet payments 5 minutes late, and the policy goes into default, in the hopes that they can find cause to cancel the policy and pocket the money.
My mother had a life insurance policy with Prudential for over 40 years. When she died I called Prudential (I'm the beneficiary), they said that the policy had lapsed just before she died. How convenient, they pocketed about $75,000. How many people have they screwed using these practices?
Prudential was obviously not acting in “good faith”, on in my interest. There is this new thing out, it is called Ethics, look it up. Prudential's actions are illegal, unethical, and despicable. You are defrauding the IRS and me, and on top of that you are stealing from me. The people of this country are sick of business practices like yours, if you have not noticed.
DUBUQUE, IOWA -- On February 16, 2010 I requested that Prudential close out my 401k account and rollover/transfer it to my Schwab IRA. They did roll over the account, although it took them 5 days, and charged me $50 for this transfer. I then received a statement two months later showing an ending value as of 3/31/2010 of $0.00.
On September 20, 2010 I received another statement that said I still had $99.72 in my account. I called again on September 21, 2010, told the person this account should have been closed out in February (per my instructions) and requested Prudential again close out the account and rollover/transfer it to a Schwab IRA. The phone personnel assured me twice that no charges would be added on this transfer. On September 25, 2010 I receive a letter from Prudential saying they are transferring only $49.04 to my Schwab account. This is a $50.68 service charge that they said they would not add.
On September 27, 2010 I called the Prudential retirement line (877-778-2100) to complain about the additional $50 service charge. The phone personnel answered the line and originally said that there were no charges, but after several holds admitted that $99.72 was available in my 401(K) and only $49.04 was transferred to my Schwab Plan. Then the phone personnel said the charge was normal and customary - no matter that I tried to close the account out in February and had already been charged a $50 transfer fee. He said he could do nothing about it.
Unfortunately the Prudential service was inadequate and misleading. I am disappointed because they did not do what they said they would do and not charge the second service charge. An ethical business should have no games, no gimmicks, no gotchas that I have to deal with. I think the second transfer fee is unreasonable and that the original transfer fee should have covered any transfer. This is not an ethical company.
EAST SETAUKET, NEW YORK -- We chose a home to have inspected and did not do our homework by calling the town for their correct information on the house. Upon inspection we found out that the house was not built in the year stated on the listing and that it was built 28 years earlier than specified. We were also not informed that it was an estate sale and was told that the owner rented out houses, so we assumed that its being vacant was because that the renter had moved out.
The inspection came out poorly and the home would need over $100,000 worth of work which we could not afford so we declined to purchase the home. Yes, we were out $470 dollars, but we did choose to inspect the house but it was the principle of the matter that was really at stake here. The money was minimal compared to what would have happened if we said yes to the purchase.
Prudential Real Estate only backed their brokers, of course and would not even acknowledge that in business most of the time the consumer is usually right and catered to in a different manner. We were also informed that there was another bid on the house and thus this meant that we would have to bid higher to have the owner accept our bid. Prudential stated that the owner had given them the wrong information about the house when all they had to do was to call the town and verify the information such as the age of the house, the taxes and the internal square footage.
I guess it is true to say that the buyer should beware! They did not like our inspector from the start and tried to get us to use others. Also, after studying the listings for over 2 years now, I have found that most real estate listing information is not accurate and of course, at the bottom of the page, it almost states that they are not responsible for mistakes. So when you go to buy a home, make sure that you verify all information with the correct town assessor and not be fooled by any such MISTAKES, including errors in taxes, age of the home and square footage, etc.
PHILADELPHIA, PENNSYLVANIA -- In 1993 I purchased a Variable Annuity life insurance policy from Prudential Insurance Company. I specified and was "guaranteed" a policy that would be paid "in-full" in twelve years, thereby coinciding with my retirement age. After paying the premiums for 144 consecutive months by electronic transfer of funds, Prudential advised me that the policy was not "paid-in-full" and would probably take three more years. After the next three years of paying premiums, not only was the policy not paid up but Prudential raised my premiums by 60% with the terms of premiums then being indefinite.
During all this there was much communication with the company and my state insurance commission to no avail. The company chose (rather than to negotiate a settlement with me), to cloak themselves in litigious edict and deny any obligation to contractual responsibility. As it became obvious that Prudential is not reputable and paying more premiums was just whistling by the graveyard, I canceled the policy and THEY kept my 15 years of premiums. Better to lose $30,000 than possibly another thirty to fifty thousand.
