Mis-sold Endowment Offer - Help please

anna2121uk

Hi all,

I am hoping you can help me....
So my mum had 3 endowment policies from years ago and they never reached there targets, so i told her i could complain for her and see what she gets...turns out she thought it was a waste of time but let me do it anyway - so all three were through Nationwide and the first one came back and she was offered around £4900 she was so happy - so she accepted the offer and a week later a cheque came through the post.
The next two policies took a bit more time to come through and they sent more letters asking for more details on the mortgages at the time - i then sent another letter telling them they had all the details and they could continue the other settled investigation without and if they couldnt to let me know and i would pass it to the financial ombudsman (i actually thought at this time they thought shes already had £4900 so i think they were dragging there feet) sure enough two days after they received my letter - a letter came through saying she was mis-sold. The offer took a couple of weeks (the first offer was within days) and when it finally came the compensation amount was £3900 another great result - only this time they said they werent going to send a cheque but take it off her current mortgage account?! not quite the answer we wanted - i just wondered if they could actually do this or if you could ask for the cheque again - The endowment policies were in my mothers name only and taken out during her first marriage - the mortgage he now holds is joint with her second husband so can they actually do this? Any help would be greatly appreciated.
Thanks All

dunstonh

i just wondered if they could actually do this or if you could ask for the cheque again

Normally, they can only do it if the debt (mortgage in this case) is in arrears or default. Potentially, they could do it if the endowment is in a shortfall position as many lenders do have in their T&C that they can take action if they have concerns over repayment of the mortgage on maturity. However, it isnt that common unless the endowment is also being surrendered at the same time. (the redress is based on the endowment being surrendered and the redress being paid to the mortgage and converted to repayment basis - Some insist on the redress coming that way as that is effectively what the complaint is requesting).

She should ask them for the cheque instead and they may be happy to oblige. They may also ask her what her repayment plans are on maturity given the shortfall position. They do have a right to ask and be told.

anna2121uk

Thanks - the mortgage account is not in arrears and i did manage to find this quote from Nationwide online regarding compensation being paid off current loans etc
"Nationwide says: ‘As with all financial services institutions, Nationwide has the right to set PPI compensation payments off against debts due on the account to which the PPI applies.
‘We believe this is a fair and reasonable approach and it only applies to our customers in arrears.
‘Customers who have a loan with us which is not in arrears can choose whether to use any PPI redress they receive to set off against their loan or have a payment direct to them by cheque.’"
We will write a letter as the endowment policy was actually surrended many years ago and the complaint was in regards to how the policy was sold. The joint mortgage she has now has no connection to the endowment policy. I am hoping they are happy to obilge - i will let you know how it goes...
Thanks

dunstonh

Your request for cheque on this seems fair and they should change it over.