endowment mortgage complaints : Time Running Out

2007-03-08 10:33:40

( Financial )



If you apply for mortgage you might take out an equity mortgage or an endowment mortgage. If you have been mis-sold your endowment mortgage, time is running out for you to complain.

Do you believe you have been mis-sold your mortgage endowment? Don’t hesitate to make endowment mortgage complaints at the first opportunity.

The company who sold you the endowment mortgage now has a limited time frame from the time when you first became aware of the problem in which to accept endowment mortgage complaints.

After a few years you no longer have a right to ask them to rectify your problem even if you were originally mis-sold the endowment mortgage.

Most companies now impose this limit and there are only a few that still haven’t.

Ombudsmen services are already refusing a significant percentage of endowment mortgage complaints because the time-limit has expired.

If you bought an endowment mortgage policy from almost any bank, financial advisor, building society or life insurance company and you aren’t happy with the product, be aware that your window of opportunity to rectify the situation could be closing.

The time limit period usually starts from the time you wrote your first letter informing them that their endowment policy won’t be able to pay for your home loan – they didn’t carefully take into consideration the mortgage rate quote and you have no mortgage payment protection.

These time bar limits have come into effect in a period starting from the last few years and more recently companies have to give you have a year’s warning that your right to complain will soon expire.

You can’t complain simply because your endowment mortgage was a bad investment. You must prove that the endowment mortgage was not adequate to pay for your home loan when the company6 originally sold it to you.

What are considered valid grounds for an endowment mortgage complaint?
• There was life cover included and you were single when the policy was sold and didn’t need live cover.
• The performance of the endowment relies on the stock market and the company didn’t explain the risk to you.
• The endowment matures after your retirement and the company didn’t ask you if you would be in a position to carry on paying.
• You weren’t experienced with regards to the demands of a regular savings plan.
How to register an endowment mortgage complaint –
• Simply inform the company before the expiry of the time limit. Make sure you use registered post to avoid dispute.
• Don’t use a service that offers to help you get your money back. There is no alternative other than the detailed information you need to provide on the appropriate form.

Even if the company who sold you the endowment is out of business there is still a service scheme you can complain to if the company is declared to be in the wrong.


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