How do I go about surrendering endowment

funkyfifer

Hi I am hoping somebody will help me here.
This is a bit on the long side and my 1st post, I just want to ensure I have included all the info so I apologise in advance!
My question is this: how do I go about surrendering an old endowment policy that I have? (Preferably without paying a financial advisor £100 - 150 to do it)
Basically I have just found out that I have an outstanding endowment policy worth £5000, for a mortgage that I gave up 6 years ago and have absolutely no need for, especially considering it still has 9 years to run!
Trying to keep a long story short, in 1993 at age 22, with the help of an independent financial adviser at the estate agents, I took out an interest only mortgage (Bank of Scotland) and a separate endowment policy from Eagle Star (now Zurich).
After around 9 years of living there I got myself in severe financial hardship and moved back to my mums then eventually got a council house, as I could not afford the mortgage repayments (or the endowments, and it was a low start policy & the monthly payments more than doubled after the 1st few years).
I was advised by the local trading standards debt help team at the time to simply post the keys to the flat to the bank with a letter and wait until I heard from them before going any further, I did the same with my car, which I had on H.P.
I had a visit from someone at the bank after I handed the keys back and I explained my situation to him regarding the payment of the mortgage and he advised me to get a lawyer as the bank would probably take me to court.
However, to my surprise around a year later I received a cheque from the Bank of Scotland for £900 as they had sold my flat for more than I owed them and this was the outstanding amount, at this point, as I heard nothing more from the bank, I assumed they had cashed my endowment policy in also as the debt help woman said they would.
However, a few weeks ago I received a letter from Zurich (formerly Eagle Star) asking me to confirm my identity regarding a policy so I sent them the information they requested and yesterday I received a statement telling me I still have this policy, obviously there is a massive shortfall as I have never made a payment for 6 years.
I telephoned them to explain this and they said I should get a financial adviser, but I am a single parent and do not have the money to pay for one so can anybody tell me if I can do this by myself, without the need for paying a financial adviser?
I cannot believe that after 6 years that nobody thought to inform me of my policy, but now that I know, I would love to claim the money as it is much needed now!
Any form of help is much appreciated,

dunstonh

You dont need an adviser to surrender the plan. Zurich are probably telling you that you need an adviser if you are asking questions that fall under an advice remit. You just ask them for a surrender form.

I cannot believe that after 6 years that nobody thought to inform me of my policy

They send out statements annually to the address they hold.

maninthestreet

"I was advised by the local trading standards debt help team at the time to simply post the keys to the flat to the bank with a letter and wait until I heard from them before going any further"

I wasn't aware Trading Standards have ever provided debt advice - and the 'advice' they gave you was monumentally bad.

dunstonh

maninthestreet wrote: »

"I was advised by the local trading standards debt help team at the time to simply post the keys to the flat to the bank with a letter and wait until I heard from them before going any further"

I wasn't aware Tradeing Standards have ever provided debt advice - and the 'advice' they gave you was monumentally bad.

I chose to ignore that bit on the assumption funkyfifer meant CAB and not trading standards. However, you are right, whoever it was that gave that info didnt give good "advice". Its alsmost at the level of "friend down the pub" advice..

bkca1230

we recently surrendered our endowment and from 1st phone call to receiving money it was about 2-3 weeks.yes you have to fill out forms but done it all ourselves and now £7300 in our bank towards our new extension.

ylesia

Hi there, since you haven't paid any premiums then the policy will be lapsed - probably made paid up dependant on your terms and conditions. You don't need a financial advisor, just ask for an up to date surrender value and also ask what the other policy options are if you don't surrender (if you are interested).

funkyfifer

dunstonh wrote: »

I chose to ignore that bit on the assumption funkyfifer meant CAB and not trading standards. However, you are right, whoever it was that gave that info didnt give good "advice". Its alsmost at the level of "friend down the pub" advice..

I did not mean The CAB. when I said Trading Standards, that's whats I meant, I dont know if it's different in Scotland but my local council has a Debt Management Team and this is the link:
tradingstandards.gov.uk/fife/money.htm

I cannot comment on the standard of the advice, but by following their advice i escaped bankrupcy and having my house reposessed.
Also, when I said that I was amazed that nobody had told me I had this policy, well I know now that my yearly statements have been going to my old address as nobody had informed them of the change. When I said this I meant that I was surprised that an endowment policy would just sit there unpaid and nobody thought to try to contact me sooner, the bank has my address and I have been on the voters roll for 5 years at this address!

funkyfifer

maninthestreet wrote: »

"I was advised by the local trading standards debt help team at the time to simply post the keys to the flat to the bank with a letter and wait until I heard from them before going any further"

I wasn't aware Trading Standards have ever provided debt advice - and the 'advice' they gave you was monumentally bad.

well you learn something new everyday dontcha!!!

maninthestreet

funkyfifer wrote: »

I did not mean The CAB. when I said Trading Standards, that's whats I meant, I dont know if it's different in Scotland but my local council has a Debt Management Team and this is the link:
tradingstandards.gov.uk/fife/money.htm

I cannot comment on the standard of the advice, but by following their advice i escaped bankrupcy and having my house reposessed.
Also, when I said that I was amazed that nobody had told me I had this policy, well I know now that my yearly statements have been going to my old address as nobody had informed them of the change. When I said this I meant that I was surprised that an endowment policy would just sit there unpaid and nobody thought to try to contact me sooner, the bank has my address and I have been on the voters roll for 5 years at this address!

You handed the keys of the flat back to the bank - so who owns the the flat now?

dunstonh

I did not mean The CAB. when I said Trading Standards, that's whats I meant, I dont know if it's different in Scotland but my local council has a Debt Management Team and this is the link:
tradingstandards.gov.uk/fife/money.htm

#

Like funkyfifer, thats a new one for me. It has to be a Scottish thing as the English ones dont do it.

funkyfifer

maninthestreet wrote: »

You handed the keys of the flat back to the bank - so who owns the the flat now?

As I stated in the original question, I handed back the keys to the flat, then I got a cheque for £900 as the bank had sold my flat and the £900 was the outstanding balance so I am assuming they sold the flat for more than I was owe to them. I also assumed (since nobody informed me, or Eagle Star otherwise) that the bank had cashed in my endowment policy, hence my surprise at nobody telling me I still had the endowment policy. I thought that since the bank had my new address that they would inform Eagle Star of the circumstances, apparently not and I now know that Eagle Star/Zurich have been posting yearly statements to my old address!
Obviously the new owner never bothered to do anything about it!
I dont know if this is right or wrong, all I wanted to know was how to go about surrendering an endowment policy that had lapsed 6 years ago!
jeez!