Compensation offered by BS Endowment

ians_3

Hi,
I have been offered compensation for my Endowment policy and the BS has upheld my complaint. I took the policy out in 1994 at 64.68 per month. In Nov.2000 I changed my mortgage to repayment for my own reasons. In 2004 I recieved my 'Red letter Warning' potential shortfall letter.

The compensation I have been offered is only calculated to Nov.2000 this doesn't seem fair as I was intending on using the maturity value of the endowment in 2019 to pay off the reminder of my Repayment mortgage early.(Repayment mortgage due to be repaid in 2025).

Question is: This is the Full and final offer from the BS, should I go to the Financial Ombudsman and argue my case for compensation to-date or at least to when i received the Red Letter Notice? Or should I cut and run with my measley £1500 compensation?

Any help would be most appreciated,
Thanks.

EdInvestor

This is the way they calculate it, so I would take the money as it won't be improved - and reduce the mortgage with it. There's nothing to stop you from using the matured endowment proceeds to pay off the repayment mortgage early.

dunstonh

Question is: This is the Full and final offer from the BS, should I go to the Financial Ombudsman and argue my case for compensation to-date or at least to when i received the Red Letter Notice? Or should I cut and run with my measley £1500 compensation?

You wont get anywhere. The calculation offered is quite fair what you have done.

You can still do what you intended to do and assuming its unit linked, your timing could still easily result in an over target endowment payout at the end. Its not all bad.