I have now noticed that many people have posted similar stories and it's apparent that Prudential can fleece us with immunity and, with us having no recourse, continue to post outrageous annual earnings statements. I would recommend that anyone invested in any of Prudential's products liquidate them as soon as is rational. And anyone wishing to purchase these types of products should look elsewhere.
LAS VEGAS, NEVADA -- I'm going through some difficult times and I tried to get a hardship withdrawal. I filed and faxed all the paperwork. I called to see if it had been approved but they said it couldn't be because the landlord needed to evict me. My landlord called them and told them once they start the process they couldn't take any money from me, the guy told them just to evict me!!!! The landlord said "sir, she will be homeless." Then he said they could approve me after I'm fully evicted!!!!! So, I have to see what else I could do but I will never have my money with them to have this mentality towards their customers is unbelievable!!!!
My father purchased Prudential life insurance coverage for me back in 1991, and has been paying his premium every month since his death in February 2011. I have been attempting to take ownership of the policy to cash it out and I have been getting nowhere with this dishonest company. The Prudential representatives are saying my brother is the rightful owner of the policy despite proof to the contrary! Makes no sense at all. They have lied and delayed my rights for months now and I'm getting fed up. DO NOT PURCHASE PRUDENTIAL LIFE INSURANCE. THEY ARE UNETHICAL, YOU WILL BE GIVEN THE RUN AROUND!
NEWARK, NEW JERSEY -- I have been attempting to collect my 401k account money since I left my company in July. I have been transferred around, given false tracking numbers which the UPS mentioned were for return products such as t-shirts. I have been promised it would be delivered through the post office, UPS by ground and UPS by overnight with signature. From July 2010 through present (January 2011) they have not returned my calls and have left me in the dark. I feel as though I will never see the money I worked so hard for. Do the right thing and contact the BBB if you have experienced this! This is a scam!
NEWARK, NEW JERSEY -- In Nov of 1955 when my first daughter was born, I took out an educational policy for her, for 800 dollars to be paid when she reached 18. In June of 1957, I did the same thing for my second child, 800 dollar policy to be paid when she reached the age of 18. Then in March of 1968, I took out the same kind of policy for my son, educational policy to be paid when he reached age 18.
54 years have passed and the policies have still not been paid out. Prudential sent a man to my house each month, for the money, but my children never saw a penny of it. They collected the money, each month, but my oldest daughter is now a professor, my second daughter is a teacher/director, and my son works in WalMart Carolina. How I wish I had chosen an honest company to have my policies with. Do not make the same mistake as I, choose a reputable, honest company.
I have written the home company and they do not even bother to write back. I am now thinking of taking Prudential to court, and asking for interest on the 2400 dollars. It would be worth what I pay the lawyer to finally bring Prudential to justice. Thank you for reading.
PHILADELPHIA, PENNSYLVANIA -- DO NOT BUY PRUDENTIAL LIFE INSURANCE - that is my advice after dealing with Prudential and other companies about making claims for death benefits for the same person. I could go on in excruciating detail about how Prudential takes unconscionable steps to prevent or delay paying claims. It does so under the guise of state law, but other companies of excellent reputation operating in the same state do not act in the unacceptable manner of Prudential. IF YOU ALREADY OWN A PRUDENTIAL POLICY IT MAY BE TOO LATE TO HELP YOU.
PHILADELPHIA, PENNSYLVANIA -- Prudential Life Insurance is holding HOSTAGE proceeds from 2 life insurance policies my father paid on 50 years before he died in June 2008. They say the beneficiaries are in dispute but keep delaying the one action that can settle this dispute - filing an Interpleader Action. For 8 weeks now this corporation (The Rock) keeps saying they intend to file this action which will allow the Courts to decide my father's intent as to who is supposed to get the money, but in California this action requires the Insurance Company to deposit the death benefit money with the court.
In essence the money will be paid out and this is something no insurance company wants to do. They want all the premium money they can get but don't really want to pay any money out. The longer Prudential practices this BAD FAITH tactic to delay paying out on these policies, the greater the chances are that my family will lose a home that has been in our family for 50 years.
The company has in their possession a copy of both my father's Trust and Living Will plus a hand written note all expressing his final wishes as to who the undisputed beneficiary truly should be, yet they continue to delay taking any action to resolve this issue so the money can be paid to the family. This is an outrage and another fine example of corporate greed. The Rock has no integrity whatsoever and no heart either. This company should be ashamed of their very transparent efforts to retain money they have no right to keep from those my father paid (50 years) to provide for after his death.
We have complained to the California State Insurance Commissioner and I have even sent a FAX to the CEO John R. Strangfeld Jr., with no results thus far.