Endowment top up not initially paid

greyguitar

I recently received £1084 out of the blue from Standard Life along with a letter of apology for not paying on maturity. This related to an endowment policy which had an £8,000 shortfall. After my initial pleasure at receiving this windfall I became angry. Why? Included in the payment was an amount of £64 relating to interest over the intervening period (roughly 6-7years) My thought was, that because they failed to pay this amount at the correct time, I was forced to borrow an extra £1000 to cover the shortfall over 5 years. Would it not be fair to ask for the interest it has cost me over that period i.e I may have lost a theoretical and paltry £64 over that period but I have lost an actual £4-500 in interest applied to the extra £1000 I wouldn't have to have borrowed had SL not made this "mistake". The cynic in me asks whether this was a mistake or a way to "borrow" money at a cheap rate. If there are 1000 like me, then that's £1M used by SL at a paltry 0.5%

bigadaj

greyguitar wrote: »

I recently received £1084 out of the blue from Standard Life along with a letter of apology for not paying on maturity. This related to an endowment policy which had an £8,000 shortfall. After my initial pleasure at receiving this windfall I became angry. Why? Included in the payment was an amount of £64 relating to interest over the intervening period (roughly 6-7years) My thought was, that because they failed to pay this amount at the correct time, I was forced to borrow an extra £1000 to cover the shortfall over 5 years. Would it not be fair to ask for the interest it has cost me over that period i.e I may have lost a theoretical and paltry £64 over that period but I have lost an actual £4-500 in interest applied to the extra £1000 I wouldn't have to have borrowed had SL not made this "mistake". The cynic in me asks whether this was a mistake or a way to "borrow" money at a cheap rate. If there are 1000 like me, then that's £1M used by SL at a paltry 0.5%

Raise it as a complaint and see what they offer, if not acceptable take them to the regulator. You calculatioon of interest looks high, but their interest rate is way too low, a fair amount would be somehw re in the middle I'd aim for £200-£300.

Annisele

I agree the OP's interest rate calculations look high - but if they can prove they did lose that amount, I think SL should pay it.

So, I reckon OP should raise a complaint with SL, but include evidence of the actual rate of interest they paid on their mortgage.

bigmondy

Is this 'TOP UP' not the Standard Life MEP that the OP is referring to?


https://forums.moneysavingexpert.com/discussion/3809733


Since when did SL start paying Top Up's?