Missold Equity Release - Help needed!

TinPanAlleycat

My mum recently passed away and we discovered that she took out ER in 2004. The debt is now approaching 400k and we have 18 months to repay. Looking through my mother's documents, there is nothing with a signature to prove that the ER contract was signed off correctly. There is no deed, no SHIP certificate; nothing to prove the solicitor did their job correctly and explained to my mother exactly what she was getting into. Neither the conveyancing solicitors nor the lenders have any signed documents other than the initial application. I would like the Financial Ombudsman to investigate, but obviously this isn't going to happen overnight - I'm guessing the average time is 18 months but perhaps someone could enlighten me on this. My dilemma is the compound interest accruing during this time. Can I legitimately ask the lenders to freeze it during the time that this matter is investigated? I have discussed the charge with advisors recommended to me by the Equity Release Council and they are in agreement that there are some significant irregularities that warrant an inspection by the Ombudsman as a matter of urgency. 
To me this is a clear case of mis-selling but my main concern is how to freeze the interest for now.  
Thanks in advance for any advice on how best to obtain this.

tacpot12

I'm not sure it is worth worrying about feezing the interest. If the ultimate decision is that it was missold, they can unwind the interest as far as they are ordered to. If the decision is that that there was no misselling, then the interest will be payable. 

I think you should be focusing on getting this in front of the Ombudsman. No harm in mentioning the Equity Release Council's view that the Ombusman should look into it as a matter of urgency. 

user1977

The Mortgages board might be a better place for advice than here.

Jude57

TinPanAlleycat said:

My mum recently passed away and we discovered that she took out ER in 2004. The debt is now approaching 400k and we have 18 months to repay. Looking through my mother's documents, there is nothing with a signature to prove that the ER contract was signed off correctly. There is no deed, no SHIP certificate; nothing to prove the solicitor did their job correctly and explained to my mother exactly what she was getting into. Neither the conveyancing solicitors nor the lenders have any signed documents other than the initial application. I would like the Financial Ombudsman to investigate, but obviously this isn't going to happen overnight - I'm guessing the average time is 18 months but perhaps someone could enlighten me on this. My dilemma is the compound interest accruing during this time. Can I legitimately ask the lenders to freeze it during the time that this matter is investigated? I have discussed the charge with advisors recommended to me by the Equity Release Council and they are in agreement that there are some significant irregularities that warrant an inspection by the Ombudsman as a matter of urgency. 
To me this is a clear case of mis-selling but my main concern is how to freeze the interest for now.  
Thanks in advance for any advice on how best to obtain this.

I'd say your first step has to be a written complaint to the Equity Release company, setting out your concerns. The Ombudsman (any Ombudsman) won't even look at your complaint until the company have been given a chance to rectify any anomalies or to otherwise deal satisfactorily with the complaint. There are strict timescales for responding to complaints, all of which should be set out in the company's Complaints Procedure which should be available on their website. If it isn't, ring them and request a hard copy by post. I'd be asking the company to suspend interest and stop the repayment 'clock' while your complaint is investigated. Also, bear in mind that it's your late mother's estate that's liable for repayment, not the executors of her will, nor the beneficiaries but the ER is a liability of the estate and must be settled one way or another before the estate is distributed.

I have to ask, though; what happened to the money your mother received? And can you prove that, 20 years ago, your mother was incapable of understanding that the money would be repayable from her estate? 

Hoenir

Jude57 said:

TinPanAlleycat said:

My mum recently passed away and we discovered that she took out ER in 2004. The debt is now approaching 400k and we have 18 months to repay. Looking through my mother's documents, there is nothing with a signature to prove that the ER contract was signed off correctly. There is no deed, no SHIP certificate; nothing to prove the solicitor did their job correctly and explained to my mother exactly what she was getting into. Neither the conveyancing solicitors nor the lenders have any signed documents other than the initial application. I would like the Financial Ombudsman to investigate, but obviously this isn't going to happen overnight - I'm guessing the average time is 18 months but perhaps someone could enlighten me on this. My dilemma is the compound interest accruing during this time. Can I legitimately ask the lenders to freeze it during the time that this matter is investigated? I have discussed the charge with advisors recommended to me by the Equity Release Council and they are in agreement that there are some significant irregularities that warrant an inspection by the Ombudsman as a matter of urgency. 
To me this is a clear case of mis-selling but my main concern is how to freeze the interest for now.  
Thanks in advance for any advice on how best to obtain this.

I have to ask, though; what happened to the money your mother received? And can you prove that, 20 years ago, your mother was incapable of understanding that the money would be repayable from her estate? 

Those are the challenges that are faced in proving anything. Simplying claiming "mis-selling" won't be grounds to overturn a contractual arrangement. Otherwise every child that later finds out their parents had used ER (without informing them) would follow the same track. There's no grounds for freezing the interest even temporarily. Will simply accumulate until the property is sold. 

TinPanAlleycat

Thanks everyone for the advice. Just to clarify, I'm not trying to claim that my mother didn't understand the terms and conditions or that she was not entitled to do whatever she wanted with her own money. My concern is that protocol was not followed and the mortgage never correctly signed off. It was the solicitor's job to make sure this was done and I'm not convinced that it was. When these sorts of sums are involved the administration should be 100% watertight 100% of the time. My mother used the modest amount she received for home improvements. However there are other factors concerning the terms and conditions that I am not going to go into on the forum that also provide serious grounds for concern, and I will make sure they are put before the Ombudsman. Wish me luck!!

Hoenir

TinPanAlleycat said:

It was the solicitor's job to make sure this was done and I'm not convinced that it was. 

Did your mother meet with the solicitor to discuss the matter in person? 

kingstreet

What is the Executor doing with the property which secured this loan?

Keep_pedalling

Presumably your mother enjoined the money that was released. Would you preferred her to live in poverty so that you could get a better inheritance?