Act now on mis-sold endowments: new article

section60

Are peps considered the same as endowments for miselling purposes ?

dunstonh

section60 wrote: »

Are peps considered the same as endowments for miselling purposes ?

They are. Although I would be surprised if the PEP is off target. Even using bank or default insurance company funds.

All the PEP/ISA mortgages I have on my books are running significantly above target. Many on track to knock 10 years off the mortgage. You would have to have had a pretty poor investment selection or a far too high target growth rate to be off target with a PEP/ISA.

Stuntkiteb

Hi, I am new to the site so please forgive me if I have posted in the wrong place.

We bought our endowment in November 1986, and it would seem that after writing to the seller, ombudsman and MP, that mis-selling only applies to endowments sold after 28th Aug 1988.

We were told by the seller that the only amount in question was just how big our nest-egg would be when it paid off, however we seem to be facing an £8000+ shortfall with no come-back against the seller.

Anyone have any idea's as to what we can do?

Thanks for your help.

dunstonh

Anyone have any idea's as to what we can do?

Regulation didnt come in until 29th April 1988. The 29th August date relates to the financial services compensation scheme for firms that are no longer in business.

There is nothing you can do apart from planning for a potential shortfall. I say potential as many endowments have been recovering nicely and the shortfalls are closing. In addition the lower cost you have paid each month compared to a repayment mortgage at least go some way to making up for things. If you assume £20pm average as the monthly amount you are better off then over 25 years thats £6000. So, the net cost difference isnt that great and I am sure that £20pm when you started would have been harder to find than a possible repayment for £8000 now.

Of course, you are not just now aware of a potential shortfall. Its been a good 5-6 years now that shortfalls have been referred to and with 3 years to go, funding for a potential £8000 shouldnt be too bad.

section60

Thanks Dunstonh

My pep is with the halifax and is currently underperforming . Its approx 8yrs into the term . i will dig out the details and let you know by how much

dunstonh

Ahh, a bank fund. The concept of PEP/ISA is good. Bank funds though are not up the job. However, its easy to get them switched into something more appropriate. Let us know the details though.

dreamylittledream

dunstonh wrote: »

They are. Although I would be surprised if the PEP is off target. Even using bank or default insurance company funds.

All the PEP/ISA mortgages I have on my books are running significantly above target. Many on track to knock 10 years off the mortgage. You would have to have had a pretty poor investment selection or a far too high target growth rate to be off target with a PEP/ISA.

You do get ISA's invested partly in banks/building soceity's with profits funds...

Not too surprising some are miles off target then!

mayb_2

Although I would be surprised if the PEP is off target. Even using bank or default insurance company funds.

You would have to have had a pretty poor investment selection or a far too high target growth rate to be off target with a PEP/ISA.

My pep is with the halifax and is currently underperforming

Ahh, a bank fund. The concept of PEP/ISA is good. Bank funds though are not up the job.

Did I miss something here dunstonh or did you just contradict yourself?

dunstonh

Did I miss something here dunstonh or did you just contradict yourself?

No. I would expect it to be on target when he comes back with the figures. It would have gone off target during the crash years but the lower price of units being bought each month should have it back on track just.

Bank funds are usually pretty naff. They are not the best options and its something that can be resolved at zero cost.

You do get ISA's invested partly in banks/building soceity's with profits funds...

Not sure of any banks or building societies that have a with profits fund. With profits was not an option for PEPs. Sorry to spoil the

dreamylittledream

dunstonh wrote: »

No. I would expect it to be on target when he comes back with the figures. It would have gone off target during the crash years but the lower price of units being bought each month should have it back on track just.

Bank funds are usually pretty naff. They are not the best options and its something that can be resolved at zero cost.



Not sure of any banks or building societies that have a with profits fund. With profits was not an option for PEPs. Sorry to spoil the

I know it wasn't an option for PEPs - hence why I said ISA's. Do please read before playing smart alec.

Abbey National Life and Halifax Life both had a with profits fund which was an option for ISA investment, should know I used to sell the former - albeit both now closed to new business.

Didn't really ruin the smilie at all now did you?