Just thought I would ask question on something I was reading under the heading "What to do when lenders won`t cooperate" (a little ahead of myself at this stage, I know) but a few lines down there is a checklist which shows what the minimum is I should ask for.

Endowment: I signed up for an endowment mortgage. This was changed to a repayment type at my request, then back to an endowment type, again at my request (this should show up on the SARN when I receive it?) but one thing I never had was ... an endowment. They never told me to get one, or tried to sell me one, or even checked I had one later on in the mortgage. How would I go about asking for it?

-- Geordie (geordieno1@dsl.pipex.com), April 10, 2003

Answers

Geordie,

I'm afraid your logic defeats me there! What point is there in asking the lender to provide details of an endowment policy, if I understand you correctly, which you know doesn't exist?

Mark.

-- M Amos (idgroms@hotmail.com), April 10, 2003.

Yes, I can see where you`re coming from but I am merely quoting text from the site. Look below under sub-heading "Here is the minimum you should be asking for".

The lender will not co-operate

What happens next?

Assuming that you request the proof that we suggest you should ask for, the chances are that the lender will not play ball.

They may send you partial documentation to support their claim, or none.

Eventually they will probably refer your file to their solicitor or their own litigation department. Then you'll start to receive letters from their lawyer or litigation department instead. Like the lender's letters, these letters will threaten to take you to court unless you pay up, get on the phone or make a settlement offer. They usually give you seven days.

We know of one repossessee who has received 16 letters - each of which threatened to take him to court within seven days (from Dibb Lupton Alsop). At the time of writing, he has not received a summons.

Less often, lenders refer cases to debt collection agencies or threaten to send debt collectors around to deal with you.

Your challenge is to learn to live with these threats and to understand that they don't actually mean anything in themselves.

Simply reply to these letters the way you should have replied to the others: by politely requesting documentation to prove the lender's claim.

Here is the minimum you should be asking for:

a.. Copies of two valuations relating to sale of the repossessed property b.. MIG policy (if you had a MIG policy) c.. Terms and conditions of the MIG policy (if you had a MIG policy) d.. Copy of marketing material shown to me at the time you bought the MIG e.. Endowment policy (if you had an endowment) f.. Terms and conditions of the endowment policy (if you had a endowment) g.. Copy of marketing material shown to me at the time you bought the endowment h.. Mortgage deed i.. Terms and conditions of the actual mortgage you bought as applicable to the mortgage at the time you bought it j.. Copy of marketing material shown to me at the time I bought the mortgage k.. Money Judegement Order l.. Records and notes of all telephone conversations relating to the sale of the property after repossession m.. Copy of notification letter(s) of repossession sale. n.. Add a paragraph reserving the right to request and see any other documents as required when you have recieved all of this this material and assessed it.

-- Geordie (geordieno1@dsl.pipex.com), April 10, 2003.

Geordie,

It does say though "if you had an endowment", and as you didn't? Anyway, if it wasn't a 'genuine' question, let's forget it.

Mark.

-- M Amos (idgroms@hotmail.com), April 10, 2003.

It was a genuine question Mark, though in retrospect I should have asked it in another way. What I`m trying to say is, if the lender is selling you an endowment type mortgage, what steps are they obliged to follow or advice that they must give in guiding you in ensuring that an endowment is purchased? Like I said, I never did get one.

-- Geordie (geordieno1@dsl.pipex.com), April 10, 2003.

It sounds like you always had a straightforward repayment mortgage. You would have known if you had had an endowment mortgage as you would have been paying a montly amount towards it. This is what it appears like to me.

-- Chris (chris@anon.co.uk), April 11, 2003.

Geordie,

It could be as Chris says that you continued paying on a repayment basis, or alternatively the lender made a mistake and failed to check whether you had taken out an endowment policy. I think I would write and ask them what happened regarding your request to go back to an endowment mortgage and whether, in the end, they left it as a repayment mortgage. Then, once you know for sure, take it from there.

Mark.

-- M Amos (idgroms@hotmail.com), April 11, 2003.