Mis-sold endowment mortgage compensation

I am in the process of applying for compensation for an endowment mortgage which was mis-sold to me in 1988. The insurance co have sent me a form with various questions, it looks like a fishing excercise to me, I am deeply suspicious.

As I understand it, they first need to establish if I was mis-sold the policy. Next they need to calculate the difference between my position now and what it would have been if I had taken a different mortgage.

In 1998, I moved house and took on a joint flexible repayment mortgage with my wife (the endowment was just in my name, I was a single first time buyer when I took it on). I kept on the endowment policy, mainly because everyone at the time was advising people not to cash them in because of the terminal bonus.

How will this affect the calculation? Since it was a flexible loan and interest rates have been low, it is now virtually paid off (but with another 9 years to go on the endowment).

Do I even need to reveal details of the new mortgage? It is joint, and my wife has no relationship with the insurance co, do they even need to know the details?

Onto the fishing questions. Anyone know what tricks they try to play?

One says "to assess my overall financial position" they want to know about my current pension arrangements and tax band. Why??? What are they trying to pull?

They also ask about my salary, savings and *expenditure* for heaven's sake, at the time I took on the endowment. Again, what are they up to?

Any help or experiences would be very useful.

Dom

Reply to
Dominic
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Mis-selling depends on the advice you were given - the salesman should have asked you these questions when you were sold the endowment, so they now need to check the advice against your circumstances at the time.

Thom

Reply to
Thom

How do you know that as a fact? You know you were *sold* it, but on what facts do you base your assertion that it was *mis*-sold?

Sounds reasonable.

It shouldn't really. I reckon the assumptions made will be based on the difference between (a) the amount of the original 1988 loan minus the value of the endowment now, and (b) the amount of the original 1988 loan minus what would have been paid off it, had it been a repayment type, based on the same interest rate history as you actually had with your interest-only loan up to 1998 and your new lender's actual interest rates thereafter.

I think they simply need to know your actual interest rate history, so that they can work out how much of your original loan would have been paid down with a repayment mortgage. This will determine the size of the compensation, but will have no effect on whether you get it at all.

No idea. Sounds irrelevant. Ask them to justify it.

They need to make sure the salesman at the time correctly assessed your position, in order to determine whether the package recommended was suitable. The answers to these question won't affect the size of the compensation, but will help determine whether you get any at all.

Reply to
Ronald Raygun

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