Endowment Settlement - Next chapter.

machane

Back in 2006 I received an amount of £7,000 as compensation for a mis-sold endowment. As I needed some of the £7,000 I asked that I receive £2,000, credited to my personal account, and the remaining £5,000 held by my building society - Nationwide. Since then (2006) I have been paying interest, on the 2,000, to Nationwide.

I would like to know if this is common or standard practice for interest to be charged as I believed that the settlement was now my money?

Additionally, because of the severe reductions in interest rates over the last 18 months I now believe that the shortfall quoted in 2006 will now have increased proportionately.

I would like to know if my final payment of £7,000 is legally binding and should I pursue further compensation?

Thanking any & all who comment on my query.

Regards, Machane.

opinions4u

machane wrote: »

Back in 2006 I received an amount of £7,000 as compensation for a mis-sold endowment. As I needed some of the £7,000 I asked that I receive £2,000, credited to my personal account, and the remaining £5,000 held by my building society - Nationwide. Since then (2006) I have been paying interest, on the 2,000, to Nationwide.

How have you been paying interest on £2,000 that went in to your personal account? I don't get it. I think you need to clarify your explanation.

I would like to know if this is common or standard practice for interest to be charged as I believed that the settlement was now my money?

It is your money. You said "I asked that I receive £2,000, credited to my personal account, and the remaining £5,000 held by my building society".

What do you mean by the phrase "held by my building society"? Paid off the mortgage?

Additionally, because of the severe reductions in interest rates over the last 18 months I now believe that the shortfall quoted in 2006 will now have increased proportionately.

I would like to know if my final payment of £7,000 is legally binding and should I pursue further compensation?

If you have received compnesation already, then you were clearly aware of the risks involved. There are no grounds for a further payment.

A bit more clarity on exactly what has happened would be helpful.

dunstonh

I would like to know if this is common or standard practice for interest to be charged as I believed that the settlement was now my money?

It is not clear from your post what has occurred. It reads that you received £7000 and kept £2000 to spend and £5000 was put in a savings account (or perhaps off the mortgage). In those cases you wouldnt pay any interest on £2k and indeed, nowhere would there be any reference to £2k apart from the withdrawal you made in 2006.

Additionally, because of the severe reductions in interest rates over the last 18 months I now believe that the shortfall quoted in 2006 will now have increased proportionately.

Endowments dont earn interest so they would have no impact. Its more likely yours is equity backed and unit linked. So, it would have gone down a lot until March and then gone up a lot since then.

I would like to know if my final payment of £7,000 is legally binding and should I pursue further compensation?

You have no grounds to claim more. The redress payment is based on you using the surrender value of the endowment and the redress to pay into the mortgage and switch to repayment basis. You chose not to do that and therefore the consequences are are down to you and no-one else. Also, you spent some of the redress so its a bit cheeky to try and ask for more.

Any further complaint or attempt to get more will be rejected and correctly so.

machane

opinions4u wrote: »

How have you been paying interest on £2,000 that went in to your personal account? I don't get it. I think you need to clarify your explanation.

It is your money. You said "I asked that I receive £2,000, credited to my personal account, and the remaining £5,000 held by my building society".

What do you mean by the phrase "held by my building society"? Paid off the mortgage?

If you have received compnesation already, then you were clearly aware of the risks involved. There are no grounds for a further payment.

A bit more clarity on exactly what has happened would be helpful.

Well using £30,000 for the mortgaged amount and 6% as the interest rate......
I have:
pre- £2,000
=> £30,000@6%=£1,800.

post- £2,000 the product is £1,920.
ie, => 30,000 + 2,000 @6%.

I have verified this using different interest rate issued at various times.

I believe the remaining £5,000 has been deducted from my outstanding mortgaged amount.

machane

opinions4u wrote: »

How have you been paying interest on £2,000 that went in to your personal account? I don't get it. I think you need to clarify your explanation.

It is your money. You said "I asked that I receive £2,000, credited to my personal account, and the remaining £5,000 held by my building society".

What do you mean by the phrase "held by my building society"? Paid off the mortgage?

If you have received compnesation already, then you were clearly aware of the risks involved. There are no grounds for a further payment.

A bit more clarity on exactly what has happened would be helpful.

Well Using £30,000 for the mortgaged amount and 6% as the interest rate, I have :
pre - £2,000
=> 30,000@6%=£1,800.

post -£2,000, the product is £1,920 ;
ie, 30,000 + 2,000 @ 6%.

I have tested this with other interest amounts issued and the calculations hold good.

The £5,000 held by the Nationwide,I believe has been subtracted from my initial mortgaged amount.