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Premium problem stops mortgage endowment plan

Bungle Busters comes to you courtesy of Legal & General for the second

week in succession as we take up the case of David Ellis, a trainee with

Chelmsford-based IFA TK Jones.

Ellis called BB after L&G consistently fouled up in accepting his premiums

for a recently set-up mortgage endowment plan.

Ellis bought the plan in February, with his first premium due in March,

only for L&G to fail to collect the payment, claiming there was “no

instruction held” with his bank.

Ellis&#39s fiancée, who works for his bank, checked the direct debit and

found that L&G had set it up wrongly.

He informed the L&G Countrywide Support team who confirmed the direct

debit was correct and that his premium had been taken.

This was still not the case but, after several more letters, he received

an assurance from L&G that it would make good the missed premiums but he

then received another letter saying his policy had become paid-up.

Ellis says: “We were forced to deal with L&G Countrywide team on the

promise of superior service despite being happy with the local branch. This

episode has only confirmed our fears and this could have been extremely

embarrassing if it had happened to one of our clients.”

L&G PR manager Peter Timberlake says: “He should be aware that we agreed

to pay his first two premiums and collect his premium from May. This was an

automated letter which was simply a crossover.”


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