I am in the situation where I have had to make proviso for a very poorly performing endowment and change over to a full repayment mortgage. At present, my claim for compensation for being misadvised on my Norwich Union With Profits Policy is being upheld, and I am awaiting their decision. I now want to cash in the endowment (I have taken Financial Advice on this issue) and use it for my benefit & reduce the new Repayment mortgage. Where is the best place to sell this to, if I don`t want to take up the Surrender Value currently being offered by Norwich Union?
We've just received a second letter - a 'red alert' one about my endowment being over 18000 short. We didn't even realise it was a unit linked one rather than a 'normal' endowment until we tried to sell it, and were told we'd have difficulty selling on a unit linked one. It even finishes 5 years after my husband retires, but at the time of taking it out the advisor said that endowments generally perform extremely well and will probably have enough in the plan to pay off the mortgage when we retire.
I've been advised to complain to the Finance company that sold it to me. Can you let me know what to say in the letter to the finance company?
Have a look on the Financial Services Authority (FSA) website
formatting link
this will outline your options & where to go from there. Basically, if you want to raise a complaint, the first port of call is with thefirm who sold you the policy. They should send you the relevant form(s) to fill out (don`t be put off, its worth taking time to do this and you may be compensated, whatever you decide to do with the actual endowment itself) which lists the details of the policy, how much you expected to receive, and why you are making the complaint (ie not advised satisfactorily, led to believe it would pay the whole mortgage, with lump sum left over, never mind fall short by 18k, etc)and they then have up to 6 months to respond with a decision either way. If you do not have any decision or receive an unsatisfactory one, then you contact the FSA to register a further complaint with them, so that they may take up the case on your behalf.
Thats how I see it, anyway, and I am currently awaiting a decision on my complaint, which has so far been upheld by Norwich Union.The only thing I would point out is that Unitised With Profit endowments (such as mine) don`t sell well, so you may have to go with any surender value offered by your firm, rather than putting it out for general sale elsewhere as you won`t have any takers..Unless anybody knows otherwise, as most people seem to concur with this??
I'm about to go on tot the FSA site now. Over the last couple of days I've contacted a few firms regarding selling the policy. But as you've found, they're not interested in buying unit linked policies. Good luck with your compensation.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.