Standard Life endowment.

Compensationitis

Overbonusing as per Equitable Life

Poppy9

My mortgage is discounted until Nov 05 and then the tie in ends. My ISA is doing very nicely at the moment so we have decided to leave it one more year and then pay off a lump sum. I also have some additional savings which we are going to use to pay off 10% of the mortgage this month. With our mortgage we are only allowed to repay 10% of the mortgage each year before incurring penalties. Back to SL I am right in assuming then there is no way this is going to reach 17k by 2010

EdInvestor

Poppy9 wrote:

I am right in assuming then there is no way this is going to reach 17k by 2010

It's very unlikely.:( Expect the guaranteed value, possibly with some very small additional annual bonuses, plus a DM bonus as above.

Poppy9

I have just had a glimmer of hope. The estate agents I bought the endowment off no longer exist. However I have just had an email from the estate agents that occupy the same premises to say they aquired the old estate agents in 1987. The new estate agents is a sub. of The Principality BS. I am now going to write to them to ask for compensation. Luckily I have the original endowment offer letter - no mention of risk of not paying off mortgage. Wish me luck (I think I am going to need it).

Poppy9

I have just received this letter from the Estate Agents who took over the company that sold me the Endowment in 1985.

Thank you for your letter...................

This transacton took place prior to the implementation of the FSA and at the time X company acted as a mortgage intermediary.

We are advised that under the provisions fo the Limitation Act your claim is now out of time and we are therefore unable to entertain it. If you have contrary advice no doubt you will let us know.

Any advice on how to respond to this letter?

Thanks

Compensationitis

MGM, yuck!

You need to complain about that one!

Lady_K

I have a Standard Life Endowment too. What happened to the promise top up thing they had? Is it still in place or what and if so why isnt that included on any statements do we have to add it on making it like the actual amount at maturity more?

How much do you think we will get when they demutualize? my mortgage is for 27k

dunstonh

The removed the promise. Unless the wording says guaranteed, nothing else is. A "promise" is a marketing phrase which allows the company to break it when things dont go well.

demutualisation bonus is not known yet. Average is expected to be £1100. However, it could range from £300 to £30,000.

Lady_K

omg so that means they arent paying the promise now...

I got a red alert too it says...

total current value 1/2.05 £8,112.70

total value on 1/2/04 £7,535.60

min amount on maturity £13,824.60

what i might get back...

4.00% 14,100.00
5.00% 16,300.00
7.50% 18,800.00

Target amount is £27.000

Is there nothing else we can do about it? I claimed for missold endowment and only got just over 1k

I cant see anywhere it says guarantee at all

my monthly payment is £33.67 pm and it finishes in 9 years

Bonus added this year £46.96 previous years £5,002.64 total £13,824.60

dunstonh

Your compensation would have put you in the same position that you would have been on repayment mortgage. So, if you havent already, convert over (or at least investigate that option).

The shortfall may seem quite large but you will probably find minimal cost differences in switching to repayment basis. Particulary if you can sort a mortgage deal at the same time.