Mis-sold endowement advice please

sarahe

Hello
I know I've left it very late and I did ask about a year ago - but I still haven't sent the letter off.

I started a new job in 1993 at a school - before getting my first month's pay -I wanted to get a mortgage. I asked my head for a letter stating my employment and he told me he could organise it for me.

I took out an endowment with Friends Provident through him. He told me I would have enough at the end of the 25 years for a cruise or a new car . But my mortage is with Abbey and I pay them the interest on the amount I borrowed each month. My head left the school back in 1998.

So my question is who do I send my 'martin money saving' type letter to?

Abbey or Friends Provident?

dunstonh

Abbey. However, you better be quick and it may even be too late as FP have been very pro-active in getting cases time barred.

sarahe

Thanks for your quick reply - I've been filing letters - and have just decided to move house and was shocked by the deficite - I'll send the letter anyway

sarahe

Thanks for your quick reply - I've been filing letters - and have just decided to move house and was shocked by the deficite - I'll send the letter anyway

sarahe

Sorry for my poor spelling-it's my typing that's bad - when I try I can spell!
Just sent the letter off - I can but hope.

I borrowed £38,000 and it may only pay out £18,000 eek - I maybe asking for help on what to do about getting another mortgage.

brixandmorta

Hi

Just wanted to ask some advice please. Basically I took up an endowment in 1990 for £20,000. I have complained to the Prudential that I have been missold the policy, this was on December 3rd 2006. Today through the post I have received an offer of compensation for £2,017.15p.

My question to anyone in the know is do I take this offer which they say has been calculated using standard rates of interest(the rates charged by the Halifax). You have an option to have you offer recalculated using your exact mortgage details. This can result in your compensation offer increasing or reducing.

Any comments would be appreciated as to any members getting more money by rejecting the initial offer.

Many thanks.

dunstonh

Just wanted to ask some advice please. Basically I took up an endowment in 1990 for £20,000. I have complained to the Prudential that I have been missold the policy, this was on December 3rd 2006. Today through the post I have received an offer of compensation for £2,017.15p.

Thats lucky seeing as all Pru endowments are expected to hit target and pay surplus. Probably got paid a redress payment due to the surrender penalty.

My question to anyone in the know is do I take this offer which they say has been calculated using standard rates of interest(the rates charged by the Halifax). You have an option to have you offer recalculated using your exact mortgage details. This can result in your compensation offer increasing or reducing.

If you can supply the interest rates for the mortgage and the dates they changed then the result will be more accurate. However, the work involved in you getting those rates will probably mean its not worthwhile. Hence why the Halifax SVR rate is used.

Any comments would be appreciated as to any members getting more money by rejecting the initial offer.

The redress method is set and unless you think the calculation is incorrect, you wont get any more. Asking for a recalculation on a Pru WP policy at this time would be daft. They are not far off from increasing their terminal bonus rates and that would reduce the redress payment. So you would end up with less free money.

brixandmorta

Hi

Thank you for your advice.

I have been receiving the RED letters from Prudential for some time now that there was a high risk that the target amount would not be reached. 3 years ago I moved house and obviously arranged a repayment mortgage for the new full amount, keeping the payments up for the endowment of £25 per month. So I was not too concerned that it would not reach the target amount, as in my house was not at risk so to speak. By the way when the endowment matures, do I get sent the amount whatever it achieves? as it will not be needed to pay the mortgage any longer.

dunstonh

I have been receiving the RED letters from Prudential for some time now that there was a high risk that the target amount would not be reached.

Projections are notorious for being inaccurate.

in 2005, 100% of Pru policies hit target with an average surplus of £2200. In 2006 this was on track to be 100% again with a surplus of £3,300.

The small redress figure of £2000 could easily be less than the surrender value. Plus it was based on figures 3 years ago and things have improved a lot in the last 3 years. In which case it would be about on track. I'm not saying it as we dont know anything about your endowment but Pru do have an extremely good record.

do I get sent the amount whatever it achieves? as it will not be needed to pay the mortgage any longer.

Yes you do.

MABLE

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sarahe

hello
well I have just got my first reply and it appears that the letter should have gone to Friends Provident not the Abbey. So although they have forwarded the letter they state that if I haven't received a reply in 2 weeks that I write again. They added an ombudsman leaflet in too. Looks like it will be a long process.