Endowment Null and Void since year 11. . found out 14 years later. 22 May at 7:28PM in Mortgages & Endowments 6 replies 410 views

GE0RDIE

My partner was looking forward to making the last payment on her mortgage after 25 years. After being shoved from pillar to post by lender and endowment company, it seems the endowment was declared null and void 14 years ago due to two missed payments. She can't remember if and why she missed payments, but apart from that has been paying religiously for 25 years. Now the lender wants their money, she has nothing! How is this possible?
She's at her wits end (as am I). Where has all the money gone? Doesn't the lender have an obligation to ensure that there is a means of paying the debt? How can we find out where all the money has gone?
The big question is, who can we contact for help? Some Ombudsman?

dunstonh

She can't remember if and why she missed payments, but apart from that has been paying religiously for 25 years. 

That is a contradiction.   If she "has been paying religiously for 25 years" into the endowment then it would still exist.   The direct debit to the mortgage covers the interest only and the endowment direct debit goes to the endowment.

How is this possible?

It sounds like the direct debit bounced 14 years ago and she failed to pay the missing premiums and it was either made paid up or surrendered at the time.    

Where has all the money gone?

What does the annual statement from the endowment policy say?   If there hasn't been one and there are no monthly payments to the endowment policy then there is no endowment policy inforce.

The insurer will able to clarify what happened with any accrued value 14 years ago.

Doesn't the lender have an obligation to ensure that there is a means of paying the debt?

No. The borrower is the one responsible for maintaining the repayment vehicle.

The big question is, who can we contact for help? Some Ombudsman?

There doesn't appear to be any wrongdoing at the moment.   

So, the first thing to do is find out from the insurer what happened to the value that was accrued at the time.  it will not have been voided.    Voiding a policy results in all premiums paid to date being refunded.   It would either be paid up (so value still exists - but then you would be getting a statement each year) or surrendered at the time (value returned).

GE0RDIE

She has been making payments on the endowment for 25 years, she has bank statements that show this. The interest to
the lender is a separate payment. She hasn't received yearly statements from the endowment company. 
If the endowment was made up or surrendered, wouldn't the payments stop, or at least the company would say 'you need to stop making payments'? 
The endowment appears to have been passed to another company, or the company has changed it's name, maybe twice. She's trying to find out contact details. 

davidmcn

Has she ever had mail from the endowment provider? Had she moved house and not kept them advised?

How were payments made - direct debit or standing order? 

Old_Lifer

If she  is still paying premiums all she has to do is look at a recent bank statement.  The  entry for the direct debit will show  the  name of the organisation to which she is paying premiums.   If you tell us this, someone on the Forum will probably be able to give you current contact details.

The premiums she has paid for the last 25 years have not vanished.

As  dunstonh says,  she sould have been receiving  annual statements.

Old_Lifer

On the  other hand..................re-reading the  original post may  perhaps suggest that she has  already  been  in touch with  the  endowment provider and  has been told that the policy terminated 14 years ago.     A likely scenario there, is that premiums fell into arrears and the policy was  then surrendered.   It may be that a further life policy was taken-out later  and it is the later policy which  is currently being paid.

All  speculation of course.   Too much contradiction to give a real opinion.

dunstonh

She has been making payments on the endowment for 25 years, she has bank statements that show this.

What does the insurance company say when they are told there are payments going out from the account still?