Endowment Missold

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 ?

Replies

  • dunstonhdunstonh Forumite
    111.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Forumite
    The advising company is liable. If this is no longer with the Halifax then they do not have the liablity. The liability is with the current owners.

    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.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Halifax replied as a goodwill gesture and explained they sold their liabilities to HTC.

    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.
  • dunstonhdunstonh Forumite
    111.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Forumite
    Depending on the start date of the plan, you may still have the FSCS to pass the complaint on to.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • The start date was March 1988 so one month before FSA would investigate mis-selling of policies i believe.
  • dunstonhdunstonh Forumite
    111.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Forumite
    I'm afraid it appears you are out of options.

    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.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
This discussion has been closed.
Latest MSE News and Guides

Check your Clubcard vouchers

Use our trick to extend them

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals