endownment problem

MARKBLACK

A couple of years ago the nationwide sent me a letter saying they were unable to pay my endowment policy in full at the end of term, as the market had changed. Anyway I was into 15 years of paying the policy – hence I reckon I was owed £6,000 of a £10,000 agreement projected for 25 years. At the time they paid me about £1,200 as a final settlement.

Anyway I now have asked them to rethink their offer. They don’t want to know so I now am thinking of taking them to the small claims court can I do this and what will it cost me?

MB

dunstonh

hence I reckon I was owed £6,000 of a £10,000 agreement projected for 25 years.

What agreement is this? A the start, they issue example projections based on assumed growth rates. They state they are not guaranteed and are not minimum or maximums. Nothing is agreed with regards to an amount.

At the time they paid me about £1,200 as a final settlement.

The redress process was to put you in the position you would have been had you been on a repayment mortgage from the start. The surrender value and £1200 should have been paid off the mortgage and you switched to a repayment mortgage. However, it was left to the customer to decide whether to do that or not. Did you?

Anyway I now have asked them to rethink their offer. They don’t want to know so I now am thinking of taking them to the small claims court can I do this and what will it cost me?

You accepted compensation already using the regulator defined process. You are now after a second lot of compensation. If you wanted to go to court you should not have accepted the initial compensation package which you would have agreed as full and final settlement of your complaint.

Endowment complaints in court were rare and most lost. Yours is over before it starts as you accepted compensation.

letthemeatcake

was it a £10000 endowment taken out over 25years? Did you complain to the Nationwide about a shortfall on the original policy and you received £1200 as compensation which you accepted at the time?

The policy should still be ongoing so you should still get an amount when it matures. The £1200 was to help make-up the shortfall although I expect it will be nowhere near the amount needed.

makeyourdaddyproud

There is nothing stopping him from asking for more money.

They will either refuse or renegotiate. What's is there to lose by asking?

I suppose the issue could be pursued if he could demonstrate ambiguity in the initial offer or confusion. Why not give it a try?

StuC75

If you accepted £1,200 as Final Settlement, then thats what it was... Final Settlement...

holly_hobby

letthemeatcake wrote: »

was it a £10000 endowment taken out over 25years? Did you complain to the Nationwide about a shortfall on the original policy and you received £1200 as compensation which you accepted at the time?

The policy should still be ongoing so you should still get an amount when it matures. The £1200 was to help make-up the shortfall although I expect it will be nowhere near the amount needed.

No, they were not, nor can they be, compensated for poor performance (ie loss of expectation), which is never guaranteed at maturity on a low cost endowment (notwithstanding the basic sum assured/death elment)..

Their complaint would have be upheld on the suitability of the policy risk basis to the OPs own ATR - which if they claim they would have effected a repayment mortgage from outset, is risk adverse.

The compensation awarded actually represented the monetary difference at the point of redress calcualtion (inc the surrender value of the policy), of the financial position the OP would have been in if they had effected a C&I mortgage instead of an IO arrangement, from outset.

As the OP had complained on lack of suitability (ie they wouldn't have accepted the policy/risk if known), one would have expected them being risk adverse individuals, to switch to a repayment mortgage (wholly or at least partially) and surrender the endowment policy to reduce the os debt accordingly (indeed some providers automatically surrendered the policy on an uphold).

It appears however, that although they accepted the compensation (which is full and final) , they instead chose to maintain the policy - and now being aware of the non-guaranteed nature, did so in full acceptance of the performance risks - which unfortuantely for the OP haven't improved.

There is no re-negotation, or any more pennies to be had - they have had what was lawfully due, and any further complaint on the same subject, will be immediately rejected on this basis.

Hope this helps

Holly

MARKBLACK

dunstonh wrote: »

What agreement is this? A the start, they issue example projections based on assumed growth rates. They state they are not guaranteed and are not minimum or maximums. Nothing is agreed with regards to an amount.



The redress process was to put you in the position you would have been had you been on a repayment mortgage from the start. The surrender value and £1200 should have been paid off the mortgage and you switched to a repayment mortgage. However, it was left to the customer to decide whether to do that or not. Did you?



You accepted compensation already using the regulator defined process. You are now after a second lot of compensation. If you wanted to go to court you should not have accepted the initial compensation package which you would have agreed as full and final settlement of your complaint.

Endowment complaints in court were rare and most lost. Yours is over before it starts as you accepted compensation.

Theres was no assumed growth rates, explained to me I was told to take this endowment as it was better for me - I wanted a repayment mortgage end of...!

MARKBLACK

StuC75 wrote: »

If you accepted £1,200 as Final Settlement, then thats what it was... Final Settlement...

I was told this was the final offer. I was confused and in shock at what they were doing to me it cost me a lot after trusting their advice, there was never a mention it wouldnt pay out, I'd have been out of there without a shot

MARKBLACK

letthemeatcake wrote: »

The policy should still be ongoing so you should still get an amount when it matures. The £1200 was to help make-up the shortfall although I expect it will be nowhere near the amount needed.

Nobody told me to keep paying the premuim I thought that was the end

opinions4u

MARKBLACK wrote: »

Nobody told me to keep paying the premuim I thought that was the end

What made you decide to stop paying it?

MARKBLACK

holly_hobby wrote: »

There is no re-negotation, or any more pennies to be had - they have had what was lawfully due, and any further complaint on the same subject, will be immediately rejected on this basis.

Hope this helps

Holly

I am taking them to the small claims court I have already complained several times, I just now need to know how much it would cost in the small claims court, I have been disrespected by them they even took me to court because I withheld paying back a loan with them, until they sorted this mess out. I ended up with a CCJ and a lock down of my accounts whilst they fought for their loan money. I ended up paying a lot higher interest rates for another mortgage. So don’t ask have I complained…………I realize now I did go in like a bull in a china shop, I even had sercurity try to move me out of their office.