Abbey Life Pension Mortgage

buffman

In 1988 I took out an Abbey Life Personal Retirement Plan linked to a mortgage. In 1993 I switched from monthly to annual contributions. In 1997 I stopped making further contributions.

I do not believe in contacting claims management companies. However I saw an advert for such a company recently claiming that holders of Abbey Life Pension Mortgage policies should contact them as they should be able to claim compensation on their behalf.

I am curious why they are suggesting that my policy was 'mis-sold'. Any thoughts?

Marcon

Googling on Abby Life Pension Mortgage gets the answer: https://www.independent.co.uk/news/business/news/abbey-life-hit-with-record-1m-fine-134782.html

dunstonh

However I saw an advert for such a company recently claiming that holders of Abbey Life Pension Mortgage policies should contact them as they should be able to claim compensation on their behalf.

You will probably find that the same company has mirror pages for most insurance companies.

I am curious why they are suggesting that my policy was 'mis-sold'. Any thoughts?

it probably was. Pension mortgages were a good idea on paper but required continuous monitoring and Abbey Life were not set up for that. Plus, it lacked flexibility.

However, there are some issues if you are looking to put a complaint in now.

1) sold in 1993 but abandoned in 1997. You have 6 years from sale and 3 years from being reasonably aware of an issue to raise a complaint (both rules need to be met). 1999 was the 6 year point and 2000 was the 3 year point. They can bar your complaint if they want to.
2) What did you do to your mortgage in 1997? (as you stopped the pensions)? - delinking the investment product with the interest only mortgage like that would mean that even if they considered your complaint and even if they then upheld it, they only have to calculate the difference you would have been against a repayment mortgage in 1997 (repayment mortgage vs interest only minus pension value).

buffman

dunstonh wrote: »

sold in 1993 but abandoned in 1997.

I still have the funds with Abbey Life even though I did not make further contributions. It is expensive to remove the funds until my selective retirement date and the funds that I am invested in are anything but stellar!

So any mis-selling complaint is a waste of time?

dunstonh

So any mis-selling complaint is a waste of time?

Can't prejudge anything based on so little information. Plus, large firms are very scattergun in outcomes. Often upholding complaints that should be rejected and rejecting ones that should be upheld.

What we do know is that because you ceased in 1997, they can apply the timebar if they wish.

We also know that you are only talking about a period of just 4 years. A repayment mortgage barely reduces in a 4 year period. Unless you are talking about a very big mortgage back then, the amounts are going to be very small.

If you were still paying into the pension now to cover an existing mortgage now, then it would be very different and a complaint that would likely win. As you stopped over 20 years ago, it's much much weaker (for the reasons above)