Reclaim against a misold endowment

cbd1

Hi I successfully claimed against a misold endowment around 5 years ago and was paid up to the shortfall at that time. My endowment is about to mature and I find that there is still going to be a substansial sum owing at its termination. Is to possible to claim again to make up the difference. Thank you.

magpiecottage

No. The purpose of the redress was to put you back into the position you would have been in if you had taken a repayment mortgage at outset.

The calculation will have considered how much your mortgage really was at the time of the calculation and subtracted the amount that it would have been if it had been a repayment mortgage at outset.

From that they surrender value of the policy would have been subtracted. The idea is that you could take the redress and the surrender value, pay it off your mortgage and convert it to a repayment mortgage over the remainder of the term.

Had you done that, you would now owe nothing.

If you have been paid redress without involving the Financial Ombudsman Service, it will almost certainly be subject to you agreeing it is full and final settlement.

If it was an Ombudsman's decision to award redress than that would become legally binding on both parties when you accepted it and therefore neither the Ombudsman nor a court can alter it.

The shortfall is now entirely your responsibility.