Advice on offer of compensation

Geroid

Hi I came across this forum whilst searching the Internet for advice on the Mis-selling of endowments.In 1990 and 1992 i took out endowments with Norwhich Union for relatively small amounts for home improvements[young and clueless]and recieved a red letter a while back saying there would be a short fall.I used the complaint letter template to make a complaint about the policies about a month ago.Today i have recieved a letter from Norwhich Union offering me compensation in respect of both policies and i would appreciate anyones advice on wether or not it is a fair offer.I am posting Norwhich Unions calculations below

Premiums paid =£736.00
Plus taxable intrest=£458.84
Less tax =£91.77
Total =£1,103.07


Premiums paid =£1540.00
Plus taxable intrest =£775.98
Less tax =£155.20
Total =£2,160.79

These offers are dependant on the surrender of the policies and no admission of liability on the part of Norwhich Union i would appriciate anyones advice on this .Thanks.

dunstonh

We cant answer that. The compensation is normally paid to put you in the position you would be with a repayment mortgage. Without knowing those details, no-one can tell.

However, in your case, it appears that they have gone down the route of cancelling the plans and giving a refund of premiums plus interest. This suggests that it probably wasnt a mis-sale of endowment (vs repayment) but another reason. In which case, the offer is in line with industry standards.

FOSman

If you are unsure, take it to the FOS. They can check it and tell them to re-calculate it if its wrong.