Final amount received less than agreed.

Dave_Taylor

We took out a mortgage endowment in 1996 for £28K over 15 years. We found out this year it was under-performing (they had been writing to the wrong address.) They agreed we'd been mis-sold the policy as they carried out a financial review at the time and concluded we were cautious investors who would not invest in the stock market. So we were offered compensation. They concluded that if we had taken out a repayment mortgage we would have paid off about £19K. They gave us a surrender value on the endowment of £14,500 so paid us compensation of £4,500. Then there was a delay getting the endowment policy cashed in because the solicitor hadn't assigned it to the new mortgage when we moved house. Anyway, after 3 weeks the clearance came through and the endowment was cashed in, and we received a payment of £13,500, some £1000 short of what our compensation figure was based upon. We were told "tough" it went down in value and there is nothing we can do. Do we accept this?

Would a £14,500 endowment have lost £1000 in the past few weeks, and now be worth £200 less than we have actually paid into it over the last 12 years?
Should the lender have sorted out the compensation once the endowment was actually cashed in and the actual value known?
Could we claim the £1000 back against the solicitor who dealt with this at the time and forgot to re assign the endowment from the Northern Rock policy to the C&G policy.

We are £1000 out of pocket from the settlement figure we'd agreed of £19K and I feel ripped off yet again.

Any thoughts?