What If?

northeast_2

We started a new mortgage with national Provincial in 1988, As we had a previous endowment we used this along with a new endowment sold to us by N&P. (both Standard Life)
In 2003 the first endowment matured and we decided to use virtually the full amount including bonus of this policy to settle the mortgage.

In 2004 we started to receive warnings about the 2nd. endowment and now have received a red warning about its performance.

When we went to NP in 1988 for the new mortgage we were sold hevily on the benifits of endowments as a mortgage repayment method, they did not warn of any risks associated about possable short falls etc.

Do I have a case for mis-selling? and if so how would this policy be viewed as it is no longer required to pay off any mortgage arrears.

margaretclare

National & Provincial were taken over by Abbey (formerly Abbey National) some years ago. Then Abbey de-mutualised and became a bank. Not sure how all these changes will affect your situation.

Aunty Margaret

Bogof_Babe

This is quite uncanny, opening this board to ask my own question and seeing yours!

I have just been typing a letter to Standard Life asking for a cash-in payment for a small endowment in my husband's name (they wouldn't deal with me on the phone, and he is at work during their office hours). Like you, we no longer have a mortgage against this policy.

I was just going to print it off and get him to sign it, when I thought I remembered something about a possible buy-out or sell-out in the future, and obviously if this is on the cards we don't want to miss out on a windfall.

Personally I don't think I could cope with the hassle of claiming for mis-selling, so I can't advise you there I'm sorry.

However if you will forgive my sort of hijacking your thread (the answer may benefit both of us, if we get one), can anyone "in the know" advise whether I have dreamed it up about the possible windfall, or if it is likely to happen, then would it apply to endowment policy holders?

northeast_2

margaretclare wrote:

National & Provincial were taken over by Abbey (formerly Abbey National) some years ago. Then Abbey de-mutualised and became a bank. Not sure how all these changes will affect your situation.

Aunty Margaret

Thanks, after some chasing understand my claim is against Abbey and have now received their multi page claim form and given only 2 weeks to return it back to them.

dunstonh

When in 1988 did the endowment commence?

To be honest, morally, I dont think you should complain. You had an interest only mortgage backed by 2 endowments. One of those has performed sufficiently to repay the whole mortgage. The second endowment hasnt done as well (at least figures just after a stockmarket crash and not including terminal bonus and based on surrender value show that and we all know how inaccurate standard life projections are).

Had you been on repayment mortgage, you would still be paying your mortgage and you are financially better off because you had an endowment mortgage rather than a repayment mortgage. To claim a mis-sale after that would be an injustice.

Froggitt

dunstonh usually talks a lot of sense, but I disagree with him on this one. My view is that each policy was presumably promised to return a certain amount, and if policy two hasnt done so, then you have a valid misselling claim. However Im not sure where you stand as it is not backing up the mortgage......not sure if this will affect any judgement or amounts.

dunstonh

I did say morally rather than legally.

EdInvestor

Is the existing endowment with Standard Life?

If so, you should probably wait for the demutualisation planned for next year , which should produce a windfall, before surrendering the policy (if that's what you had in mind).

defender_of_the_weak

A couple of practical notes. Don't worry about the tiimescales and Abbey form they always ask for it back in short timescales because they know that some people will miss the date and think they have lost the chance to claim. Abbey will keep the file open for months but obiously the quicker you get the form back the better.

To comment briefly on morally as opposed to legally I am afraid that is the system. If he prudential recovers in the next ten years and all the policies from 1989 and after hit target will the people complaining now and receiving compensation give the money back?

The answer is that if the financial services industry actually treated customers fairly over this issue instead of trying to dissuade them from making valid claims/kicking out most claims unfairly (see Abbey) or offering some sort of future resolution format this problem would have a much smaller significance

Froggitt

dunstonh wrote:

I did say morally rather than legally.

I know......but IMHO, theres nothing wrong morally in trying to screw as much out of someone who has previously tried to screw you.