Pru letter does not invite remortgaging with Halifax

From Steve Colton

I read with interest the letter from Dave King of ASK Financial Management (Mortgage Strategy October 10) headlined ‘Endowment letter from Pru refers clients to Halifax’ and the related news article, ‘Pru accused of non- compliance’.

We believe these misrepresent our position in that they infer Prudential is ‘inviting’ policyholders to remortgage with the Halifax, which is not the case.

We are writing to those customers projected to be most at risk of an endowment shortfall, outlining the option of remortgaging and giving them details of how to find out more about it. As we mention in the letters we send, we cannot give financial advice but can discuss the options available to customers.

The solution we outline follows a pilot we ran with Halifax earlier in the year involving 15,000 of our customers. In our communications we point out that other lenders can offer the service as well. We also clearly provide details of how customers can contact a financial adviser if they wish.

We are confident we are acting within FSA regulations. We would also stress that Prudential has in no way gained financially from this agreement. Halifax and Prudential have shared the cost of the mailing and Prudential receives no commission for any loans advanced by Halifax as a result of the mailing.

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