No shortfall warning by endowment company!

dbs

A friend of mine has just received a telephone call from Deryshire BS stating her endowment has matured and is £1300 short to pay off the mortgage.

She has not received any warnings from Norwich Union that the endowment would not repay the mortgage,if she had been warned earlier she would taken steps to rectify the shortfall.

Now she has no spare cash to pay off the outstanding £1300 so will have to pay off the debt by monthly instalments plus the extra intrest on the debt.

Can she complain about the no shortfall warning to get any extra intrest payments back which she now has to pay?

ReportInvestor

The amount is quite small [though not to your friend ], and may have only emerged in the last year, so there may have been no obligation on Norwich Union.

She could complain - if you don't ask, you don't get - and this sort of scenario is going to start cropping up with increasing frequency, so a letter to NU would perform a public service.

dbs

Thanks

Another friend has told me their endowment was going to be about £300 short of the target but ended up being £1700 short but because they had the money to pay it off they did not complain.

dunstonh

Did you friend notify NU of her change of address (over the years). Loads of endowments are still registered under old addresses so notifications are being supressed due to mail being returned.

Equally, endowments showing shortfalls before maturity are paying out surpluses. Standard Life being the most common company that does that.

She can complain if she has grounds to. Performance itself (or lack of) is not grounds for complaint on its own.

dbs

No she has not moved house and she is not complaining of the performance of the endowment simply NU never gave her any warning that the plan would not meet its target so she could put money aside for when policy matured.