Endowment Compensation Questions

dunstonh

Although I can sympathise with FP with their "request" that the policy is surrendered. If you complain the policy should never have been sold and that complaint is upheld, then the policy really ought to be voided.

EdInvestor

andy768 wrote:

.. is it possible to receive the compensation and keep the endowment mortgage running? Is it a complicated situation involving the social security.

Do you mean that if you were forced to turn the policy into cash, then benefits would be affected?

If so, suggest you explain this to FP, as clearly you would be disadvantaged by surrendering.

andy768

EdInvestor wrote:

Do you mean that if you were forced to turn the policy into cash, then benefits would be affected?

If so, suggest you explain this to FP, as clearly you would be disadvantaged by surrendering.

I'm not 100% sure about the situation, but its my understanding that the social pay the mortgage and my mum pays interest and the separate endowment policies monthly payments. For this reason, she does want to cancel this arrangement. She has a £20,000 and a £5,000 with Scottish Provident and a £5,000 with Friends Provident.

vinno65

dunstonh wrote:

Although I can sympathise with FP with their "request" that the policy is surrendered. If you complain the policy should never have been sold and that complaint is upheld, then the policy really ought to be voided.

Hi Dunstonh
I fully agree with you but unfortunately in this case it seems that the circumstances have changed. Also as you know surrender values are quite arbitrary different firms applying different charges as they see fit so why not see what its worth on the open market? From what I've heard about FP policies though the words "touch" and "bargepole" spring to mind!!
regards Vinno

EdInvestor

andy768 wrote:

I'm not 100% sure about the situation, but its my understanding that the social pay the mortgage and my mum pays interest and the separate endowment policies monthly payments. For this reason, she does want to cancel this arrangement. She has a £20,000 and a £5,000 with Scottish Provident and a £5,000 with Friends Provident.

Might be a good idea if she consults the CAB on how the situation might change if the endowment was surrendered ( you never know it might be improved ) and also gets them to help her with a letter explaining the position to FP if not.