Act now on mis-sold endowments: new article

Stumpy · 13 July 2006 at 11:00AM

dreamylittledream wrote:

Black Horse Agencies were sold to Bradford and Bingley and BBG accepted their liabilities for past sales.

If you policy was sold by Black Horse you should direct your complaint to Bradford and Bingley

Hmmm ... well I'm confused now. After several e-mails to FSCS they wrote back to us saying the this had been taken on by Lloyds (I'm not sure how it works, but I do know that Lloyds Bank owned Black Horse Agencies, so maybe the paperwork just got sent "up the chain"). Anyway, we sent the standard letter off, and got a reply with a questionnaire to fill in. I'm assuming that means that they have the paperwork and will be dealing with it? Anyway, that's the job for this weekend and then they reckon they have to have it all dealt with within 8 weeks.

Jorayner · 13 July 2006 at 7:21PM

Stumpy wrote:

Hmmm ... well I'm confused now. After several e-mails to FSCS they wrote back to us saying the this had been taken on by Lloyds (I'm not sure how it works, but I do know that Lloyds Bank owned Black Horse Agencies, so maybe the paperwork just got sent "up the chain"). Anyway, we sent the standard letter off, and got a reply with a questionnaire to fill in. I'm assuming that means that they have the paperwork and will be dealing with it? Anyway, that's the job for this weekend and then they reckon they have to have it all dealt with within 8 weeks.

I have been round the same loop after writing to Lloyds. My Standard Life policy missale is now being investigated by Branford and Bingley. Sounds promising as they telephoned this week asking for clarification of mortgage rates, so they are obviously doing calculations.

Jorayner · 13 July 2006 at 7:26PM

kingl wrote:

I would welcome some advice re the following:

1. 1989 we were first time buyers in our 20’s. We went to BS my future wife had been with since she was 4 for a mortgage. We didn’t shop around.
2. Told by BS we should have an endowment mortgage with Standard Life. No other products or companies were suggested. A meeting with SL rep was arranged a few days later.
3. Met with SL rep in an office at the BS. It appeared that the rep even had a dedicated office at the BS.
4. As in common with most the risks were never explained and we were told we would have a nest egg etc etc

We have no doubt that we were mis-sold and have made a claim. But we are being fobbed off as follows and wonder if any others have found themselves in a similar situation or have any advice.

1. Complained to Std Life first, but they said that our complaint was with the BS since they were the initial advisor.
2. Complained to the BS, but they produce files notes which they claim show our first meeting with them was after we met with the SL rep.
3. Complained to Std Life again, but they produce file notes which they claim the BS sold us the endowment plan.
4. Again and again, backwards and forwards. Each claiming it is the other.

We cannot face writing anymore, in the meantime our daughter has been treated for cancer, and we are ready to throw in the towel.

But perhaps just one more attempt? Any advice anyone?

You need to get Standard Life to get the full file out of archive. We had exactly the same - their system named an unknown advisor as the seller and the person to whom they were paying the commision, but when they pulled the full file it was clearly stamped with Stimpsons, Black horse agencies, which is who we said it was all along.

Keep on at them - there is a definative document that they have on microfiche which will answer it once and for all . The answer they have given you may not be the right one.

I will try and find the name of the person who eventually got to the bottom of it for us. He was very helpful.

Sorry to hear about your daughter.

vinno65 · 13 July 2006 at 7:30PM

kingl wrote:

I would welcome some advice re the following:

1. 1989 we were first time buyers in our 20’s. We went to BS my future wife had been with since she was 4 for a mortgage. We didn’t shop around.
2. Told by BS we should have an endowment mortgage with Standard Life. No other products or companies were suggested. A meeting with SL rep was arranged a few days later.
3. Met with SL rep in an office at the BS. It appeared that the rep even had a dedicated office at the BS.
4. As in common with most the risks were never explained and we were told we would have a nest egg etc etc

We have no doubt that we were mis-sold and have made a claim. But we are being fobbed off as follows and wonder if any others have found themselves in a similar situation or have any advice.

1. Complained to Std Life first, but they said that our complaint was with the BS since they were the initial advisor.
2. Complained to the BS, but they produce files notes which they claim show our first meeting with them was after we met with the SL rep.
3. Complained to Std Life again, but they produce file notes which they claim the BS sold us the endowment plan.
4. Again and again, backwards and forwards. Each claiming it is the other.

