Endowment claim with General Accident

sbcurran

Hi folks

Before I met my wife she had an endowment mortgage with General Accident and I believe she was mis-sold it as the risk was not explained and was told it would mature by retirement with an additional lump sum. She has since sold the endowment as it was predicted that it would fall short by approx £15k. It was purchased after 1988 and was sold approximately 5-6 years ago.

I know that GA merged with Commercial Union (CGU) then with Norwich Union and now known as CGNU. Should we make the claim directly to CGNU?

Any other advice would be greatly appreciated.

Thanks
Sean

crossleydd42

I'd have thought that you have no claim if you no longer possess title to the policy.

dunstonh

You complain to the advising company. It should be noted that any redress given will be up to the point it was used for the mortgage. The timescales you mention suggest it was before the stockmarket crash and before that point, most endowments were in surplus. So its quite possible that even if the complaint was upheld that you would not get any redress paid.

dreamylittledream

dunstonh wrote:

You complain to the advising company. It should be noted that any redress given will be up to the point it was used for the mortgage. The timescales you mention suggest it was before the stockmarket crash and before that point, most endowments were in surplus. So its quite possible that even if the complaint was upheld that you would not get any redress paid.

Not quite true dunstoh as if the mortgage was redeemed a long time ago and not due to risk, policy payments will be refunded with interest from the date the mortgage was redeemed to now.

The loss here could easily produce compensation

EdInvestor

Refunds of policy payments only apply AFAIK when someone has been missold a savings endowment. With a mortgage endowment (as here) the person is put back in the position s/he would have been in, if s/he had been correctly sold a repayment mortgage.

Thus anyone who surrendered or sold before the market crash does not usually get any redress as their endowment will have performed such that they are in the same (or better) position as the alternative, even though they may have been missold. No loss = no need for redress.