Endowment Missold
jane_D_4
Forumite 11 Posts
Following investigation of the sale of my endowment policy. Halifax informs me they sold their shares in HTC and with this sale went their legal obligation and liabilities for this Company. Our complaint has been upheld and it was felt that an endowment was not the most appropriate method for us to replay our mortgage. Although it was not a requirement at the time of the policy to establish attitude to risk and they state they are not convinced that the risks were adequatley explain to us.
They go on to say they have no legal obligations regarding the sale of the policy.
Our complaint was that the adviser told us the policy would pay of the mortgage and give us a lump sum at the end of the policy.
We are told this is being upheld as we arranged a low start endowment which carries a guarantee that the sum payable on death of a policy holder during the terms of the policy will not be less that then guaranteed death benefit. On survival to the end fo the term, the maturity value will be equal to the basic sum assured plus bonuses.
So on one hand the Halifax are agreeding with our complaint and that an endowment policy may not have been the most suitable method of replaying the mortgage debt, but our dismissing any responsibility for this. Can they do this ?
They go on to say they have no legal obligations regarding the sale of the policy.
Our complaint was that the adviser told us the policy would pay of the mortgage and give us a lump sum at the end of the policy.
We are told this is being upheld as we arranged a low start endowment which carries a guarantee that the sum payable on death of a policy holder during the terms of the policy will not be less that then guaranteed death benefit. On survival to the end fo the term, the maturity value will be equal to the basic sum assured plus bonuses.
So on one hand the Halifax are agreeding with our complaint and that an endowment policy may not have been the most suitable method of replaying the mortgage debt, but our dismissing any responsibility for this. Can they do this ?
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A comparable situation is where Lloyds Bank are liable for Abbey Life claims even in the period that they didn't own them.
However, I cannot see how Halifax can pass judgement on a case that they have no liability on. If the responsibility is no longer with them, then they shouldnt have reviewed the case and passed it on to the company that does have the liability.
HTC was sold and ceased trading. My understanding is that you cannot sue a company that has gone bust.
Goodwill Financial Services took over the best parts of HTC but none of their liabilities.
Looks like this is sewn up.
If your mortgage is still with halifax, you could try a complaint that although they have no liability for the policy, you did buy it through them with the mortgage and although they have no legal requirement, they ought to offer something otherwise you will take your mortgage and all other business elsewhere.