Help with Endowment claim please!

Zyyb

Hi all,

I have tried to claim (on behalf of my stepdad) for his mis-sold endowment, however i have received a reply back from Phoenix today and am confused as to their figures and the intent of the message, can anyone help?

They seem to be saying that if Bob had chosen a repayment mortgage instead of the endowment (even though it's coming up 4k short) we would have been worse off?!

I can send anyone a copy of all the documents and scans we have received if they can help.

Thanks

toonfish

Zyyb wrote:

Hi all,

I have tried to claim (on behalf of my stepdad) for his mis-sold endowment, however i have received a reply back from Phoenix today and am confused as to their figures and the intent of the message, can anyone help?

They seem to be saying that if Bob had chosen a repayment mortgage instead of the endowment (even though it's coming up 4k short) we would have been worse off?!

I can send anyone a copy of all the documents and scans we have received if they can help.

Thanks

they may well be right, as the "shortfall" is only a projection. He could cash in his endowment and be £4000 better off than if had he taken a repayment mortgage at the time. Basically the surrender value is higher than the amount of capital that would have been repaid.

EdInvestor

What he should almost certainly do is surrender the endowment and use the lump sum immediately to reduce the size of the loan, then increasing the monthly mortgage payment by the amount of the endowment premium.

Post some figs to see what's what.

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturoity projections

Mortgage interest rate.

lemontart

but will the endowment cover the mortgage it was taken out to cover - and was it mis sold to him............whether or not he is better off with it is not the point.......technically speaking that is.

Beth
xx

dunstonh

It doesnt matter. At this moment in time, he is financially better off with the endowment mortgage. This is not an uncommon position. What happens in the future is unknown but if he chooses to switch to repayment now, then that is his choice.

It is wrong to assume that an endowment complaint, even if upheld, will result in redress being paid. If you are financially better off with the endowment mortgage then you arent entitled to a penny.

Shortfall warnings are also highly flawed. There are many examples of projections showing shortfalls a year before maturity but the endowment going on to pay a surplus. Indeed, there is a well known case of a Standard Life endowment showing a shortfall 3 months before maturity in the maturity notice that paid a surplus. You shouldnt read that and think its all going to get better if you have a bad one. The flaw in the projections also works the other way and that some endowments are going to be worse than the projections, not better. A projection at 4, 6 & 8% only means 4, 6 & 8%. You have funds out there there that are averaging 10% p.a. and others that havent paid a penny in 5 years.

EdInvestor

No proper judgment can be made without looking at the figures.

toonfish

lemontart wrote:

but will the endowment cover the mortgage it was taken out to cover - and was it mis sold to him............whether or not he is better off with it is not the point.......technically speaking that is.

Beth
xx

sorry, but that is exactly the point.

so, if he is already better off, he should get "compensation" - for what?

perhaps I can claim because my ISA is worth £8500 when I only expected it to be £7500?

defender_of_the_weak

Finding no loss case with Phoenix is quite rare if it came from a Royal or Sun Alliance sale.

Yes toonfish you could make a 'complaint' if you thought that the policy was inappropriately or incorrectly sold, however any 'claim' for compensation is based on financial loss. So you acheive a moral victory but no cash. Funnily enough, very few people take the time and trouble to pursue a moral standpoint.

toonfish

defender_of_the_weak wrote:

Finding no loss case with Phoenix is quite rare if it came from a Royal or Sun Alliance sale.

Yes toonfish you could make a 'complaint' if you thought that the policy was inappropriately or incorrectly sold, however any 'claim' for compensation is based on financial loss. So you acheive a moral victory but no cash. Funnily enough, very few people take the time and trouble to pursue a moral standpoint.

indeed, as many of them are speculatively claiming in the hope of getting a cash windfall.

Zyyb

defender_of_the_weak wrote:

Finding no loss case with Phoenix is quite rare if it came from a Royal or Sun Alliance sale.

Yes toonfish you could make a 'complaint' if you thought that the policy was inappropriately or incorrectly sold, however any 'claim' for compensation is based on financial loss. So you acheive a moral victory but no cash. Funnily enough, very few people take the time and trouble to pursue a moral standpoint.

Hi All,

yes it did come from a RSA Sale, well whoever it was before then. I'm going to look at the figures and print them up here. Thanks for your help guys, i really appreciate it.