The

Just Mediation

Practice

Case Study - Endowment Mortgage Dispute

Assisted Negotiation: Endowment Mortgage Dispute case study




  1. Financial disputes concerning ‘Endowment mortgage’ advice. The claimant took advice from a registered financial advisor back in 1980. The advice given to the claimant was poor.
  2. The matter was complicated by the fact that the defendants financial advice company, had ceased trading some 20 years earlier. The matter was also further complicated by the fact that the claimant had received many communications concerning the shortfall in the value of his policy upon maturity, but had done little to address the matter.

  3. A claim was lodged with the FSCS to establish whether there was any liability on the part of the advisor, and if so, whether this would be covered under the Financial Services Compensation Scheme.
  4. Many years had passed since the claimant was first made aware of the shortfall and the claimant making a claim to the FSCS. Upon submission of the appropriate forms, and the involvement of a commercial mediator the FSCS made an offer of £2,156 in settlement of the claim. The claimant accepted the offer, they could clearly see getting £2,156 was better than risking this matter at trial as there was some question as to time limitation (or lack of). The FSCS had calculated the premiums that had actually been paid and compared this to what would have been paid had the advisor offered the usual repayment mortgage over a 25 year period. 


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Facts & figures

  • The assisted negotiation took just 3 hours compared to the 25 years this dispute had already gone on.
  • The assisted negotiation cost each party Nil, as the mediator carried out the negotiation on a pro-bono basis.  A good result for both parties when compared to the thousands the they would have spent on legal fees had they continued with Court action.