This cant be right

BJVR

Hi

Just got my Endowment compensation offer from the FSO who looked after my claim as the adviser went bust (conveniently trading under a slightly diff name).

Anyways I am looking at a possible £21000 and have been offered a measly £350.00 based on the 'where I would be' method of calculation

Quite simply I would have preferred a letter from the Endowment company NU stating that they will guarantee to pay off my Mortgage at the end of the policy.

This seems to me to be a reasonable position to me as by making me an offer the FSO must be acknowledging that I was misold.

Some help & feedback on how I can improve my payout or my thoughts on what I expect from NU would be appreciated

BJVR :money:

JoeK_3

The compensation figure is not about being mis-sold, it's about redress.

It's a case of you being put back to where you would have been had you gone for a capital and interest repayment mortgage instead.

The offer of £350 is the difference.

You will not receive anything from NU as they did not give you advice on the policy.

JoeK

BJVR

Thanks for replying

In your opinion can I still go for compensation?

BJVR

JoeK_3

No, you have been offered it.

JoeK

EdInvestor

Redress for misselling is not the same thing as sorting out your endowment shortfall. It just puts you in the position you would have been in etc etc...

If you want to do have the mortgage paid off on time, you have to a bit more.usually it needs a decision on whether or not to surrender or sell the endowment, and/or whether or not to rejig the mortgage itself so it gets repaid.

Do you want assistance with that?

JoeK_3

Beware, you'll be told to surrender or sell.

JoeK

EdInvestor

JoeK wrote: »

Beware, you'll be told to surrender or sell.

JoeK

Not at all.Occasionally we run across a good endowment.

Getting a sale quote is always recommended, so as to give an independent view on what it might be worth.Many policies can't be sold - and that might tell you they are worthless to you as well, and should be binned.

There is no obligation to go ahead with any sale.

https://www.apmm.org

toonfish

EdInvestor wrote: »

Not at all.Occasionally we run across a good endowment.

Getting a sale quote is always recommended, so as to give an independent view on what it might be worth.Many policies can't be sold - and that might tell you they are worthless to you as well, and should be binned.

There is no obligation to go ahead with any sale.

www.apmm.org

very sticky wicket - they could be unit linked plans performing well above the required returns

JoeK_3

toonfish wrote: »

very sticky wicket - they could be unit linked plans performing well above the required returns

Well done for pointing this out.

Further to this unit linked policies can't be sold but perform extremely well and certainly better than some drab unit trust or stocks and shares ISA's.

Please EdInvestor, you must understand the implications of what you write, or do you?

JoeK

JoeK_3

EdInvestor wrote: »

Not at all.Occasionally we run across a good endowment.

Getting a sale quote is always recommended, so as to give an independent view on what it might be worth.Many policies can't be sold - and that might tell you they are worthless to you as well, and should be binned.

There is no obligation to go ahead with any sale.

www.apmm.org

Once again you have made certain assumptions without even taking the trouble of finding out if the policy in question is a with profits or unit linked (as unit linked policies can't be sold).

Would it not have been a lot easier and less time consuming for you to ask the OP first, before posting a link to where you always direct endowment questions.

JoeK