Endowment mis sold ?

windy2

Don't know if I have grounds for a complaint,hopefully someone might know.Briefly, I took out a mortgage in 1989 with a PEP through a broker.
The mortgage was with the Newcastle Bldg Soc which became the Abbey,who in 2000 told me the PEP would have a shortfall.They advised me to take out a new ISA at double the cost of the PEP which was then frozen.
They now tell me that when the ISA finishes in 2019 the predicted amount will be sufficient to settle the mortgage.The problem is my mortgage finishes in 2014 !!! They have got it wrong.Do I have a case.

Mr_helpful

I would guess no as its not an endowment. ISA's and PEP's were not generally targeted to an amount as were endowments but for a more definitive answer contact the Financial Services Ombudsman

maninthestreet

There might be a case here for mis-selling - if the ISA was sold to you to replace the PEP in paying off the mortgage, there was no use in selling you something that was known would definitely not have the funds available when
the mortgage ends.

dunstonh

There is some confusion here.

PEPs ceased to be available and were replaced with ISAs. The funds in PEPs were allowed to be kept but they couldnt be paid into any more. The funds had to be redirected to an ISA.

So, the actions to switch from PEP to ISA have nothing to do with the suitability.

However, it would have to be a pretty rubbish investment to be off track from hitting target in 2000. All the PEP/ISA mortgages on my books are around 30-40% above target at this time. Have you had an independent review the quality and suitability of the PEP/ISA?

And, yes, the same rules apply to PEP/ISAs as they do with endowments. Suitability has to be right and correctly documented.