Endowment mis-selling from friend.

digby637

Here's a sticky one for everyone.
We were sold an endowment in 1995, albeit a small one for £30K, from a friend of ours who helped us get a mortgage also as I had had financial problems in the past with fairly sizeable debts and a repossesion on my previous house.

When the inevitable letter came advising us of the shortfall, we had already preempted it and changed to a repayment mortgage. We decided that we would attempt to keep the endowment and use it as a savings plan, which so far seems to be working fine.

As it was a mate who had sold us the endowment, I didn't really want to claim and get him into bother or worse still lose his commission so I contacted him to ask his advise. He told me that as far as he was aware he did advise us that there could potentially be a shortfall but we cannot honestly remember whether he did or not. He also said that if we felt that we had a case that we should do whatever we felt was right, but the one thing that annoyed him was when people claimed compensation, but still kept the endowment.

I am honestly torn at the moment, as my wife says we should make a claim, but I am wrestling with my concience as to whether it is the right thing to do. We certainly could use a few grand at the moment but I really don't want to upset my mate.

I recently made a claim on the endowment I had for my previous house (the one that was repossesed) which was cashed at the time of repossession, and promptly received a cheque for £800.

Has anyone got any advise as to what I should do please ????

silvercar

If you do put in a claim you can always withdraw it at a later stage.

We had the same situation one was sold to us by my father-in-law who still maintains it was good advice at the time. We didn't complain about that one.

We complained about one that was supplied by a friend of his. He received the complaint from standard life and told us he wasn't interested and wouldn't be replying! As he was then trading from a company he has since dissolved there is not a lot we could do.

EdInvestor

I should just make the complaint. You could also surrender the endowment - that should keep him happy as he's more or less advised it Post some info about it to see if that would be the right thing to do.

Insurance company
Guaranteed sum assured
Declared bonuses
Surrender value (ring up and ask)
Monthly premium,
Maturity date

digby637

Thanks for that EdInvestor.
forgive my ignorance, when you say post some info, do you mean on this forum ????

EdInvestor

Yes.:) You can send it by PM if you'd prefer.

Financial_Savvy

If you get compensation then you where better of on a repayment mortgage. Let the FOS calculate what is write or wrong.