LEGAL AND gENERAL- ENDOWMENT MIS-SELLING

Fairwinds · 7 April 2006 at 5:32PM

I tried to tell them that it had been used against a mortgage for all bar the first 4, of its 18 years. No Joy. Dunstonh is right, that is virtually exactly the position they took.

My wife was persuaded to take out the policy as a savings policy - no dependents at the time, no need for life insurance.

I worked out that if I took the offer, I would have to pay an extra £40 a month and if I didn't the projected shortfall would require an extra £40 a month.

That was about a year ago, maybe nearer 2 thinking back.

It has never been officially concluded, just left in limbo.

vinno65 · 7 April 2006 at 6:05PM

Gordon, have you taken your case to the FOS? Also who advised you to use the endowment against your mortgage when you took it out?
regards Vinno

Fairwinds · 7 April 2006 at 8:46PM

We did ask the FSO, who were really worse than useless. They weren't interested in what compensation they had offered - and just kept saying if the used the appropriate guidelines there was nothing they could do. They didn't do any checks as far as I know.

Not sure who advised to use the policy against the house purchase, as it was my wifes policy (before we knew each other) and also her house purchase. (again on her own).
I'll try and find out when she comes in

dreamylittledream · 8 April 2006 at 12:02AM

dunstonh wrote:

To be honest I don't know. Hopefully DOTW will be around to clarify soon. However, pre-sales, from what I have seen, do seem to end with them paying a refund of premiums and voiding the policy.

You're correct - if the policy was never used to support a mortgage the only offer will be a full refund of premiums piad plus interest minus the current surrender value.

L&G do insist on cancellation in these cases, although not all life companies do. I suspect FOS would probably side with L&G in this case as the policy is being voided to all intents and purposes although I have yet to see a test case...

However in Gordon's case the calculation should be a refund of premiums up to the point the policy was used, and then a standard comparison calculation thereafter. As such surrender should not be a condition of the offer. The Peal have recently had their knuckles rapped for this.

Gordon - you need to go back to the adjudicator in question and state you do not want to surrender the policy and if neccesary appeal the case to the full Ombudsman.

caleb2003 · 8 April 2006 at 9:56AM

I got a 'complaint not upheld' letter back after only 2 weeks today.

My which complaint letter complained about 1.not being advised that there was a risk it wouldn't reach the full amount, of course they said theres no evidence of this.
2.The sale didnt follow the rules as the fees and charges weren't explained
3. the advisor said the policy would def pay mtge and pay a lump sum.
and I also complained that i was never told by the IFA that he was exclusive to L and G.

For all these point they point to me signing the original app letter and they made an illustraion of different payback upin diff % return.

Anything I can do?

Fairwinds · 8 April 2006 at 2:09PM

dreamylittledream wrote:

The Peal have recently had their knuckles rapped for this.

Who or what are The Peal - so I can sound like I know what I'm talking about?

dunstonh · 8 April 2006 at 2:37PM

GordonD wrote:

Who or what are The Peal - so I can sound like I know what I'm talking about?

I would guess "Pearl Group"

defender_of_the_weak · 9 April 2006 at 7:36AM

Gordon

Unless the policy was originally sold with the intent of using it alongside a mortgage then the original L & G offer will stand with the policy being voided.

Caleb

The next step is to take the matter to the Ombudsman, and drop a line to which explaining that their random letter generator is rubbish.

Again, this reads like L & G standard paragraphs. Our initial uphold rate against L & G is 70% but on referral to the Ombudsman this rises to the surprising figure of 100%, so unless I have some compromising photos of the chief exec which I don't, how can these figures be explianed. The reviews are worked out on a quota basis IMHO so 30% of people are turned down regardless of the quality of their case

caleb2003 · 11 April 2006 at 8:06AM

defender_of_the_weak wrote:

Caleb

The next step is to take the matter to the Ombudsman, and drop a line to which explaining that their random letter generator is rubbish.

Again, this reads like L & G standard paragraphs. Our initial uphold rate against L & G is 70% but on referral to the Ombudsman this rises to the surprising figure of 100%, so unless I have some compromising photos of the chief exec which I don't, how can these figures be explianed. The reviews are worked out on a quota basis IMHO so 30% of people are turned down regardless of the quality of their case

Thanks for the reply, are there any standard letters or wording advice to send such letters to the ombudsman, obviously I don't want to mess this up as I'lll only get one chance.

If anyone has a copy of previous successful communication with them I'd be greatful to see it.

Thanks for any info.

caleb2003 · 13 September 2006 at 8:25AM

I did as suggested on this thread and complained to the ombudsman who has now made the decision that I was sold the wrong product for my needs and should recieve compensation to bring me in line with what I would have received had I taken out a repayment mortgage. Result!

Now i'm waiting on L + G to finalise the actual amount they will offer.

Thanks for all the advice.

LEGAL AND gENERAL- ENDOWMENT MIS-SELLING

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