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Response to LENDER DENIES CASHING-IN ENDOWEMENT POLICIES!!!

from denise (pendle@amun-ra.demon.co.uk)
You should check the wording on the mortgage agreement, it may be that in the event of having to convert the mortgage to a repayment from endowment because of arrears etc, they reserve the right to take the policy benefits. So you need to consult your paperwork.

With an endowment mortgage when a house is repossessed, the lender will usually cash in the policies to try and reduce the debt. But if the lender converted the mortgage to a repayment one prior to any repossession proceedings, it would appear on the face of it that they had no right to the policies.

If the lender did have the right to the endowment funds, then this should show on the statement of sale and shortfall which you should have been given. If they didn't have the right, then they have acted illegally and you would be able to take action against them.

Did you enclose a photocopy of the letter which you received from the insurance company? If not, write to DLA, enclosing a copy of the ins. co. letter and asking DLA what has happened to the money.

If they still come back and deny everything, see if you can get a copy of the cheque which was issued from the insurance company. Explain to them what has happened. When you get it, send a copy to DLA.

It you don't get anywhere with DLA, then say that you are not willing to co-operate further until the issue of the endowment funds are sorted out.

(posted 8716 days ago)

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