Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • mintymoneysaver
    • By mintymoneysaver 4th Apr 06, 12:53 PM
    • 3,461Posts
    • 17,752Thanks
    mintymoneysaver
    LEGAL AND gENERAL- ENDOWMENT MIS-SELLING
    • #1
    • 4th Apr 06, 12:53 PM
    LEGAL AND gENERAL- ENDOWMENT MIS-SELLING 4th Apr 06 at 12:53 PM
    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!')
    Debts May 2015/ Now
    Bank of Mum 800/ 750/700/2000
    Barclaycard 550/ 535/ 485/ 320/286.06 PAID OFF
    Halifax CC 9500// 9333/9183/9348/9492.50/9445


Page 1
  • silvercar
    • #2
    • 4th Apr 06, 1:24 PM
    • #2
    • 4th Apr 06, 1:24 PM
    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.
  • jon2432
    • #3
    • 4th Apr 06, 8:06 PM
    • #3
    • 4th Apr 06, 8:06 PM
    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
    • By mintymoneysaver 7th Apr 06, 7:42 AM
    • 3,461 Posts
    • 17,752 Thanks
    mintymoneysaver
    • #4
    • 7th Apr 06, 7:42 AM
    • #4
    • 7th Apr 06, 7:42 AM
    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?
    Debts May 2015/ Now
    Bank of Mum 800/ 750/700/2000
    Barclaycard 550/ 535/ 485/ 320/286.06 PAID OFF
    Halifax CC 9500// 9333/9183/9348/9492.50/9445


  • littlereddevil
    • #5
    • 7th Apr 06, 8:11 AM
    • #5
    • 7th Apr 06, 8:11 AM
    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
    • mintymoneysaver
    • By mintymoneysaver 7th Apr 06, 1:57 PM
    • 3,461 Posts
    • 17,752 Thanks
    mintymoneysaver
    • #6
    • 7th Apr 06, 1:57 PM
    • #6
    • 7th Apr 06, 1:57 PM
    Doesn't sound too hopeful so far!
    Debts May 2015/ Now
    Bank of Mum 800/ 750/700/2000
    Barclaycard 550/ 535/ 485/ 320/286.06 PAID OFF
    Halifax CC 9500// 9333/9183/9348/9492.50/9445


  • Fairwinds
    • #7
    • 7th Apr 06, 2:45 PM
    • #7
    • 7th Apr 06, 2:45 PM
    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.
    Last edited by Fairwinds; 07-04-2006 at 5:33 PM.
  • vinno65
    • #8
    • 7th Apr 06, 3:12 PM
    • #8
    • 7th Apr 06, 3:12 PM
    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.
    by GordonD
    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
    • #9
    • 7th Apr 06, 3:54 PM
    • #9
    • 7th Apr 06, 3:54 PM
    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 a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • vinno65
    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
    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 a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • Fairwinds
    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
    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
    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
    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.
    by dunstonh
    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.
    Last edited by dreamylittledream; 08-04-2006 at 12:06 AM.
  • caleb2003
    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
    The Peal have recently had their knuckles rapped for this.
    by dreamylittledream
    Who or what are The Peal - so I can sound like I know what I'm talking about?
  • dunstonh
    Who or what are The Peal - so I can sound like I know what I'm talking about?
    by GordonD
    I would guess "Pearl Group"
    I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • defender of the weak
    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


    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
    by defender of the weak

    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.
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,750Posts Today

7,663Users online

Martin's Twitter