Your mum should put in writing her dissatisfaction with the ERC and advise Aviva that she is thinking about asking the FOS to review the matter. If your mum went to the FOS, it would cost Aviva a £500 case fee and they might be anxious about the complaint being upheld. If they have a complaint upheld, it could open the floodgates to other people making similar complaints. The FOS do publicise some of the cases they have reviewed, so financial companies are often willing to look into complaints and make some compromises if they feel it is warranted.

That is the way I would proceed, but if Aviva don't compromise, your mum may have to wait many months for the FOS to review her complaint.

My mother is in the process of down sizing to pay off an equity release her and my late father took out in early 2001 with Norwich Union/Aviva. I've just been informed that the ERC for this will be £14,000! This is over 50% of the original £26,000 loan and seems highly unethical. I understand that Aviva has since 2004 capped the ERC for new customers to 25% of the original loan. Can you advise on whether we have a case with Aviva in reducing this hefty charge and if so how should I proceed?

Thanks