First post, hope you can help!

Flightman_2

Quick endowment question.

About 15 months ago we wrote to our endowment company, as it was performing badly and we thought we'd be mis-sold. The company told us that we were sold ours through and "agent" and to contact them. They've gone out of business. We wrote to the FSA and they said that because our policy was taken out in 1987, before they were formed, we were, basically, stuffed. :mad:

Is this right?

canny_yorkshireman_2

Yep you are just like me and thousands of others.

Flightman_2

Thanks for that, but how do you explain this posted elsewhere on this forum?

Hi everyone

I haven't posted on this board before and I wonder if I could ask your advice.

My mum is one of those with an endowment shortfall and has just had an offer for compensation (to give more information the endowment was taken out before the FSA was invented in I believe 1987). Before she takes it I just wanted to run it past you, to see if you think it's fair. The figures I am using are approximate to give you the general idea.

The capital remaining on her mortgage is £25,000

The endowment is going to pay out just over £17,500

The mortgage company have worked out that if she had had a repayment mortgage, her position at this time would have been £22,000 (I assume this means the amount she would have paid off)

They have therefore offered the difference between the repayment figure ie £22,000 minus the endowment amount ie £17,500 which equals £4,500.

EdInvestor

Not everyone who took out their policy before regulation in 1988 has no hope.If it was sold by a big company like a bank or life insurer, compo may be payable.But IFAs, estate agent and other small operators generally do not have to pay.

dunstonh

...add therefore is it's before 1988 and sold by an agent (at that time), its not covered by the provisions of the finance act and no protection is available.