Norwich Union Mortgage promise

bigal993

Hi Guyz
My mums endownment whic was taken out in 1992, is due to mature next month, she ahs had her final statement which is way way short, is a with profits end.
BUT on the final statement it makes no mention of the Mortgage promise, im sure they made one saying they would pay some of the shortfall, A few years ago, I spoke to a guy at NU, and he said you would need to find the letter we sent making that promise, otherwise we cant prove her policy was eligible for it
Typical NU
Al :mad:

dinglebert

I would imagine that the promise was if you followed their advise and increased the payments each year to what they asked then they promised it would pay off the mortgage. At least thats what I was offered by Scottish Life and other other half with Standard Life. Needless to say we ignored their not so kind offer.

dunstonh

BUT on the final statement it makes no mention of the Mortgage promise, im sure they made one saying they would pay some of the shortfall, A few years ago, I spoke to a guy at NU, and he said you would need to find the letter we sent making that promise, otherwise we cant prove her policy was eligible for it

IIRC, its on the 2001 and 2004 statements. The information is available from NU at request (i have frequently asked and always got it). However, its not something that is well known about by many NU serviceline staff. Often you have to tell them about products rather than the other way round. Thats not a dig at those staff because they have so many products and most dont have the authorisation or licence requirements to comment beyond the basic facts on those plans.

adandem

dinglebert wrote: »

I would imagine that the promise was if you followed their advise and increased the payments each year to what they asked then they promised it would pay off the mortgage. At least thats what I was offered by Scottish Life and other other half with Standard Life. Needless to say we ignored their not so kind offer.

We have 2 NU policys which are both eligible for the promise. I wasn't asked to increase payments and our recent stetments still show the promise I think

The 'promise' was to make up some of the shortfall, not that it would completely pay off the mortgage.;)

dunstonh

The 2001 figure showed the promise value and the 2004 statement said that the 2001 figure would be the maximum (noting that I may not be 100% on the years). NU have not withdrawn this and they have said its fully funded.

bigal993

Thnaks guyz
ill get my mum to see if she can track down the statements from the years mentioned
Al

bigal993

Hi Guyz
Just an update, I called NU, and spoke to a right smarmy Guy, who said if your final statment doesnt show it, your not eligible for it, I told him im glad he had that much confidence in the company beacuse I didnt.
he asked if I wanted to make a fesh complaint, and I told him I certianly did.
And lo and behold my 72 year old Mum , Got a letter today of them saying they had checked there records and found that her policy is eligible for the promise, and they apologise, and they will send her a letter to tell her how much, it is worth. Oh and there sorry it happend.
I wouldnt trust them as far as I could throw, them, Shes 72 and didnt even rememebr getting a letter about it, it was only after reading on here about it, I thought about asking about it
otherwise she wouldnt have got it, as the ploicy is paying out this week,
How many others have been ripped of in this way ? Makes you wonder
Sorry for the rant Guyz
Her endownment ended up being £5000 short, am I right in saying the promise will make up 6% of the £5000 ?
Best regards
Al

dunstonh

Her endownment ended up being £5000 short, am I right in saying the promise will make up 6% of the £5000 ?

No. It will pay out the maturity value and the amount of the shortfall subject to a maximum figure that was published in the 2001/2004 statements.

So, if the mortgage promise value was £3000 and the shortfall was £5000 then the maturity value will be increased by £3000. However, if the mortgage promise value was £10,000 and shortfall £5000, then the maturity value would only be increased by £5000 as it cannot exceed the target amount.

bigal993

dunstonh
Can I say a Massive Thank you for your input not just on this but in a lot of threads on here, Im sure like me a lot of people who dont have a clue about all this, would be lost without your input.
My old Mum, cant find her old statements, so its a case of trusting NU, to give her the right amount,
I am disgusted with the way they have handled her case.
But at least she may get a bit of a boost to help her pay off the shortfall
Best regards
Al

bigal993

Just an update Guyz
My mum has recieved a letter today, telling her she is eligible for £1600 for the mortgage promise,
She is delighted, BUT it makes me think if I hadnt have called them to ask about this, they would not have told her, and kept the money, !!!! They have already paid out on the policy, and it was miles short of where it needed to be
Al

How many other people have had this done to them !!

dunstonh

it makes me think if I hadnt have called them to ask about this, they would not have told her, and kept the money,

The mortgage promise would have been auto added by computer and require no human intervention. The issue is that the information doesnt appear to be known by the staff on the telephone lines.

NU were getting better on servicing but over the last 6 months they have been more prone to errors. Not so much processing errors but errors of judgement by their servicing staff. That suggests lack of training or proper supervision. The two things that suffer when you cut back.