Endowment mis-selling claim. Any advice please?!!

pandyp

We recently made a claim against Friends Provident for mis-selling an endowment policy taken out in 1996 to cover £34,250 which is now predicted to pay out £29,000. They have offered us a grand total of £258.67 in compensation (they're just putting us in the position we'd now be in if we'd taken out a repayment mortgage from outset) but say they cannot find any evidence that we were told the endowment would definitely repay the mortgage. (Our word against theirs). They also say that because we have switched 50% of our mortgage to a repayment basis they have reflected this change in their calculation. What has this got to do with anything? What business is it of theirs how much we actually need to repay the mortgage? We took out the policy in good faith to cover an amount of £34,250 regardless of how we subsequently chose to repay our debt. Surely they should be looking at the mis-selling claim and not the way we have chosen to repay our mortgage after we took out the policy. Also they say that if we accept the compensation, the policy has to be surrendered. Is this acceptable? Can they insist on this?

Any advice would be greatly appreciated!

EdInvestor

pandyp wrote: »

They have offered us a grand total of £258.67 in compensation (they're just putting us in the position we'd now be in if we'd taken out a repayment mortgage from outset)

Your complaint has been successful: this is the formula used to calculate compensation by the regulator.

They also say that because we have switched 50% of our mortgage to a repayment basis they have reflected this change in their calculation.

Again, this is part of the formula.

Also they say that if we accept the compensation, the policy has to be surrendered. Is this acceptable? Can they insist on this?

No, but it's probably the best thing to do.

Post some info about the policy and we can explain why.

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts
Interest rate payable on mortgage.

[In the case of a successful misselling claim and surrender of policy, IIRC the company will pay the cost of repalacement life cover if needed.]