LEGAL AND gENERAL- ENDOWMENT MIS-SELLING

Has anyone had any success with Legal and General and if so how long did you wait?
I applied about 6 weeks ago , have had a letter stating they are still working on it , and that I will hear again within the next 4 weeks.Just wondered how likely I am to be successful( It was in 1993 for £20,100 by a Legal and General tied agent who said 'you already have one endowment, you're best just getting another one!')
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  • silvercar
    silvercar Posts: 46,861
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    I had the "you will hear within 4 weeks" letter from them and heard two days later.

    They found in my favour, accepted that the policy had been missold but calculated that I would not have been in a better position if I had had a repayment mortgage so wasn't entitled to any compensation.
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  • jon2432
    jon2432 Posts: 177 Forumite
    I claimed for a miselling in 2000. They said I had no case to answer. Last week I had a letter from them saying they agreed with my claim and offered me compensation. Not bad 6 years later.
  • mintymoneysaver
    mintymoneysaver Posts: 3,527
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    I had a phone call from them yesterday querying a date on my form, so they are definitely looking at it now.
    Any other success or failure stories?
  • littlereddevil
    littlereddevil Posts: 4,752 Forumite
    i had a letter saying I could have a potential loss of £25,000 so claimed and after about 2 years got nothing.
    I am now about to cash the policy in just awaiting a life assurance policy to be up and running.
    Hope you have better luck
    travelover
  • Doesn't sound too hopeful so far!
  • Fairwinds
    Fairwinds Posts: 774
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    Our claim was upheld, however when it was bought, it wasn't as part of a mortgage, but as a savings plan. I used this as part of the argument for mis-selling.

    As I said the mis-selling claim was upheld, but they insist that the policy must be cancelled as part of the compensation. As the policy is now used against a mortgage, I am not keen to do this. I feel I would be compounding our losses. The compenstaion offered was about £1000 more than the value of the policy at the time.

    So it has just been left in limbo - they say we must close the policy, we say we don't want to be forced to do that.
  • vinno65
    vinno65 Posts: 290 Forumite
    GordonD wrote:
    Our claim was upheld, however when it was bought, it wasn't as part of a mortgage, but as a savings plan. I used this as part of the argument for mis-selling.

    As I said the mis-selling claim was upheld, but they insist that the policy must be cancelled as part of the compensation. As the policy is now used against a mortgage, I am not keen to do this. I feel I would be componding our losses. The compenstaion offered was about £1000 more than the value of the policy at the time.

    So it has just been left in limbo - they say we must close the policy, we say we don't want to be forced to do that.

    Gordon
    You do not have to surrender the policy if you do not want to. If they refuse to redress you threaten them with the FOS. I do not know what firms will do in the future however if people claim redress then keep a policy to maturity that may pay out the full amount. In this case would the firm be entitled to their money back? It's only fair don't you agree.
    The purpose of redress is to put you in a position you would have been had you taken out a repayment mortgage so would not the surrender value plus the redress do this for you?
    regards Vinno
  • dunstonh
    dunstonh Posts: 116,027
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    In Gordon's case, I think he will be forced to surrender it. The complaint would be upheld on the basis that it should never have been sold in the first place. Pre-sold endowments usually result in upheld status and the compensation is usually repayment of premiums plus interest. That forces the policy to be voided.

    It is different to a endowment vs repayment basis.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • vinno65
    vinno65 Posts: 290 Forumite
    Hi Dunstonh,
    But if he is now using the endowment as a mortgage vehicle I presume on the advice of someone, shouldn't this be taken into consideration? Otherwise the years of interest only payments on his mortgage will count for nothing hardly fair!
    regards Vinno
  • dunstonh
    dunstonh Posts: 116,027
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    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.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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