Policy Misselling

jfisher20

Having read some of the other postings can I explain my situation and perhaps get some advice on my next step.
In 1980 I decided to buy a house, and I can tell you that at that time and especially being single, getting a mortgage was like going for a job interview.
At one of the houses I viewed the vendors told me that their son could arrange a mortgage if needed.
Realising this could ease a difficult job I gave them my phone number.
That evening I received a call from their son, or at least he had the same surname as the vendors, who turned out to be a Abbey National branch manager.
He confirmed over the phone that my earnings were OK for the mortgage
and as his office was in a different part of London he arranged for me to pick up the application forms from my local office which after filling in were posted to his office.I had told him that I wanted an endownment mortgage.
The application was processed as normal and I got the mortgage.
During the process my workmate mentioned to me that he was thinking of leaving home and I said if he wanted he could move to my house when I got possesion.
After some discussion I agreed as a safeguard for him that I would include him on the mortgage and the building society manager agreed.
To protect myself I told him that I would take out a endownment in my own name to cover the full amount of the mortgage.
He decided to do the same.
WE also had our solicitor draw up an agreement as to what would happen to the property if he decided to leave at anytime.At our place of work the Provident Mutual company operated via workplace reps.
We both asked our rep to get us quotations for policies to cover as stated.
THis was duly done but when these quotations were offered to the building society manager he stated he wanted us to see someone else.
We therefore went to see this man and it was explained to him what he required ie individuial policies to cover the full amount of mortgae in case one of us left.
He offered us two policies each which to be quite honest we did not understand but on being asked he quoted sums that should be a minimum payout after the 25 years.
We accepted these policies because of his quotes and also because we felt under pressure because of the building society manager rejecting our own quotations.
All went well until November 2005 when Standard Life contacted us both as the policies matured the following month and my God what a shock.
One of the policies we each were sold finished at maturity and did not pay out anything.
A complaint was made to Abbey National who stated that as the other policies matured with a joint total of more than the mortgage the complaint was rejected.
However the individual sums are £9000 short of the figures quoted to us.
I have'nt gone to next stage yet due to christmas and the new year.
However I would be grateful for any advice or opinion and hope I have'nt been long winded but have tried to cover all points
Thanks

dunstonh

Can you clarify the following:

1 - The policies matured paying out more than required?
2 - Did the full sum assured equal the required amount or was it the lower guaranteed sum assured that didn't?
3 - What part were you complaining about?

jfisher20

I think it might help you better if I tell you what the policies sold to us were.
I was sold a 25 year endownment Assurance with profits and minimum death benefit
with a sum assured of £3600 with £9000 at death.
The second policy was a 25 years convertible term assurance for £9000.
THe other chap was sold the same policies but his convertable term assurance was for £11250
The mortgage was for £18000.
The two £3600 policies have both matured at just over £12000 mark.
THe complaint is that we were not sold what we had asked for but because we were quite happy with the quoted sums of a minimum of £21000 for me after 25 years and £23000 for the other chap because he was younger, we did not do any checks so of course until last Nov we did not realise exactly what we had been sold.
We would have preferred to have had the policies with Provident Mutual who had quoted for one policy each, because we were already customers.
THe Provident Mutual workplace rep had told us that building societies want you to go companies who then pay them commision.
Hope this helps and thanks for replying.

EdInvestor

Are you saying that you thought the term assurance policies were also endowments and thus you would get two payouts each of c.11-12k rather than one? Despite the fact that one payment each covered the mortgage?

jfisher20

Thanks.
Remember we had requested an endownment policy each for the full amount of the mortgage, the idea being that the full amount of the mortgage would be covered in the case of one of us leaving.
We had got quotations for these from Provident Mutual but Abbey National wanted us to go to their own man. Standard Life say the policies were sold by Abbey National.
Neither of us understood the details of the policies but were happy when the man quoted the figures to be realised after 25 years.
The idea was that the full amount of the mortgage would be covered in the case of one of us leaving.
In this case there would now be £12000 to pay off £18000.
I believe I realise what you are getting at but my main complaint is that I was not sold what I asked for and was misled about the final outcome.