Endowment - Have we been missold ??

sooty&sweep

Hi

We have an endowment for part of our mortgage. Initially the endowment was for £25K.
We then extended the endowment to £30 so an additional £5k. We were sold this on the basis of a savings product.
I can still remember the advisor going on about getting a good return and how he'd got one for his daughter etc etc.
We have just received a green letter from Prudential however it only refers to the £25k. They believe that the endowment will cover the £25k but the projections indicate that we won't make the £30k.

I feel that we have been missold the £5k and Prudential appear to treat the additional money they are taking for the £5k as a top up to ensure they meet the £25k.

I have written to them a couple of times and on each occasion they acknowledge that the payments were increased.

Any advice ??

Thanks

dunstonh

We then extended the endowment to £30 so an additional £5k. We were sold this on the basis of a savings product.

Almost certainly, the extra payment would have reduced the target growth rate. It would not increase the sum assured.

Any advice ??

Nothing you have posted so far suggests a mis-sale. Indeed, had a new plan been set up, that would have increased the amount going to life assurance and meant less went into the investment element. So, increasing the target growth amount seems to be the better option. At least it was the best option the the Pru rep had available and thats all that is required with a tied agent.

opinions4u

sooty&sweep wrote: »

We have an endowment for part of our mortgage. Initially the endowment was for £25K. We then extended the endowment to £30 so an additional £5k. We were sold this on the basis of a savings product.

The key question here is "did you need an additional savings product at that time?". If the answer is in any way "yes" then why do you think you have been mis-sold?

I can still remember the advisor going on about getting a good return and how he'd got one for his daughter etc etc.

He probably did have. I used to sell endowments and believed so much in their world besating prowess I bought one too! (on an execution only basis, so I can't claim for a mis-sale!).

I feel that we have been missold the £5k

In what way? Just because an investment doesn't do as well as you hoped doesn't mean it has been mis-sold. Why do you think you were mis-sold to?