Act now on mis-sold endowments: new article

billymac05

whilst i was "sold" my endowment by a IFA before the cut off date of 29th April (TWO DAYS before) does the fact that the IFA offered me a bung of £200 IF i took an endowment mortgage, and only if i took an endowment mortgage not count for anything?

The FOS, whilst being helpful, are of the opinion that the policy was done and dusted before the 29th (even if the policy didn't start until June 1988) and therfore cannot help me.

many thanks if anyone can help me here!

dunstonh

billymac05 wrote: »

whilst i was "sold" my endowment by a IFA before the cut off date of 29th April (TWO DAYS before) does the fact that the IFA offered me a bung of £200 IF i took an endowment mortgage, and only if i took an endowment mortgage not count for anything?

The FOS, whilst being helpful, are of the opinion that the policy was done and dusted before the 29th (even if the policy didn't start until June 1988) and therfore cannot help me.

many thanks if anyone can help me here!

Answered on your own thread. Please do not duplicate posts.

gillyflower1

Hi, another new user here. I've just got a reply from our insurance company telling us we are time-barred to claim mis-selling of our endowment. They sent a copy of a letter they say they sent to us in 2005 stating that we had until June 2006 to claim, otherwise we would be out of time. I've looked through all our paperwork and can't find the letter they say they sent. I'm surprised really that such an important letter wasn't sent recorded delivery -but I suppose that would be too much to expect! I've written back to them explaining that we didn't receive the letter but don't expect to get very far.

We have also just found out that a top-up endowment we took out over ten years ago, with the same insurance company, on the advice of a financial advisor, is not a top-up endowment and is just term assurance with no maturity or surrender value. We've been paying this for over ten years and didn't realise it wasn't what we were told it was.

I've now also written to the insurance company complaining about the selling of this policy as well, and as my husband's pension is also with them I have asked for information on how to transfer this to another provider. At least then they won't be getting any more business from us!

dunstonh

I'm surprised really that such an important letter wasn't sent recorded delivery

Its not a really important letter. It was a letter in a chain of letters reminding you of the date. To miss the time bar would mean you didnt read a number of letters.

I've written back to them explaining that we didn't receive the letter but don't expect to get very far.

Well used excuse that doesnt go very far due to its abuse. You missed that one but what about the others over the previous 3 years?

The time bar is supported by the regulator when executed correctly and they only tend to overule when you have a really good excuse for not complaining in that three year period. Such as hospital or out of the country.

We have also just found out that a top-up endowment we took out over ten years ago, with the same insurance company, on the advice of a financial advisor, is not a top-up endowment and is just term assurance with no maturity or surrender value. We've been paying this for over ten years and didn't realise it wasn't what we were told it was.

Was the top up mortgage on interest only basis or repayment basis? It doenst have to match your original mortgage.

gillyflower1

Thanks for your reply dunstonh.

We moved house in 1997 and the financial advisor said we would have to top up the existing endowment policy by buying another smaller policy, so that the new mortgage was fully covered. The mortgage at the time was part repayment & part interest only.

Any suggestions you can make will be gratefully received!

TeeVeeBee

dunstonh wrote: »

Answering last two posts in this one.



The response they have given should tell you that you can go to the FOS if you are not satisfied with their reasons why you are rejected. Although, if your case was pre-regulation, they would not include that option as it wouldnt apply to you.


No. You only get one attempt unless new information comes to light.



No, you would have timed out on that option. Plus, you would have to prove mis-sale and thats a lot harder than the method that the FOS use (where the company has to show it wasnt mis-sold).

Thanks v much for that info Dunstonh

Could the fact that my endowment doesn't mature until 2013 [when I am 69yrs old] be 'new information?'. This was never taken account of in my first claim. Can you suggest any other area that I could look at for 'new information'?

marie17

In 1986 my husband took out a mortgage with his parents (they were too old to have a mortgage of their own). My husband left home to live here wth me in 1991, his parents carried on paying the endowment mortgage. MY father-in-law died in 2001, and mymother-in-law carried on paying. Unfortunatly she is at the start of Senile dementure and we have now found out that for 3 years she has been having letters telling her of a shortfall in the final payment which is due in July 2011, but hasn't told anyone. Is there anything we can do, what happens in july 2011 when the payment is due and we don't have any money to pay the shortfall. Will my mother-in-law be turned out of her home, is there anything we can do. I hope someone can give me some advvice. Thank you.

dunstonh

In 1986 my husband took out a mortgage with his parents (they were too old to have a mortgage of their own). My husband left home to live here wth me in 1991, his parents carried on paying the endowment mortgage.

1986 is pre-regulation. 29th April 1988 is when regulation came in. So, unless you bought from a tied representative, there will be no option to complain.

Unfortunatly she is at the start of Senile dementure and we have now found out that for 3 years she has been having letters telling her of a shortfall in the final payment which is due in July 2011, but hasn't told anyone. Is there anything we can do,

Why didnt the policy pay out the death benefit when your FIL died? Assuming your husband was on the policy (as he was also on the mortgage), why didnt he spot the shortfalls?

After 3 years of being notified of a high risk of a shorfall, the endowment can become time barred for complaints. Most endowments are now time barred.

The time bar can be overuled if there are good grounds for not complaining and whilst senile dementure could be one of these, as its only early stages, it doesnt explain the last 3 years.

jamesd

marie17, there's no reason to be greatly concerned. There's ample time to deal with this and nothing dramatically bad is going to happen with the endowment and mortgage so long as you continue with your work to sort it out over the next year or two.

If there's a shortfall another mortgage or a loan can be used, depending on the amount of the shortfall. With the endowment paying off most of the mortgage it's unlikely to be difficult to obtain a mortgage that can be repaid by selling the property on her death. But there are likely to be better solutions than that. Do not go to a company that advertises that it will buy a property and let her live in it and pay rent for life - there are better options with more security for her.

There's no need to wait until the end of the mortgage term to deal with this. You could arrange another mortgage at any time. That may also save money on mortgage interest payments if the current mortgage is uncompetitive, perhaps on the lender's standard variable rate.

You might start by beginning a new topic and giving there details of the endowment (the projected value and shortfall amounts, company it's with, payment being made) and the mortgage (company, interest rate, end date, monthly payment, if there are any penalties for leaving it, roughly when it was taken out). Also her age now.

It takes about 18.50 a month per thousand Pounds of shortfall if you or she want to start saving to pay any possible shortfall, assuming a 6% savings interest rate, tax free in an ISA.

marie17

Thank you for the advice given.
Dunstonh... the policy was as follows... all three names were on the policy. my husband, his father and mother. If my husband should die, then my father-in-law would continue with the payments, if my father-in-law should die then my husband would continue. (although when my father-in-law did die my mother-in-law insisted on paying as she was living in the house and at the time could afford it.) but if after that my husband and father-in-law died then the insurance policy would pay out and my mother-in-law wouldn't pay anymore.It seemed rather complicated to me when I first heard it. Does it make any sense to you? Also, what are the consequesces if, at the end of the term we don't have enough money to pay the shortfall? will we loose the house?