Should i accept the first offer

Fiorella

I have been offered a sum (20% of projected shortfall) as compensation for my endowment not maturing as it should, does anyone think its worth refusing the first offer to try and get more money. Has anybody tried this??

princess

There is quite a complicated calculation around how much compensation these 'mis selling' companies have to offer. They aren't allowed to just offer a figure off the top of their heads. I have to say I cant imagine any reputable company not sticking to this procedure. Chances are if you refuse this offer you wont be offered anymore, likewise if you complain to the ombudsman, they would only do the same calculation and offer you the same. The fact that the compensation doesnt come anywhere near the projected shortfall is not that unusual sadly and reflects the fact that endowment mortgages were generally cheaper than repayments in the first place and the life cover associated with it. I guess you have nothing to lose by refusing, but the offer is unlikely to be improved and you'll end up waiting longer for what your entitled to. This is about much the same..

http://forums.moneysavingexpert.com/showthread.html?t=53160