endowment compensation

kstar_2

My husband was sold an endowment while he was in the Army, he did not own a property, but was told that is was a good thing to do and at the end of the term he would receive a extra lump sum.

It was 3 years after he started this endowment that we got our first mortgage. He tried to claim for compensation and put in his complaint about 2 1/2 ago. We then were told that the people that had sold him his endowment had gone into default, so it went to the FSCS approx this time last year.

He phoned them yesterday and was told that because we had been overpaying our current mortgage (only by £50 a month and when we could afford to) that this would affect the compensation, if any was due.

I have never heard this before, is this right?

Thanks

dunstonh

I have never heard this before, is this right?

Yes it is correct. The reason being that had you been on a repayment mortgage, you would have been overpaying that as well.

However, fear not. Virtually all pre-sold endowments are treated as upheld complaints.

kstar_2

Thanks dunstonh, will hopefully hear back from the FSCS or the company they have farmed us out to soon. They have new procedures to follow so fingers crossed!