Think You Were Missold Your Endowment Complain Now!!!! [CLOSED]

kevin · 14 October 2005 at 9:27AM

On a slightly different tack. We brought our first house in 1994 and were offerered an endowment policy. We understood the risks BUT i believe we were mis-sold because we were sold 3 policies rather than 1. The advisor told us to buy 2 endowments for half the mortgage each in our individual names and a life policy for half the mortgage. His argument was that if we sepearted it would be easier (although we told him this was not a risk) and if one of us died the mortgage would still be paid off in full. Better still if we both died together in a terrible accident (!) the parents would get 1.5 times the mortgage to help with funeral costs.

In summary - the mortgage was £33k. We were sold 2 endowments for £16.5k each and life cover for a further £16.5k. Is this a case of mis-selling? Surely he did this purely to get 3 lots of commission? Have we paid more costs as a result?

dunstonh · 14 October 2005 at 10:01AM

kevin wrote:

On a slightly different tack. We brought our first house in 1994 and were offerered an endowment policy. We understood the risks BUT i believe we were mis-sold because we were sold 3 policies rather than 1. The advisor told us to buy 2 endowments for half the mortgage each in our individual names and a life policy for half the mortgage. His argument was that if we sepearted it would be easier (although we told him this was not a risk) and if one of us died the mortgage would still be paid off in full. Better still if we both died together in a terrible accident (!) the parents would get 1.5 times the mortgage to help with funeral costs.

In summary - the mortgage was £33k. We were sold 2 endowments for £16.5k each and life cover for a further £16.5k. Is this a case of mis-selling? Surely he did this purely to get 3 lots of commission? Have we paid more costs as a result?

As long as you were given the cost of the single joint life plan to compare against, I can't see that being a problem and don't see it as a complaint that could be upheld. If it was the only option presented, then you could argue the case as it would certainly be a couple of pounds more per month.

If you are saying it is a mis-sale then you have to look at what it does.

1 - Do the products recommended meet the required goals? Yes. - so no mis-sale on that point.
2 - Was there an alternative way of meeting those goals which could be considered as good or better? Yes. - So alternatives should be discussed and documented as to why they were not chosen.
3 - Were the alternatives discussed and documented? From what you say, Yes. In which case you had a choice. And you chose what you have now.

Hereford_Saver · 14 October 2005 at 10:49AM

We were sold an endowment in 1989. In 1999 we sold our house in the UK, paid off the loan from the proceeds, and moved abroad. We continued to pay the endowment however until 2003, when we cashed it in to provide a deposit on a house purchase. It yielded £2,000 LESS than we had put in it over 14 years, never mind not growing as expected. However, I wasn't aware of the mis-selling compensation. Can I still make a claim even though I have cashed the policy?

shokadelika · 14 October 2005 at 7:46PM

Comlained about Abbey National who sold two policies to Ombudsman after THREE YEARS finally recieved compensation this boils down to the amount you would have been better off if you had a repayment mortgage not the amount of your shortfall!,you are allowed to surrender the policy,make it "paid up" ie frozen or auction it.After everything considered with 8 years left to go have decided to keep policies going as now it both policies are actually cheap life insurance (older!) compared to term assurance policies.If you were single and had no dependants you will win also if you were not shown a projection at the time or informed that there would be a shortfall ther has to be records of this request them.Final note if you have an older policy just why are all these auction brokers clammouring to buy them if they are worth nothing!.

shokadelika · 14 October 2005 at 7:47PM

Hereford_Saver wrote:

We were sold an endowment in 1989. In 1999 we sold our house in the UK, paid off the loan from the proceeds, and moved abroad. We continued to pay the endowment however until 2003, when we cashed it in to provide a deposit on a house purchase. It yielded £2,000 LESS than we had put in it over 14 years, never mind not growing as expected. However, I wasn't aware of the mis-selling compensation. Can I still make a claim even though I have cashed the policy?

I don't think so if my memory serves me well.

defender_of_the_weak · 14 October 2005 at 8:15PM

Yes you can still make a claim but any compensation will be based on the value when you stopped using the plans in connection with the mortgage

ScumBuster · 15 October 2005 at 4:37AM

If you were mis-sold an endowment pre-regulation (i.e. pre April 1988), there may still be hope for you. Don't give up just yet!!!

I was sold a Std Life endowment policy by Abbey National in 1987. Because it was pre-regulation and my case was weak, I did contact a couple of these companies that will seek compensation on your behalf, but both turned me down. One, however, did alert me to the fact that some companies had voluntarily agreed to allow the Ombudsman to investigate pre-regulation complaint, and further investigation revealed that Abbey is one of them. Alas, the Abbey told me to sod off. Whilst they admitted that it was their policy at that time not to inform customers that the endowment was not guaranteed to pay the full sum, there was absolutely no need for them to do so. So basically they were allowing pre-regulation complaints to be handled, but then rejecting my claim on the basis that it was pre-regulation!!!

It took the Ombudsman well over a year, but I heard earlier this year that Abbey had now agreed to settle. (I also heard around that time that the Ombudsman had imposed a heavy fine on Abbey for rejecting a large number of complaints that they should have upheld!)

They wouldn't pay me the shortfall as there was no proof that they'd told me that it was guaranteed to pay the full sum. However, they were instructed to effectively put me right. As it had only been assigned to a mortgage for the first 2 years, I wasn't expecting much. (I moved to a repayments due to a change of job and kept it on rather foolishly believing that it would be a good investment.) However, bingo! - I recently received a cheque from Abbey for over £3000.

So even if your policy was sold to you pre-April 1988, there may be hope. Don't give up. My persistence eventually paid off. :rotfl:

claireyn · 22 October 2005 at 11:23AM

I contacted standard life about a policy that was brought in 1990,
i have just received a letter today offering us £4.500.
Although this seems very nice there is still going to be a shortfall.

So in 10 years we are still going to have to get a top up og approx £25,000.

grahalex · 23 October 2005 at 1:31PM

I have now recieved the name of the company that set up my endowement with the Norwich Union in 1984.But the name isn't familiar to me and is no longer in existence.I thought it was through Leeds Perm. Can I still make a claim for misselling and who do I make a claim to.If I do claim can I keep the policy going to maturity?

Yoshii · 26 October 2005 at 9:49AM

my endowment was taken out in 1989 and i have been told that there will be a shortfall. when i contacted the company i was directed to the fsa who have sent me a dossier of forms to fill out such as savings at time of opening endowment ,other endownment policies etc.
have anyone else had these forms thru the fsa ?

any info appreciated

yoshii

Think You Were Missold Your Endowment Complain Now!!!! [CLOSED]

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