redress minus surrender value on a mis sold endowment

killiekate

please help this newbie

been offered redress of £2351.78 on a mis sold endowment, but company are also taking off surrender value of £2020.13.

With final adjustment this leaves me with a total of £519.14 compensation.

I had chosen to keep my policy as i have paid off my mortgage, so i have not surrendered it. Surely they shouldn't be taking off the surrender value as i will still be paying the policy until 2018.

thanks for reading this and hope someone can help x

dunstonh

Surely they shouldn't be taking off the surrender value as i will still be paying the policy until 2018.

The idea of redress is to put you in the same position you would have been had you had a repayment mortgage.

The complaint has been upheld so if they take the surrender value and you pay that into your mortgage, you are £519.14 short of where you would have been on a repayment mortgage. So, £519.14 is the redress.

As it stands, its possible that your endowment is actually on track. If the surrender penalty is more than £519.14 then you are effectively getting free money at this time.

killiekate

thank you so much for your reply but i still think it odd that they are subtracting the surrender value on an endowment i am still paying. Because i changed my mortgage to a repayment mortgage, I was able to pay it off a few years ago, so i dont have a mortgage to pay any surrender value into.

Is that not just for people who have chosen to surrender or sell their policies?

My endowment is only on track because they have given me the option to increase my premiums :rolleyes:

sorry if this sounds silly and i am probably missing something here, but thanks for taking the time to reply x