Lost out on Endowment

Akashearsy

I am still angry many years later and in light of recent events with PPI I'm not sure if I am still complaining or have grounds to re-open. Cutting a long story short in the late 90's I received several letters from Legal & General stating my with profits endowment was unlikely to meet the mortgage on maturity. After a few of these I cashed it in 2001 and intended to pay off some of the mortgage and take out a life insurance policy for my wife and I, I moved to a re-payment mortgage. I managed to get one straight away for myself but although my wife had no serious health issues or so we thought I was finding it a bit more difficult to get cover as she was on some tablets and HRT. We were both in our early 40's. Tragically and suddenly my wife collapsed and died from a heart attack. Due to having giving up employment to look after the children the house became unaffordable so I had to sell it as mortgage arrears were building up and re-possesion was likely. If L & G hadn't written to me and I took the fatal decision to move the mortgage type the house would have been paid off avoiding this. Later I tried to claim mis-selling from L&G which it was and was told tough luck. I went through a protacted complaint with the FSA and eventually they fobbed me off stating the value of the money cashed with L & G was equitable with what would have been paid through a re-payment mortgage. This to me did not address the issue that it was mis-sold and that it was a with profits policy and that if there was any chance of it ending not even meeting my mortage at the end I would not have taken it out. Also although it was pretty unique it left pretty traumatic results fro me and my children.

Does anyone think in light of todays events I have a new case even though the FSA did not support my claim

Thanks

hcb42

I sympathise with you, but I don't really think there is a connection between the cashing in the policy and the death of your wife, also endowments not performing is not normally a mis sale.

I appreciate it is hard, but no amount of money is going to change anything

dunstonh

I went through a protacted complaint with the FSA and eventually they fobbed me off stating the value of the money cashed with L & G was equitable with what would have been paid through a re-payment mortgage.

This means you won your complaint. However, you were not financially worse off. So, nothing to pay. So, you dont have a case I'm afraid.

This to me did not address the issue that it was mis-sold and that it was a with profits policy and that if there was any chance of it ending not even meeting my mortage at the end I would not have taken it out.

It did address the issue as it was found you were not worse off at the time of your complaint. i.e. had you been on a repayment mortgage from the start, you would have been in a worse position yet that was what you were asking to be.

If you had sought advice at the time of surrender then that would have given advice protection but as you did it off your own back, it was your decision. Sorry.

Akashearsy

Yes I see the point I am contending the a chain of events not caused by me led to cashing in the policy and moving to a re-payment mortgage and therefore losing the life cover portion of the endowment. However, as unfortunate it was and unscrupolous the insurance companies were I suppose using a Frank Sinatra song "Thats Life" time to move on but I am much wise

Thanks

ValHaller

Akashearsy wrote: »

Yes I see the point I am contending the a chain of events not caused by me led to cashing in the policy and moving to a re-payment mortgage and therefore losing the life cover portion of the endowment. However, as unfortunate it was and unscrupolous the insurance companies were I suppose using a Frank Sinatra song "Thats Life" time to move on but I am much wise

Thanks

You had the option at the time to take out a simple life insurance policy to replace the life cover component of the endowment. Sorry that this may only be clear in hindsight.

Akashearsy

Yes Val and I did for me but my wife it was more difficult in hindsight I should have done that before cancelling