Can I sell endowments and progress misselling claim

splewington

Hi all,

I have just started the ball rolling to claim misselling of two R&SA endowment policies i have. Irrespective of outcome I plan to sell them both anyway and change my mortgage to 100% repayment.

My question is hopefully a straightforward for someone out there in the know to answer; can I continue with my mis-selling claim if I sell my policies now or does my case become invalidated if I sell them?

Any advice is much appreiciated.

turbobob

You can sell them. If the complaint is upheld, redress will be "capped" at the date of sale. Potentially they could use the selling price of the endowment in the redress calculation, instead of the surrender value at the date of transfer. As you will have benefited from a higher value by selling it, this would potentially reduce the redress payable. You'd have to check with someone at the insurer whether they use the surrender value or the actual selling price in this situation.

splewington

Thank TB, much appreciated

EdInvestor

That's assuming you can actually sell them, of course.

https://www.apmm.org

splewington

I have offers on them for 10% above the surrender value. Maybe they know something I dont :huh:. Its all very confusing, both are on red alert have been for a few years now, bonuses are far less than I'm paying into them, hence my rationale for getting rid...

dunstonh

bonuses are far less than I'm paying into them, hence my rationale for getting rid...

Not saying you are wrong but that is not the full story. Annual bonuses are low and likely to remain low as most providers have transferred the returns to the the terminal bonus. The terminal bonus may not be as obvious on statements as the annual bonus. Plus, if yours is a conventional with profits endowment then some of your premiums go towards the guaranteed sum assured which you dont appear to have included in your judgement.

That said, most R&SA policies are pretty naff (unless unit linked) so you are probably right, albeit for the wrong reason.