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Endowment Null and Void since year 11. . found out 14 years later.



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?
Comments
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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).
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.4 -
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.0 -
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?0 -
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.1
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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.0
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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?
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.2 -
Sorry about the lack of response, and thanks for the interest.
This is now a fraud investigation, so I can't comment at the moment.4 -
GE0RDIE said:Sorry about the lack of response, and thanks for the interest.
This is now a fraud investigation, so I can't comment at the moment.1 -
GEORDIE has been kind enough to give us an update.Perhaps at some point in the future he will give us a futher update when it is both appropriate and proper to do so.1
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Sorry for lack of update. This is still ongoing and I have been advised not to discuss it.
I could however, ponder what would happen to an ex-husband who cashed in a policy that the wife had before she met him, and the implications for the company that could not have sufficient security in place to avoid this happening.
A tale of fraud and incompetence I would imagine.2
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