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information for businesses covered by the ombudsman service

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

handling mortgage endowment complaints

notional past savings

what if the loss calculation shows that the consumer has made notional past savings - as a result of having made lower payments to the mis-sold endowment mortgage?

Usually we would not expect the firm to deduct the notional past savings from the compensation payable. It is possible that we may agree in a particular case that notional savings should be deducted, if the "sufficient means test" - as set out in the FSA's guidance at DISP App 2.2.8 - is satisfied.

In order to justify taking notional savings into account, we would normally expect the firm to show that the past savings are still retained by the consumer as identifiable and realisable assets.

For more details see our special factsheet:

a quick guide to ... calculating redress for mis-sold mortgage endowments