Shortfall in Endowment that was 'on track'.

Patsy99

Hi
Just thought I would let you all know that the letters you receive from your endownment providers are not worth the paper that they are written on. We have just received a letter from the Prudential with the 'good news' that our morgage endownment policy is paying less than the target amout by £900.00!!!! :mad::mad::mad: which is great because they are 'consistently performing better than our competition'.

I phoned them, because all of the letters we had received up until now (the latest being Nov 08) advised that we were classified as 'GREEN' and in bold writing stated that 'your policy is currently on track to repay the target amount'. I was advised that we are just victims of the current market conditions.

I then phoned the FOS who stated that their letters are only projections and are no way guarantees of final payouts. No possibility of redress.

So now you know - even if you get a letter with big bold letters telling you things are ok - highlighting the amount, this is NOT the case.
:money:

Sorry to be depressing, but if like me you were planning a holiday and have to let down children, then its best you know before you make promises you cannot keep.

opinions4u

our morgage endownment policy is paying less than the target amout by £900.00!!!!

There will be people reading this who have suffered a shortfall in the tens of thousands of pounds.

Patsy, did you genuinely think green meant guaranteed?

Projections are precisely what they say they are - an example of where you will end up IF certain numbers are achieved. They are not a guarantee of anything.

Current market conditions are exceptional.

While there is no possibility of redress for the policy not performing, if you can show that you were in any way mis-sold the plan you may be able to get compensation. But it would only put you back in the position you would have been in with a repayment mortgage.

So now you know - even if you get a letter with big bold letters telling you things are ok - highlighting the amount, this is NOT the case.

Yes it is. At that point in time. Things were ok then. They're not now.

Sorry about the holiday. But you were the one who made the promises. Not Prudential.

Cannon_Fodder

Although sent Nov 08, the previous letter would apply to a bit earlier in 08, their half-year position, perhaps. Your latest letter is probably base on 3 month old data, too.

Since Autumn 08 the markets have been hammered. Noticed the recession? Things like that affect markets, and therefore endowment performance.

If your endowment finishes shortly, that will be an unfortunate piece of timing, to take that hit.

The good news is that as we (hopefully) come out of recession, things will improve. The markets have recently been performing better - maybe this is a false dawn, but it could be sustained, no-one knows.

Then your endowment will reflect this. Your next letter may well be back to green.

You just need a bit of luck with timing. Good luck.

TighterThanTwoCoatsOfPain

Not sure if you have been asleep for the last 6 months, but the stock market / economy hasnt been too hot!

You dont say what the payout was, but assuming its for a reasonable mortgage, £900 is neither here nor there - less than 1 months payment for many.

It certainly isnt the Prus fault, especially if they have out performed the market, maybe you should be greatful its 'only' £900?

btw, i'm not associated with them at all!

dunstonh

So now you know - even if you get a letter with big bold letters telling you things are ok - highlighting the amount, this is NOT the case.

Sounds more like you read the bits you wanted to read and ignored the risk warnings. There are plenty of warnings on the projections that state they are just examples and not guaranteed.

its best you know before you make promises you cannot keep.

There was no promise. Just examples.

I was advised that we are just victims of the current market conditions.

If that is news to you now then where have you been for the last year or so?

Patsy99

Thanks for the various replies. I have not been living in a cave recently and have also lost thousands from the Halifax fiasco. I was really annoyed and didn't understand fully that the endowment could have such a shortfall of 22% of the final bonus, given that it is maturing just now. Maybe some of you have lots of money but to someone like me £900.00 is a lot to lose out on.

dunstonh

have also lost thousands from the Halifax fiasco.

What fiasco? How have you lost thousands when no depositors or borrowers have lost anything?