endowment compound intrest

old_seadog_2

I got behind about 15 years ago with my endowment payments and the company are treating this as a loan on the policy and charging me 11% compound intrest which has increased the ammount i supposibly owe considrably can they charge 11% with rates as low as they are now or are they hoping i dont complain and just pay this seems very unfair.I only have 2 years left till maturity and there is a big shortfall so paying it all back to them in a lump sum seems pointless they are taking money away from me when i can least afford it.any solutions gratefully recieved

dunstonh

can they charge 11% with rates as low as they are now

Yes that can. Actually, I am surprised it is as low as 11%. It was never a form of cheap borrowing.

just pay this seems very unfair.

You are not going to benefit from mass volume lending rates as they don't have the numbers to offer such terms.

I only have 2 years left till maturity and there is a big shortfall so paying it all back to them in a lump sum seems pointless they are taking money away from me when i can least afford it.

The policy wont be making 11%. So, you are paying more than it is making. Clearing it may well be the best option if you have the funds available.