Act now on mis-sold endowments: new article

Marmadukecat

mayb wrote: »

Not sure if that was the normal route but perhaps it is worth a try - think it might depend on when you bought it. Before 88 then you may have to go to the FSCS as mentioned in recent posts.

Thank you. It was 1998 so date wise we are OK and it only over the last week or so that we realise we may have been missold. Thanks to reading this forum.

dunstonh

You complain to the IFAs or their network (if they used one). You can verify this by looking up the adviser on the FSA register www.fsa.gov.uk/register

That will tell you if the firm is still trading and if not, who their principle was and you should be able to complain to the principle.

The insurnace company will not consider your complaint. If the IFA is no longer trading and has no assets then the complaint can go to the FSCS.

Before 88 then you may have to go to the FSCS as mentioned in recent posts.

Post 88 is FSCS. Before that there is nothing.

Marmadukecat

dunstonh wrote: »

You complain to the IFAs or their network (if they used one). You can verify this by looking up the adviser on the FSA register www.fsa.gov.uk/register

That will tell you if the firm is still trading and if not, who their principle was and you should be able to complain to the principle.

Thank you the register says "Appointed Representatives - Former "
Date effective 11/04/1997

It then gives and address, a telephone number which doesn't connect, a fax number and an email address.

The address listed is different to that what was on the paperwork we recieved from them between 1998 and 2001. Do we write to the address on the FSA register?

Where do we go if we get no response from this address?

dunstonh

Appointed representative means they were attached to a network. You complain to the network.

If you click on the principles link you will see the network name. Click on that and it will show the address and that is where you complain to.

i_love_it

I was offered 2442.32 compensation on a mis sold endownment taken out on 60000.00 mortgage in 1997

I was offered the sum on dec 2005 ( at the time my endownment funds were showing a 21000.00 shortfall.

I didn't accept the offer as it felt the sum was too small

That was over 2 years ago, I've done nothing since as my plan was to dispute the sum but i became involved with other problems and never got round to resolving this one.

I don't know what steps to take now.

Is it too late to dispute it.

Shall i just call and ask for the agreed sum now?

Any advise very welcome, thank you

dunstonh

I didn't accept the offer as it felt the sum was too small

So despite the calculation being set to a defined formulae and not something you can haggle, you thought it was too small?

Is it too late to dispute it.

It may be too late to be paid it. You have 6 months to accept or decline their offer and take it to the FOS. You declined their offer and they would have closed their case. To the letter of law they can refuse to pay you. Although they may agree to recalculate. It is quite possible you will be offered less. Especially if its one of the better with profits providers or a unit linked endowment. This would be due to improved surrender values.

A redress payment of just £2442 on an 8 year old policy could well be ahead of target with only the surrender penalty causing a redress payment.

mayb_2

i love it - redress, as these compensation payments are called, is not to make up the projected shortfall on your mortgage but to put you back in the position you would have been in at this point in time, if you had been paying a repayment mortgage all along. So in other words if you had been paying the mortgage for 8 years at the interest rates prevailing at the time you would have paid £2342 off of the capital borrowed (two years ago anyway). The idea being that you pay this amount off your mortgage and perhaps take out a repayment mortgage in its place. Some people take out a repayment mortgage to ensure that the mortgage does get paid and keep the endowment policy running so that they may get something back at the end of term. That bit is up to you - whether you think that it may do better in the future than in the past and whether you can afford this payment on top of your mortgage repayment.

Whatever you decide you really ought to look at whether you want to continue with this mortgage or whether you should be transferring it to a repayment vehicle.

There aren't many people who feel that the amount they are offered is worth a candle but it should be worked out in a particular way that is laid down by the FSA (I believe). If you have been offered this money I should assume that they have accepted it was missold to you in the first place. Appealing to the Ombudsman would take a considerable amount of time and would probably not alter the amount offered and as it was two years ago may not be relevant now.

Whatever you decide you should act soon but take into account whether you think it possible mortgage rates may go down in the future before you decide to move.

Lindyloo_2

Hi, I am a keen follower of Martin's site, I have implemented loads of his suggestions, I am a very keen moneysaver and regularly update/review my 'money diet', I use cashback sites, am a credit card tart, switch everything often to my advantage but cannot seem to get any joy with the BIG money saving.

I tried to complain about the obvious misselling of my endowment with the FSCS as the Company who gave me the dubious advice were no longer trading. My answer was as follows:

'Although the policy commenced on 28/9/88 the fact that the proposal date was 24/6/88 indicates that the advice and arranging of the policy took place before 28/8/88. Therefore we are unable to consider your claim.'

My so called 'guaranteed savings plan' as I was quoted when purchasing the endowment policy is due to shortfall a massive £38,000. Does anyone please have any advice on whether there is any hope of making a claim given that my policy was proposed in June 1988 but started in September 1988.

dunstonh

Does anyone please have any advice on whether there is any hope of making a claim given that my policy was proposed in June 1988 but started in September 1988.

Its the date of the application that matters I'm afraid as that is the date you agreed terms and signed the contract. As its before the FSCS came into existence they wont be able to help you.

Effectively you have come to the end of the road as you cannot go to the FOS, FSCS and cannot take court action.

Lindyloo_2

Thankyou Dunstonh, I knew the cut off date meant no claim but I was not sure if they were right about their decision.
Not the reply I was hoping for but at least I know, thanks.