The company investigating my complaint about mis-selling says it needs to take my current financial situation into account to determine the compensation I get. Is that right?
Redress for upheld mortgage endowment complaints aims to put the complainant in the position they would have been in had the inappropriate advice not been given. It does not seek to penalise firms, or to award ‘damages’. On this basis, our rules and guidance (in the DISP Handbook) set out a standard approach to calculating redress. So, when assessing if you have suffered a loss, the firm should not only assess your relative capital shortfall or surplus, but also calculate the relative expense of the two repayment methods. If the monthly outgoings on your endowment mortgage are lower than an equivalent repayment mortgage, the firm may take account of such ‘savings’ in calculating redress. The rules under which firms may be able to take account of ‘savings’ are detailed in DISP App 1.2.7 to 1.2.15G. If the firm does so, it must first establish your financial resources and assess if you are of ‘sufficient means’, and that it is reasonable to assume that the savings have contributed to tho
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