Response to Encashment of an Endowment

As I understand it, if the policy was assigned to the lender then they can, and probably have already, cash/ed it in. You should be able to check whether it was assigned by looking at the terms & conditions in your endowment policy or mortgage terms & conditions.

Contacting the lender or the insurer will almost certainly provoke them into contacting you again. Though it's highly likely they'll be chasing you again soon anyway, they usually do after 6 years from date of sale. Not as they would have it to give breathing space, but to cut out any possibility of the borrower taking a case to court where the property has been undersold, for example.

In any event if this policy still exists (which I doubt) I think it would be wiser to use it to reach a negotiated settlement (after having put the lender to strict proof, of course).

Mark.

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