Legal and General changes endowment mortgage claims policy

23 March 2006 / by None
Legal and General has this week announced, in a change from its previously stated policy, that it will impose time limits for endowment mortgage complaint claims.

The insurer had previously resisted the industry trend for imposing time bars, after which policy holders who have not submitted their complaints would lose any right to future compensation.

This leaves only Nationwide and Prudential as major endowment mortgage providers not limiting the time for complaints – and both of these companies continue to keep their policies under review.

The time bar rule means that holders have three years to complaint from their first receipt of a letter warning of a shortfall on their policy. Legal and General's new policy will give its 630,000 endowment mortgage holders six months to complain.

The deadline for affected policy holders with Standard Life and Scottish Widows expires at the end of May this year.

Explaining Legal and General's decision, Paul Timmins, director of customer resolutions, said: "We want to bring a conclusion to the matter - it is time for people to make up their minds."

To read more about mortgages, click here.


track© Adfero Ltd