Act now on mis-sold endowments: new article

Mr_BJ

I have just had my compensation offer through from the FSO of a few hundred quid. This is to put me back in the position I would have been had I taken a standard Mortgage.

I still feel disgruntled as the possibility remains that there could be a shortfall with my endowment. The FSO say that they can not offer compensation on what might happen ... this seems reasonable.

However, if they are accepting that I was misold ... which a compensation offer suggests they do. It would seem reasonable that they also offer a guarantee that any shortfall will be covered.

Does this sound right and is there any way I can pursue this?

BJ

dunstonh

I still feel disgruntled as the possibility remains that there could be a shortfall with my endowment. The FSO say that they can not offer compensation on what might happen ... this seems reasonable.

What do you mean FSO?

However, if they are accepting that I was misold ... which a compensation offer suggests they do. It would seem reasonable that they also offer a guarantee that any shortfall will be covered.

Many would have said that was the best option. Quite a lot of companies would have preferred that as their endowments have started to return to surplus positions. However, the weaker insurance companies would have lost a lot more as theirs generally get worse, not better. That would have put massive pressure on them and could have sent 1 or 2 under. So, this option was selected.

Also, take a close read at their response. Most endowment complaints are not actually upheld. They are unproven but paying redress anyway. Usually due to the documentation not being strong enough to prove it wasnt mis-sold but not being weak enough to prove a mis-sale. Liability is often not accepted in these cases.

Does this sound right and is there any way I can pursue this?

You cannot pursue it any further. If you surrender the plan, take the redress and pay it into the mortgage and convert to repayment then you would be in the position you said you wanted in the first place. Remember your complaint was that you would have chosen repayment mortgage and not endowment. They have agreed and are now paying to put you in that position.

If you are only getting a few hundred quid then its possible you are not in a shortfall position. If the surrender penalty on the endowment is higher than then the redress payment, then you are actually better off.

The projections are often flawed as they dont normally include terminal bonus accrued to date or any mortgage promise value (if you have a provider that offered that). Others use projection rates which are not consistent with the actual performance and could be either understating the likely return or in some of the bad endowment cases could be overstating the likely return.

johnyboy_3

MSE_Jenny wrote: »

Please use this thread to discuss the new mis-sold endowments article.

This is a continution of the old endowments discussion both here and here.

A Friend of mine made a claim from the Yorkshire BS and lost his case. He went to the FO and still lost. This was about 2 years ago. He has had a letter from the Yorkshire BS last month who state that they are reviewing some cases and his is one of the cases that has been reviewed and they are pleased to inform him that he was in fact mis sold the endowment!! He has got a cheque for around £3,000. Has anyone had a similar experience?

Spooky

Hi

I tried to receive compensation from a mis-sold ?? mortgage myself without using one of the many companies who can do this on your behalf. The conclusion was that the endowment was not mis-sold and compensation would not be forthcoming. However, an initail letter from a company who could have made a claim for me said I did have a case.

I am under the impression that as I took on the case myself it is now unfeasible to allow a company to try and make a claim as I have already been turned down, is this true and should I therefore give up.

dunstonh

However, an initail letter from a company who could have made a claim for me said I did have a case.

Many of them say that automatically. There are some unscrupulous claims companies out there that say anything to get money out of you. In the past some of them had websites where you could fill in a response and even if every response show it was sold correctly, they would still say you could have a case.

I am under the impression that as I took on the case myself it is now unfeasible to allow a company to try and make a claim as I have already been turned down, is this true and should I therefore give up.

You have 6 months from the rejection from the advice company to decide to take it further. After that, you cannot go back and have another go.

Spooky

dunstonh wrote: »

You have 6 months from the rejection from the advice company to decide to take it further. After that, you cannot go back and have another go.

Thanks Dunston. Is that take it further by going to the ombudsman myself because i'm not happy with the findings or by just getting another company to have a go within 6 months of my initial claim. The company who were going to look into the mis-sold endowment said that they can no longer take it on because I had already tried to do it myself.

vinno65

johnyboy wrote: »

A Friend of mine made a claim from the Yorkshire BS and lost his case. He went to the FO and still lost. This was about 2 years ago. He has had a letter from the Yorkshire BS last month who state that they are reviewing some cases and his is one of the cases that has been reviewed and they are pleased to inform him that he was in fact mis sold the endowment!! He has got a cheque for around £3,000. Has anyone had a similar experience?

Just goes to show what a mockery the whole process is!!

Vinno

dunstonh

Spooky wrote: »

Thanks Dunston. Is that take it further by going to the ombudsman myself because i'm not happy with the findings or by just getting another company to have a go within 6 months of my initial claim. The company who were going to look into the mis-sold endowment said that they can no longer take it on because I had already tried to do it myself.

You can take it to the FOS yourself within 6 months. You dont need a claims company.

Keith1956

Endowment mis-selling

I have a 1986 endowment with Norwich Union for £25,000. It was sold to me by Abbey National. I completed the template on the Which? site as instucted by Martin, and received a long questionaire from Abbey ( easy to fill in actually). Today, only 3 weeks later, the Abbey tell me that they have made me an offer of £1,750 and the paperwork is on its way.

Thanks again for Martin's advice and the other Moneysavers posts on this site. In total, with my council tax refund and the interest on that and this endowment offer, I have now got back £4,800 this year. What a result!

Trouble is, I now need to find something else to claim back !
Thanks to the Moneysaving Expert I keep winning!!:beer:

Keith

shandy_2

hello

we took out an endownment in 1992, on the advice of the financial advisor for bristol and west. in 2003 they informed us the endownment policy would not pay off our mortgage so we changed it to a repayment with them (they charged us 50 pounds for this). are we still able to persue for compensation for the mis sold endownment? also we cannot find any documentation relating to the endownment is this a problem?

new to this site. finding it very interesting!

thanks:T