FSCS endowment settlement error & wanting cash back!

mazzabe

I am wondering if anyone else has had this experience and where I stand with repaying the money.

We made a claim to the FSCS for endowment miselling and were awarded a settlement last November. We received 2 cheques and 2 letters both dated the same, each for £2,500. We wondered if the 2nd was an error and contacted FSCS asking this, but could get no response from anyone. We also emailed them but again no response. We persisted on the phone and finally got an answer: we could cash both cheques, it was correct and we were OK.

We banked them and paid the sum off our mortgage so that it was almost straight for the endowment part, along with other monies we had saved and paid off as well.

Last Friday - 6 months later - we received a letter in response to last November's email saying "so sorry, but they've made a mistake and we were only due one of the cheques and could they have their money back please!"

We went out of our way to ensure that this was not an error and were assured by them that it was not! We have paid the money off of our mortgage. We have organised ourselves mortgage wise as a result of this settlement.

I am wondering if anyone else has had this experience and where we stand with having to repay the money when it is so blatantly their ineptitude that has caused it!

dunstonh

I am wondering if anyone else has had this experience and where we stand with having to repay the money when it is so blatantly their ineptitude that has caused it!

It is not your money. So, they are entitled to ask for it back. Errors happen but it doesnt automatically mean you get to keep the money.

However, you can arrange a payment schedule to pay it back. Typically over a period of 12-18 months.