We cannot face writing anymore, in the meantime our daughter has been treated for cancer, and we are ready to throw in the towel.

But perhaps just one more attempt? Any advice anyone?

Hi Kingl,
why not write to the FOS? you could complain that neither side is admitting responsiblity for the sale and then let the FOS sort out who is.

regards Vinno

Stumpy · 14 July 2006 at 10:44AM

Jorayner wrote:

I have been round the same loop after writing to Lloyds. My Standard Life policy missale is now being investigated by Branford and Bingley. Sounds promising as they telephoned this week asking for clarification of mortgage rates, so they are obviously doing calculations.

Did Lloyds send you a questionnaire to fill in, or did they just refer you directly to Bradford & Bingley? I'll be mightily annoyed if I have to fill in this huge questionnaire, just to be bumped on to another firm!

johnnycab · 14 July 2006 at 11:44AM

I have had a Barclays Life endowment policy since 1993, for the sum of £42,000 - paying £62 per month. The policy has 12 years left before it matures, and I have been informed of the shortfall by Barclays Life. I have started reading all the threads and looking to send the lettter from Which Endowment Action, as I was most definitely mis-sold. I have also enquired about the surrender value of my policy - which was valued at £10,500 couple of days ago.

However, I am not sure of a few things, and have a few questions. I hope someone might be able to answer them for me.

1. I changed my mortgage from Barclays to RBS in 2002 - but continued to pay the premium on the endowment policy - do I still have a chance to appeal for compensation? If so, does the above affect my chances of getting any compensation?

2. I have looked at the FSA website on how to calculate the compensation i.e. Endowment vs Repayment. Although, I do not fully understand it, how does this work in my situation - where the mortgage is no longer with the original provider?

3. At the current rate there will still be a shortfall. However, is the current surrender value a good/reasonable offer?

I would be extremely grateful for any advice or pointers, on putting this claim together.

Thanks

mbeamethyst · 14 July 2006 at 1:15PM

I would appreciate feedback from users on the feeling of complaining about the misselling of an endowment that is actually still on track to pay the mortgage. The company have said that I don't have grounds to complain since I am not in shortfall, but I was of the opinion that the complaints being made were for how the policy was sold and not how it was performing - they are quick to point that out when a policy is seriously in shortfall. Would appreciate thoughts on whether we are wasting our time. Thanks

Art_2 · 14 July 2006 at 1:30PM

mbeamethyst wrote:

I would appreciate feedback from users on the feeling of complaining about the misselling of an endowment that is actually still on track to pay the mortgage. The company have said that I don't have grounds to complain since I am not in shortfall, but I was of the opinion that the complaints being made were for how the policy was sold and not how it was performing - they are quick to point that out when a policy is seriously in shortfall. Would appreciate thoughts on whether we are wasting our time. Thanks

I had a similar query some time ago.
My endowment is still on track to repay my mortgage but I asked if I had a case as the surplus was much less than I had been promised originally. I was told I didn't have a case as the endowment would repay the mortgage.

Regards,
Art.

dunstonh · 14 July 2006 at 1:58PM

I would appreciate feedback from users on the feeling of complaining about the misselling of an endowment that is actually still on track to pay the mortgage. The company have said that I don't have grounds to complain since I am not in shortfall, but I was of the opinion that the complaints being made were for how the policy was sold and not how it was performing - they are quick to point that out when a policy is seriously in shortfall. Would appreciate thoughts on whether we are wasting our time. Thanks

You can still complain. If the complaint is upheld, a calculation takes place to see how much you are out of pocket. A surplus endowment would not put you out of pocket so you wouldnt get a penny.

Indeed, if the complaint was pre-sale endowment, you could actually get less as they would cancel the endowment and return your premiums plus interest. That figure could be below the current value of the endowment.

mbeamethyst · 14 July 2006 at 2:34PM

Thanks for the update on this but it does in fact leave me more confused.

I have had a previous claim upheld and the compensation calculation did not take any account of a surplus or shortfall on the endowment. It took account of the value of the mortgage against a repayment mortgage and compared the outgoings for each. The shortfall/surplus amounts were not documented.

Also not sure how the endowment can be surrendered or cancelled without our agreement?

Act now on mis-sold endowments: new article

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