Complaint Upheld - Yippee!!!

stevepsych

Hi all,

just wanted to post my good news. After nearly 2 years of battling, the ombudsman wrote to us yesterday upholding our complaint against L&G for mis-selling endowment. I'm really pleased, however I understand that the next stage can be a bit of a complex matter in agreeing compensation?

Does anyone know about this or can offer advice or been through this stage? I've been paying into the endowment for 10 years now.

Two days before the ombudsman's letter I got the annual L&G review and the policy is holding approximately 3 grand less than what I've paid in over the years! I would have been better off putting the money in a jar!!!

Steve

ohmsoft

L&G will have to use a prescribed calulcation from the FSA (under Regualtory Update 89 if I remember right) to calculate the redress. The calculation will compare the position you are currently in to the posistion you would now be in if you took a repayment mortgage from the outset. L&G should pay you the difference (the calulcation can deduct certain things you may have done over the term to mitigate losses, like making capital repayments or convertin/repaying your mortgage).

Mistakes can happen, but to be honest, if the Ombos involved in all likleyhood the calulation they make will be correct and should be quite hassle free - (the FOS would normally give the firm 4 weeks to settle).

HTH

dunstonh

however I understand that the next stage can be a bit of a complex matter in agreeing compensation?

Not at all. In fact, this is the easiest bit as the calculation method is defined.

Two days before the ombudsman's letter I got the annual L&G review and the policy is holding approximately 3 grand less than what I've paid in over the years! I would have been better off putting the money in a jar!!!

That isnt how investments work though. They do not perform in a straight line. They zig zag and we recently had a major zag. For unit linked endowments with a fair bit of time to go, this "zag" could be highly beneficial even if the short term it looks bad.

The calculation will be done to see how much, if any, you are worse off by. The surrender value of the endowment is used, rather than the current value. Whatever the difference is between where you would have been on a repayment mortgage and where you are on the endowment mortgage is the redress you are paid. Cost of life cover is taken into account with both to ensure like for like.

socrates

As you are an expert on the subject I too have a L&G endowment which I bought in 1989/1990 which is going to fall short - do you think its worth a go or am I too late?

dunstonh

socrates wrote: »

As you are an expert on the subject I too have a L&G endowment which I bought in 1989/1990 which is going to fall short - do you think its worth a go or am I too late?

If you are time barred then its too late. If you are not time barred then you can still put a complaint in if you feel it was mis-sold. Shortfalls are not valid complaint reasons though.