Act now on mis-sold endowments: new article

dunstonh

Challenger71 wrote: »

Hi, we took out an endowment mortgage in 1994 and were told it would pay off the mortgage in full and possibly have money left. Then we started to get letters saying there was going to be a shortfall and and we had to make top up payments, when we then had more letters saying we need to pay even more we cashed it in and changed to a repayment mortgage. I believe the endowment was with legal and general the mortgage was with hsbc. I assume I am out of time.

You have 3 years from first being notified of a high risk of shortfall or 6 years from commencement of the policy. Whichever is the longer. 1994 sale means 2000 was the 6 year rule and 3 years from shortfall would likely be mid to late 2000s.

Most endowments are timebarred. you can ask them if you want (assuming they sold it to you and it was not a third party). However, it does appear they could timebar you if they wanted to.

RobJ6

Hi

We have received an offer of compensation for mis-sold endowment policy which we accepted but they have asked for a notice of reassignment from the mortgage lender to confirm they have no interest in the policy before they will process the payment but the mortgage/policy was was around 25 years ago, does anyone know if they are correct in requesting this document to release the compensation?

dunstonh

does anyone know if they are correct in requesting this document to release the compensation?

Yes they are. Otherwise, the proceeds will be paid to the lender that it is assigned to.

Pattielabelle

Can anyone advise on this please?

We took out a Halifax Mortgage and were sold a Legal & General endowment policy at the same time in 1986. The mortgage term was 25 years. We were assured that the endowment would more than pay off any outstanding money and that in addition to the guaranteed sum of £15,000 there would be a large lump sum at the end of the term. In reality this did not happen, and the guaranteed sum failed to reach the £15,000 mark.

It was sold to us in a matter of fact way of us needing to take out one with the other. We do not recall risk being discussed and there was no mention that the endowment would not meet the target amount. In fact quite the opposite in that there would be plenty left over. No discussion was had concerning any fees or charges on the policy.

We still have the Mortgage reference number and the Endowment policy number, but no paperwork. I did contact HBOS in 2006 (I still had the letter on my memory stick) but they rejected the claim.

So, is it likely we would have a claim or not, and do I approach HBOS or Legal & General?

Bermonia

If your complaint was rejected in 2006 then you had up to six months to take the matter to the FOS - here we are some 13 years on and I would say that you are perhaps more than a little bit late to the party.

dunstonh

It was sold to us in a matter of fact way of us needing to take out one with the other.

You would expect that to be the case

We do not recall risk being discussed and there was no mention that the endowment would not meet the target amount.

In 1986, no endowment had ever failed to hit target and most were paying back 4-10 times the target amount. However, 1986 is 33 years ago. So, its no wonder your recollection is not sold.

No discussion was had concerning any fees or charges on the policy.

No requirement to in 1986.

So, is it likely we would have a claim or not, and do I approach HBOS or Legal & General?

none whatsoever.

1 - you have already complained and were rejected. You cant keep asking again. You get one bit of the cherry.