No help from the Financial Ombudsman

[the2nineteens]

Back in 1988, the backlash of the recession caused a massive reduction in the size of our family business, and my parents were advised to sell the family home and buy a smaller property. Moreover, to get an interest Only Mortgage in case of the liquidation of the company whereupon should they be left unemployed the total of their mortgage payments would be covered by the DSS as it was in those days. To do this a separate insurance policy ie like an endowment needed to be set up alongside the mortage to cover the balance of the money owed upon completion of the mortgage. The business did fold and as suggested, the DSS covered the mortage payments until such time that they moved the goal posts on mortgage interest, and now my parents, who are now both sick and claiming non guaranteed pension credit have to pay from what little money they do have to live on. This however is not my main gripe.

 

A financial adviser, who was known to the family and company was employed to find such an insurance policy. He was never suspected of any foul play as he had been in and around us and other friends and business colleagues for years. Unfortunately, the policy that he sold us falls almost 2 thirds short of the balance that will have to be paid in around 18 months time.

 

We have been in contact with the financial ombudsmen who say they cannot assist as they need evidence that the policy was mis-sold. The afore mentioned financial adviser needs to be contacted to clarify this they say however to all intense and purposes he was last seen heading in the direction of the Sahara Desert on the back of a camel !!

 

They are now left in a position where they cannot get legal aid any more for some mad reason that I cannot explain and also facing the possibility of eviction from their home in the near future as they will be in the position of owing a large chunk of money to their building society which they will not be able to pay.

 

They are both past retirement age so the likelihood of the society agreeing another mortgage with them is fairly remote so we are now at a loss as to what to do. All payments to the policy and the mortgage are paid up to date and their credit history is good if not excellent as they seem to manage what little money they do have rather well.

 

Any mortgage requires life insurance which will be impossible for them to gain as they both have medical conditions that would load any life policy beyond reasonable affordability.

 

A barrister has looked at the case and has said he cannot help, but I suspect that this is because he is obviously privy to their financial situation and has assumed that they will not be able to afford his fees, should the case go against them and there seems as mentioned to be no legal aid available.

 

Has anyone any ideas on how I can help them. I am a well educated man with lost of experience of life, dealing with people and so on however, I am an early retired IT consultant due to the need to look after my mentally handicapped son and not a lawyer!

 

I have the time but not the finances nor the know how in order to assist.