Act now on mis-sold endowments: new article

Crazy_Saver

Poor you.

I had the same thing a few weeks ago, having regular physio now-spelling doesn't look right but it's too late at night for me to care to check it! I'm waiting for a tens machine from my physiotherapist as we speak.

I won't hog the board with medical chat- get well soon, I find Gin helps:beer:

treliac

Yes some say that we were greedy, but can anyone honestly say that if they were offered the same deal today on their mortgage that they wouldn't take it? We didn't walk into the FAs office and demand a money making scheme, we just wanted a mortgage. I can honestly say that I had no idea that endowments even existed until we were sold our first mortgage back in 1987 and the advisor told us we would probably have about £50k in our hand at the end of the term.

Absolutely, Crazy Saver. We only got hooked up with an FA because we already knew him and he was working with the company that employed my OH. This is why I give him the benefit of the doubt when it comes to intentionally mis-selling to us, although he had, apparently, boasted to OH about how much he was raking in! I suppose we would have taken that to mean he was good at what he did!!! OH is not so generous now, though. It's probably just as well that our 'friendly' FA moved out of the area many years ago.

I hope you're right about today's generation just starting out. The one thing our children are learning from us, I hope, is to question everything and to do their own homework. Ours are in their teens and I think they are quite good too but, of course, access to information is soooo much easier now.

We and our kids actually went without other things in the early years so we would have something when we retired. With this and the mortgage endowment we do have something - a load of debt. Not quite what we bargained for.

As you know Mayb, although I empathise with you on this, I still hope to be successful in, what seems to me, to be a totally clear cut case! But, we did seriously go without when the kids were young just so we could stay afloat and make all our due payments. OH was made redundant on more than one occasion and could only get casual work. There was a time when the children were 3 and under a year when I was working days and he was working nights. He got 3 hours sleep in the evening and 3 hours in the morning, around my coming and going to work. We did all this to make ends meet and now we find that all the payments we made on the mortgage were wasted, counted for nothing and we had to start again from scratch when we took a repayment one.

They wont make the same but they will have their own versions.

Very true, dunstonh.

If you limit yourself to financial services, the current areas of concern for the FSA are internet portals for DIY purchasing (those that focus purely on price and not quality) and SIPPs (advice and DIY).

Interesting, fortunately we have never got involved in any other investments, never had the money or been the type. If I ever come into serious money now, I don't know what I'd do. Once bitten twice shy. This whole experience has increased my interest though, intellectually, that is and I am now starting to follow these things in the media.

P.S. Mayb and Crazy Saver - I'm probably stating the b. obvious but have you both tried diclofenac (Voltarol) for the backs. It works on another old crock from the 80's - me!!

Crazy_Saver

treliac wrote: »

I hope you're right about today's generation just starting out. The one thing our children are learning from us, I hope, is to question everything and to do their own homework. Ours are in their teens and I think they are quite good too but, of course, access to information is soooo much easier now.



As you know Mayb, although I empathise with you on this, I still hope to be successful in, what seems to me, to be a totally clear cut case! But, we did seriously go without when the kids were young just so we could stay afloat and make all our due payments. OH was made redundant on more than one occasion and could only get casual work. There was a time when the children were 3 and under a year when I was working days and he was working nights. He got 3 hours sleep in the evening and 3 hours in the morning, around my coming and going to work. We did all this to make ends meet and now we find that all the payments we made on the mortgage were wasted, counted for nothing and we had to start again from scratch when we took a repayment one.

P.S. Mayb and Crazy Saver - I'm probably stating the b. obvious but have you both tried diclofenac (Voltarol) for the backs. It works on another old crock from the 80's - me!!

Hi treliac.

We are still at the going without stage at the moment (kids age 11 and 13). Although, we did think of ourselves for once when we sold our dud endowment just before christmas(yes that was the advice from everyone on these boards). We sold it for £15700 as it was supposed to make £60000 in 8years time-but was showing a shortfall £33000. As soon as we received the cheque, we paid £10000 off the mortgage, changed our mortgage to repayment and extended the term by 10 years to cover the loss. After much deliberation and discussion with family members, we decided to keep £5000 back to spend on the many things we couldn't really afford. We bought a car that goes, sofas for the living room that actually match, a second hand tourer caravan so that we can have a holiday in the summer and we are having our front garden paved so that we have somewhere to actually park the car.

