Endowment Claim

I think this is usual. Sis asked me if she should pay 30%. I told her 70% of something is more than 100% of nothing.

What do you mean by settlement value. Is that to cash in early? If it's a 25 year policy the sum seem pretty reasonable, the growth mostly comes in the final years. What is the projected value?

tim

Tim. It is a 'low cost' endowment to cover a 32,950 mortgage, started 28/02/02 Received a policy statement today. Sum assured is 11,698 Bonuses to date are 5,536

I received a letter from NU about a year ago stating that the returns would fall short of the mortgage amount. I think it stated that the predicted returns would be less than 25000.

Arthur

do you mean 92?

I'm no expert on this but:

ISTM that this is the shortfall, about 8K.

And if, repeat if, there was misselling this is the amount that has to be made up. And given that there is still 11 years of growth left, a claim today would probably net 3-4K.

29% of that, now doesn't seem like quite such a lot of money for the amount of effort involved, does it?

BICBW with my calcs.

Perhaps someone who does this for a living can work out a better figure.

tim

9100.

I took out the mortgage with National & Provincial which was gobbled up by Abbey. The endowment policy started life as Guardian RE, then someone else and now Norwich Life. So, if you know a claim chaser that you know has successfully manouvered this type of terrain I'd be glad to take your advice..

Thank you.

Arthur

I don't undertsand why you need a claims chaser. Either you were missold the policy or you weren't. You were missold it if you were not told that there was any risk of it not meeting the mortgage amount. Just because it might lose you money does not of itself provide a reason for a complaint if you knew that there was a risk here.

If you think you were missold it, write to the seller of the thing and say so. They have to work out the compensation according to the regulator's rules.

Rob Graham

I didn't know about the 'regulator's rules' so perhaps I will try that out.

Thanks.

Arthur

I don't think the claim companies would do much more than take details from you and use these to fill in Abbey's standard claim form. Paying someone

1k to fill in a form on my behalf (perhaps 20 minutes of clerical time) sounds like quite a lot to me!

One imagines that they know better ways to answer the questions than you could do for yourself. A bit like having your accountant reply to a letter from the IR, sorry HMRC.

BICMW

tim

Oops, Someone is bound to ask if I don't correct it:

BICBW

In message , "tim (in sweden)" writes

It isnt calculated that way.

The correct way is to compare how much you would have paid off by today on a repayment if you had taken one form the outset with todays surrender value of the policy. This is then adjusted by the difference in the total monthly payments made to date with the repayment mortgage and with an interest only mortgage with the endowment premium. An allowance is then made for the supposed cost of Decreasing Term Assurance on the repayment mortgage. You then have two figures to compare and if you are worse off with the endowment then you get the difference (assuming it was a genuine mis-selling case that is)

To perform this calculation accurately the intermediary needs to know all the different mortgage deals and interest rates you have been on since the outset which most people dont know. In that case the company must use a default interest rate which is the Halifax Base Rate. Most companies use the same piece of software as the FOS which is called 'mortgage fundamentals' AIUI.

In message , "tim (in sweden)" writes

No, all they do is send you their own form which has the same questions on, and then they copy them onto the other forms for you.

I see what you mean but an accountant usually turns primitive records into accounts, which isnt necessary here.

The only bit of added value any of these companies can offer is to advise you that if you dont know the answer to any of the questions asked you can quite safely put 'cant remember - have thrown the records away' and it wont effect your claim at all.

Substitute 'should work out' for 'have to work out' :-)

Jeff