Help needed to write to Ombudsman please,

jackie005

Could anyone offer advice?

I took out my endowment morgage in the early 1990's, a few years later I became aware that I would suffer a shortfall.

I made an appointment with my bank manager and asked for advice. He recommended I take out a monthly Scottish Widows bond to cover the shortfall and thankfully, with a struggle I have also been able to pay double the amount of morgage payments since.

Several years back I did recieve letters from my bank advising me to act because of the shortfall and I also received letters re compensation but (idiot as I am) thought that because I had made arrangements to cover the shortfall then compensation did not apply to me....I ignored the letters re compensation.

A couple of months ago I was chatting with some friends and one said that they had received compensation re the shortfall in their endowment morgage. I happen to say that I had made arrangements prior to the letters of compensation and therefore wold not have been entitled to compensation, it was then explained to me that I should have received compensation.

I immediately wrote to my bank's Customer Recovery Services (Lloyds TSB), they replied saying I was out of time. I wrote back with further details explaining that I had not realised I would have been able to make a claim.

They have written back saying because they had sent me letters about compensation and there is nothing more they can do because I am out of time.

I now plan to write to the Ombudsman and would really appreciate any advise anyone is able to offer me.

Kindest regards Jackie.

grogdog

i am afraid it is just like you have been told, you are out of time.

the fact you say you didnt know you could claim will be irrelevant as i dont think they are going to change all the rules because you say you didnt know.

minimike2

The ombudsman will not uphold your complaint, firstly because you have not exhausted the complaints procedure of the endowment provider and secondly because you were written to and have past the deadline.

jackie005

minimike2 wrote: »

The ombudsman will not uphold your complaint, firstly because you have not exhausted the complaints procedure of the endowment provider and secondly because you were written to and have past the deadline.

Many thanks for your reply.
Could you explain why I have not exhausted the complaints preceedure? I thought I had, the bank told me I could now write to the Ombudsman.
As it's not going to cost me anything other than time, I'm going to follow through, if I lose, I lose but if I sould win I'll be estatic!
Regards Jackie,

EdInvestor

Who is the endowment provider?
Who sold the policy to you?

Have you received a "red letter" indicating that the endowment will not pay off your mortgage?When did you receive that letter?

minimike2

Oh right, I didnt realise that, sorry. It didnt sound like you had gone through the full complaints procedure from your original post.

You can try, but I am of the opinion that the ombudsman will side with the provider on this one. They did everything that they could reasonably be expected to to encourage you to claim, but you missed the deadline.

Good luck!

EdInvestor

jackie005 wrote: »

I made an appointment with my bank manager and asked for advice. He recommended I take out a monthly Scottish Widows bond to cover the shortfall and thankfully, with a struggle I have also been able to pay double the amount of morgage payments since.

Was this an investment bond?When did the manger sell you this? How is it doing?

If you are out of time on the endowment (see my previous Qs) it may be that this is what you should be complaining about, as appropriate advice for someone with your apparent attitude to risk would have been to switch part of the mortgage over to repayment, not take out another risk- based product to fill the shortfall gap.

jackie005

EdInvestor wrote: »

Who is the endowment provider?
Who sold the policy to you?

Have you received a "red letter" indicating that the endowment will not pay off your mortgage?When did you receive that letter?

Many thanks for your reply.
The endowment morgage was arranged by my bank Lloyds in 1991 with Scottish Widows.
I made extra provisons to cover the shortfall about 1995 by paying into a monthly Scottish Widows bond which by the end of my morgage will cover the shortfall. Just incase it didn't, I later started paying double the amount off the interest.
4 years ago or so I did receive letters advising me of the shortfall but as I'd already made provisions I did not think the letters applied to my situation. I'm really stupid, I though as I'd covered the shortfall....... then I no longer had a shortfall.
Regards Jackie.

jackie005

EdInvestor wrote: »

Was this an investment bond?When did the manger sell you this? How is it doing?

If you are out of time on the endowment (see my previous Qs) it may be that this is what you should be complaining about, as appropriate advice for someone with your apparent attitude to risk would have been to switch part of the mortgage over to repayment, not take out another risk- based product to fill the shortfall gap.

Hi again, so sorry to be taking your time.
It's all a little complicated but in 1987 a couple of years after my horrific divorce, I purchased my house (no morgage) also the lease of a small shop. The day before I moved into the house and 3 weeks before I took over the shop my son died in a motor cycle accident, all so terribly traumatic. To late to back out I had to go ahead. It took 3 yrs to get rid of the shop lease and I was left with overdraft and loan to pay off but no finances, emotionally I was a wreck and needed time to grieve propely. The then bank manager said best option was to change it to an endowment morgage, the payments would be greatly reduced (no other alternative offered). I did as he suggested. Few yrs down the line I became aware of shortfall (can't remember how I came to be aware) I made appointment with new bank manager. He said best option save with Scottish Widows, the last time I checked was OK. Idea being at the end of term 2012 shortfall will be covered. I've written full account to bank, they say advise offered re Scottish Widows was good advise. I replied saying only because I was able to fund the saving. They say I should have acted when they sent letters re compensation. Last Friday I had letter from Scottish Widows advising me to act because of shortfall in morgage. It really isn't an awful lot in todays terms but evenso is several thousand which I really could do with..So grateful for you help.
Regards Jackie.

dunstonh

The FOS will only overule a time bar when you can evidence why you did not make a complaint for at least 3 years of being aware that there may be a shortfall. Typically they only do this when the company hasnt applied the time bar correctly (not very common nowadays but did happen in the early days) or if you have been incapacitated.

I dont think you will be able to persuade the FOS that you have been incapacitated. Especially as its been over 10-15 years since you first became aware of the potential for shortfall.

EdInvestor

Hi Jackie

Could you post some figures for us to look at please? It does look as though the compo route may now be closed but there are other ways of sorting endowment problems which will have a bigger impact.We need to see the figs.

On the endowment first

Guaranteed sum assured
Declared bonuses
Surrender value
Maturity date
Maturity forecasts
Monthly premium

Total mortgage owed
Interest payable on mortgage

Investment bond:
Total value at present
Fund(s) invested in
Year taken out