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ENDOWMENT COMPENSATION

edited 30 November -1 at 1:00AM in Mortgages & Endowments
1 reply 1.8K views
georobgeorob Forumite
18 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
my mother in law has just been offered compensation for a mis sold endow.
she is retired and the endowment went well (13 yrs) into her retirement
the compensation amounts to premiums paid plus intrest but no additional compensation for the mis selling and anguish
is there any point in persuing this with the ombudsman?
she has to cancel the policy which has life assurance associated with it any suggestions as to the best course of action
for info she is selling her house and downgrading so that she no longer has a mortgage to pay off
thanks geo
if i had known then what i know now

Replies

  • dunstonhdunstonh Forumite
    106.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    This would be a slightly different complaint to the usual endowment mis-selling complaint.  

    It looks like it is being resolved on the basis that the product was innappropriate as it went past retirement age and probably failed the affordability test which says you can afford the premiums now and in the future.   This means that assuming your circumstances do not change, would you be able to afford it over the term.  A policy going past retirement age would have to prove you would be able to continue paying it even though you would have a lower income. A warning would have to appear on the report saying this was discussed.  

    It appears in this case that the insurer has decided there was no consideration to this.

    Its possible the real complaint lies elsewhere.   The person that set the mortgage up to go past retirement age has done her no favours.    The endowment has been set up to cover that, almost certainly after the mortgage was agreed.   The endowment is one thing, the mortgage is another.   The insurer cannot be responsible for the mortgage lender.
    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.
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