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*PLEASE NOTE* This site is
for information purposes only - we are not accepting
any new cases from January 2007
Once you have proven that there were grounds for
complaint and that your case is successful - how will
the endowment compensation actually be calculated?
The Endowment redress method
The way compensation is usually worked out is to
compare the difference between the current state of the
endowment mortgage / investment and the position of a
repayment mortgage - had that option been taken up
instead.
To show whether or not you are worse off now
financially as a result of bad advice, the calculation
will take into account the capital that would have been
repaid on a repayment mortgage, compared with the actual
surrender value on your endowment policy plus any
difference in monthly outgoings.
This is rather complex and allows for some
flexibility.
In summary - you compare:
the mortgage interest and premiums you have actually
paid on your endowment mortgage,
and the current surrender value of your mortgage
endowment policy;
with the mortgage interest and capital repayments
you would have paid on an equivalent repayment mortgage,
and how much capital would have been paid off the
mortgage.
The precise calculation varies because of factors
such as whether life insurance was needed or whether the
endowment ran beyond any retirement date. No
compensation is due if you are deemed to be not worse
off based on the above criteria.
If your claim needs to be made against the Financial
Ombudsman Service then a similar method of calculation
is used. There are real case studies on the official FOS
site -
Financial Ombudsmans official site.
There are a few interesting sites below where you can
find out more about
endowment complaints in the UK:
Financial Ombudsmans official site
Consumer
information from the FSA
Building Societies
Association
Or read our additional pages here:
Grounds for complaint (more detail) -
Endowment claims for compensation -
News -
Specialist claims handlers -
Procedures -
Endowment compensation articles
We have a team of specialist Insolvency lawyers
providing
bankruptcy advice
compensation injury claims -
personal injury claims -
accident claims -
criminal injuries compensation -
Law Society of
England & Wales -
industrial injury -
legal news -
accident compensation -
dog bite claims -
manual handling regulations -
clinical negligence -
online legal advice -
dental claims - -
useful links -
claim for your child -
personal accidents -
FSA Consumer
guide
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