Standard Life Endowment

liquiband

We have an Endowment which is due to mature in September 2009. Because it was underperforming, we paid off our mortgage with some inherited money 5 years ago. We submitted a claim for mis-selling and recived a reply to say that the company upheld all our claims but we would not receive any compensation. This was because we had already paid off our mortgage and had therefore not suffered any financial loss. Does anyone know if this is correct? Also, we were told that we would only have 6 months to appeal. Is this also correct ?

dunstonh

If you repay the mortgage or stop using the endowment towards the mortgage then the redress calculation is done to that point, not now. It sounds like they did the calculation to that point and found you were not financially worse off and therefore you are not entitled to any redress.

liquiband

Thanks - as I thought

Gorgeous_George

Yes, that's how it works but it is absolutely barking.

It's wrong, it's unfair and it stinks.

GG

dunstonh

Gorgeous_George wrote: »

Yes, that's how it works but it is absolutely barking.

It's wrong, it's unfair and it stinks.

GG

It does work both ways though. Many people have been paid out far more because they stopped using it at the right time as well. Indeed, the actual redress calculation is quite flawed in many cases as you can have endowments which are on track for a surplus still result in redress just because they have a high surrender penalty and its the surrender value used and not the current value.