Published in Debt Advice Features on Monday, November 27 2006 by Ideal Debt Solutions
Have you come to the end of your mortgage and realised your Endowment policy isn’t going to cover the outstanding debt? Upon reviewing your policy can you see that it has been mis-sold? Under new guidelines you may be entitled to put in a cliam for compensation.
You could be eligible for compensation if you have lost out financially due to bad advice you received when taking out your Endowment policy. You may also be eligible for compensation if this mis-sale has caused any serious inconvenience or distress. Companies who sell this type of policy are regulated by several laws and regulations, and they must conform to them. You may have a strong case if when you took out your endowment policy the agent assured you that it was guarenteed to pay off your mortgage, and at the end of your mortgage it hasn’t. If you were sold a policy that would continue into your retirement, but now retirement is upon you, you can’t afford your payments, and this wasn’t considered by the company who sold you the policy. If the company who sold you your endowment advised you to cash in an existing policy to take out another you may be entitled to claim. It is also frowned upon if you were sold life assurance/insurance that you didn’t need or if your mortgage finishes before your endowment policy does. You may also be entitled to compensation if you were not told your money would be invested in the stock market and therefore not guarenteed to pay off your mortgage, or if you weren’t advised about the penalty and charges from from selling or cashing in your policy early, or indeed any other fees involved with the policy.
For any complaints you should approach the company or broker that sold you your endowment policy, Click here for a guide about how to complain. If you don’t feel they have dealt with your complaint properly, you can contact the Financial Services Ombudsman.
The level of compensation does rest heavily on how much you have lost out financially all in all by taking this particular policy instead of a different product.