endowment mis-selling claim - outcome

Lizzybet_2

I bought an endowment policy - commenced 14 Jan 1994 and, due to its poor performance, surrendered it on 10/07/2003. I have complained that the pol was mis-sold to me, and following months of correspondence have received a letter outlining the outcome. Basically, my complaint has been upheld, but they "have completed the statutory calculations as regards redressing your mortgage and no compensation is due". This is not a complete surprise.
A Mortgage Comparison is enclosed with the letter outlining the situation with "A interest only", and "B Repayment options". However I am puzzled to read that the calculation is for the period 02/01/1994 (that is BEFORE the policy commenced) to 01/12/1997 (nearly SIX YEARS before surrender date). Does anyone know what this means?

dunstonh

If you are not financially worse off then you dont get a payout. This is quite common with better endowments or where you had a very short term where the endowment was utilised (not much comes off a repayment mortgage in the early years and an endowment can build up a value quicker).

Did you convert your mortgage to repayment basis in 1997? The calculation is only done for the period the endowment is utilised against a mortgage.

Lizzybet_2

Thanks for that. It makes sense now! I downsized in Dec 1997 and did not need to use the endowment against a mortgage from that point; just kept it going as savings - or, in this case, losses!