skip tocontent

information for businesses covered by the ombudsman service

This section answers a number of frequently-asked questions (FAQs) about:

handling mortgage endowment complaints

windfall payments

in calculating redress for a mis-sold mortgage endowment policy, can I deduct a windfall payment that the customer has received or is due to receive?

No. The courts decided in the case of Taber v Needler Financial Services Ltd that windfall benefits should not be taken into account, when calculating redress involving a policy issued by a firm that had subsequently de-mutualised.

The court took the view that any windfall benefit received was not a consequence of poor advice given in relation to the policy. The benefit arose as a result of a separate act - the decision to demutualise taken by the board of the company that issued the policy. The court said the benefits from that separate act could not be set off against losses arising from poor advice.

See the FCA's guidance at DISP Appendix 1 for further details.