Mortgage Insuance Endowment

jimbo419

I tried to claim misleading info on insurance for mortgage from Standard Life. The response I got was that as my solicitor had arranged the insurance for me my claim was against him. The solicitor had sent me to the Insurance office to sign up the insurance documents. I was told there, that the mortgage should be paid off (£27000) and that I should have a substantial sum left over. I have only 2 years left of the mortgage and they say I will only get £18000. The solicitor no longer practices law. I felt that as the solicitor was paid a commision of £40 by the insurance company then his position should have covered under the Law of agency. The insurers don't agree and wont cough up any compensation. What can I do I am now disabled and on pension credit

Jimbo419

dunstonh

I felt that as the solicitor was paid a commision of £40 by the insurance company then his position should have covered under the Law of agency.

Standard Life have absolutely no responsibility for the advice you may or may not have got from a third party. As far as they are concerned an application just turned up in the post and they processed it. They are not liable for the actions of the solicitor and their response is quite correct.

I have only 2 years left of the mortgage and they say I will only get £18000.

I suggest you read it again as it almost certainly does not say that. It will give you three example projections which do not include any terminal bonus that has accrued to date.

What can I do I am now disabled and on pension credit

Solicitors only came under the juridstiction of the FSCS from 2001 (for new business) so you have no protection there. I'm not sure but I dont believe there is any equivalent body for the Law Society (who regulate solicitors). In which case, it would be the end of the road.

The endowment may not be doing as bad as you think. We had someone post yesterday that their SL endowment is paying a surplus on maturity. SL project from the surrender value and not the current value on a number of their plans (mostly older conventional with profits plans). They also do not include any terminal bonus that has accrued to date so they are projecting from an artifical value. This typically understates the likely peformance.

SL plans are not what they once were and I am not saying that you will hit target but it may be worth a review just to verify where you are likely to end up rather than relying on documents which are inaccurate.