Endowment Claims: a legal loophole

More than 600,000 endowment mortgage holders have successfully claimed compensation on the basis that they were mis-sold the stock market-linked endowment policy used as the repayment vehicle for this type of interest-only mortgage.

Unfortunately, many more have missed the Financial Conduct Authority’s three-year deadline for lodging a claim.

(To find out more about this, read Am I too late for endowment compensation?)

In most cases, that’s the end of the story no matter how good the claim, if you’re too late, nothing can be done.

Unless, of course, your policy was bought from a Scottish provider

 

A Ray of Hope

If your endowment provider is headquartered in Scotland and several of the big players are you may still be in with a chance even if your deadline has passed.

This is because under Scots law, the deadline for claiming there’s a problem with any kind of contract is five years, not three.

And it doesn’t matter whether you live in Scotland, England or anywhere else the law holds good because it relates to where the provider is based.

So, if yours is north of the Border, claim now.

Of course, there’s no guarantee you will succeed. Even if you have a good case, your provider may turn you down in the hope that you’ll simply give up and go away.

If this happens, consider getting legal advice and taking action through the Scottish courts.

If you win your case and your provider is forced to compensate you, it could be well worth the time and trouble.

 

Read More about Endowment Mortgages