After all, life is too short to struggle on forever and the kids will be grown up soon and we want to be able to enjoy life with them before it's too late.Plus, we did pay the bulk of the money straight back into the mortgage;)

p.s. diclofenic didn't work for me-gp suggested taking it with paracetamol as well but I never quite got the timing and dosage right!
Poor old girl:rolleyes:

treliac

Crazy_Saver wrote: »

Hi treliac.

We are still at the going without stage at the moment (kids age 11 and 13). Although, we did think of ourselves for once when we sold our dud endowment just before christmas(yes that was the advice from everyone on these boards). We sold it for £15700 as it was supposed to make £60000 in 8years time-but was showing a shortfall £33000. As soon as we received the cheque, we paid £10000 off the mortgage, changed our mortgage to repayment and extended the term by 10 years to cover the loss. After much deliberation and discussion with family members, we decided to keep £5000 back to spend on the many things we couldn't really afford. We bought a car that goes, sofas for the living room that actually match, a second hand tourer caravan so that we can have a holiday in the summer and we are having our front garden paved so that we have somewhere to actually park the car.

After all, life is too short to struggle on forever and the kids will be grown up soon and we want to be able to enjoy life with them before it's too late.Plus, we did pay the bulk of the money straight back into the mortgage;)

p.s. diclofenic didn't work for me-gp suggested taking it with paracetamol as well but I never quite got the timing and dosage right!
Poor old girl:rolleyes:

Hi Crazy Saver

I guess this is the endowment you have complained about being mis-sold. I hope you will end up with the redress that will enable you to reduce your mortgage even more.

Bet the kids enjoy the caravan. We had one up until the other year - lots of happy, carefree, rainy and even snowy memories! You can take them round the country, excellent way of having fun and educating them.

treliac x

treliac

I've been thinking of whether it would be useful to have a mortgage mis-selling thread for those of us going through / having been through the complaints process.

We could share experiences, off-load our frustration and support each other through this long and drawn out process. We could share, learn and help each other prepare for complaints to the Ombudsman Service and be aware of the pitfalls people encounter - forewarned is forearmed.

Some of us here are getting quite involved with our stories. I'm finding it very supportive. Are there any comments on whether it's of interest to others and best kept within the thread or whether it would be better running alongside but separate?

Thanks, treliac

stmidwife

Hi, wondered if any can tell me if I can claim for being mis-sold an endowment policy.

Took policy out in 1997 to cover £45,000 paid £75 per month plus mortgage payment. Was told at the time of taking it out that it would cover the mortgage and give a lump sum at the end. Endowment was also recommended as it worked out cheaper that a repayment mortgage. At no point were we told there may be a shortfall.

Anyway, our finances took a turn for the worse and we stopped paying into the endowment and eventually surrended it in 2003 for £1200!!!

The policy was sold to us via a broker at out local estate agents but I seem to recall he was tied to Winterthur. Who would I contact?

Thanks in advance
x

dunstonh

Endowment was also recommended as it worked out cheaper that a repayment mortgage.

one of the most common reasons for doing an endowment was its lower cost.

At no point were we told there may be a shortfall.

Strange. As by 1997 the illustrations were using 4%, 6% and 8% and the 4% would have shown a shortfall figure. There was also the compliance warnings on there by that time that said that they were just examples and you could get less or more than them.

Anyway, our finances took a turn for the worse and we stopped paying into the endowment and eventually surrended it in 2003 for £1200!!!

Good job you had the endowment then so you could use the value. Something that would not have been the case had you been on a repayment mortgage.

The policy was sold to us via a broker at out local estate agents but I seem to recall he was tied to Winterthur. Who would I contact?

The estate agent.

dreamylittledream

dunstonh wrote: »

Good job you had the endowment then so you could use the value. Something that would not have been the case had you been on a repayment mortgage.

The estate agent.

Winterthur and its predecessor's only sold through tied reps.

Complain to them in the first instance

mayb_2

Strange. As by 1997 the illustrations were using 4%, 6% and 8% and the 4% would have shown a shortfall figure. There was also the compliance warnings on there by that time that said that they were just examples and you could get less or more than them.

Just because something should have existed it doesn't prove it was shown at the point of sale, and its implications explained, or indeed that it did exist.

dunstonh

mayb wrote: »

Just because something should have existed it doesn't prove it was shown at the point of sale, and its implications explained, or indeed that it did exist.

It would also have been sent with the cancellation rights.

Remember this is a 1997 sale not a 1987. Things were generally better by 1997