Act now on mis-sold endowments: new article

dunstonh

The figures are irrelevant because no two endowments are the same. Typically, better quality endowments pay out lower or even nothing. Plus complaints handled in the last 12-18 months have generally resulted in lower redress payments than those handled 5 years ago as many endowments have been recovering from a low point.

dreamylittledream

anandp wrote: »

Hi,

I have already had my case reviewed by the FSCS (they were surprisingly quick about it actually).

I expected it to take at least a year, but worked out in less than 6 months at the end.

The offer wasn't great though - less than £100 (including a £9k reduction for DTA) which I found frustrating since it is optional and always has been with my lender.

Just wondered if anyone had had any other experiences with the FSCS.

FSCS offers are much lower than those that come from major providers as they deduct the 'notional gain' from redress - i.e the amount the endowment was cheaper than a repayment mortgage.

Most selling agents are prohibited from doing this unless they can demonstrate you were
a) aware of the savings and
b) still have access to the funds saved (in a practical sense this is near impossible).

However the FSCS are a compensation scheme and thus are not bound by either by DISP or FOs guidance for mortgage endowment redress.

With regard to the DTA issue, if you were single with no dependants when the policy was taken and can prove that life cover was not a condition of lending (i.e you can get hold of a copy of the mortgage offer from your then lender), you have a shot at getting DTA excluded from the calculation.

You can also challenge this if you can prove you had sufficent life cover already in place to cover your mortgage (this must be a separate policy, not Death In Service cover mind).

But if you were married, had kids or were buying jointly, and didn't have any life cover, you have no chance of the life protection being removed from the calc.

The typical FSCS calculation is no loss in my experience, so £100 is better than nothing!

mayb_2

Don't hold your breath then anandp!!

TonyJ_3

We applied for a misold endowment claim a while back with encouragement of a free soliciter, through the fsa...the soliciters are now bankrupt

Natwest home loans denied it all and we got nothing.

Our mortgage is finished in 3yrs and we will owe £15.000 maybe less,

Fsa said that because natwest kept us informed that there would be a shortfall at the end of the term and we did nothing about it. It was down to us.
True we didnt but the yearly letters they wrote to us we did ignore because we took it that they just wanted us to pay more on our mortgage which we couldnt afford, i suppose ignorance is bliss.

I keep reading all these messages about claims and i keep thinking there must be something we can do.
Advice please would be good time is running out i have just turned 60 now Tony 62.
Worried.
TonyJ

dunstonh

I keep reading all these messages about claims and i keep thinking there must be something we can do.

First thing you need to realise is that having an endowment is not a mis-sale. The majority of endowment complaints are rejected. Most of which due to correct and adequate documentation showing that. So, statistically, you are more likely to get a rejection.

Fsa said that because natwest kept us informed that there would be a shortfall at the end of the term and we did nothing about it. It was down to us.

The FSA dont get involved in complaints at consumer level. Do you mean the FOS or have you just talked to the FSA's consumer line for information?

If you have complained to Natwest, then had it referred to the FOS who have rejeceted it then you basically have to accept that it was not mis-sold. There is the option to use court action but then you have to prove mis-sale and and that is a lot harder than using the FOS. Plus there is the expense and very low success rate.

TonyJ_3

Well thankyou for a quick response....
TonyJ

mayb_2

I think what has happened here is that you were probably missold your mortgage, but have been time barred, for not claiming in the period allowed after you first have a written warning that your mortgage would not be paid off at the end of term. Unfortunately both the FSA and the government have allowed the finance companies to use this method of barring people from claiming. It is very underhand but there is little that can be done short of taking the company to court and that would be too expensive I'm sure.

Have you spoken to Natwest about how you can address this problem? If nothing else you may be able to take on an equity release system, which means you could borrow money against the value of your house to pay off your mortgage if you don't want to move to a cheaper house. Not a good time to do either really right now as house prices are falling. I would suggest you contact Help the Aged. They have a very good advice system and advocacy service too. I am sure they will be able to tell you what your options are. Don't worry there will be an answer to your problem. Unfortunately the financial services industry has no conscience about people like you and the many others in the same position. Having made such a huge mess in the mortgage market the banks are probably not going to have any sympathy to those paying the price in hiked up mortgage and loan rates. If you chose equity release it may be worth looking at ones offered by SAGA etc who specialise in the over 50's market. You still have 3 years to go and things may be different in three years' time. Good luck with what ever you chose to do.

ericabro

Hi All,

I asked this question about a year ago but cant find the thread

Endownment has just matured and there is a shortfall it was supposed to pay £15900 plus £7000 and the figures coming out now are £14400 we have wrote to Halifax and Pheonix who are now the holders of this policy and they have wrote back saying take it up with The Bank of Scotland can they do this? They said last year it would make the £15900 but it hasnt, what can we do now as we are waiting for the money and they are getting the interest of it. Its driving him Nuts please only post sensible replies.

dunstonh

They said last year it would make the £15900 but it hasnt,

No they didnt. No projections give a guarantee. They give examples using sample rates of return.

what can we do now as we are waiting for the money and they are getting the interest of it.

No, you are getting the interest on it.

they have wrote back saying take it up with The Bank of Scotland can they do this?

Your complaint isnt with the provider but the seller. HBOS sold the policy and Phoenix are saying go back to them as seller.

ericabro

Yes they sent a cheque last year saying there was a shortfall of £75 and that this cheque would cover that shortfall at that time, we refused to cash it and when the policy matured last month we spoke to someone from Pheonix who told us to send the cheque back to them and they would sort it all out. and now this letter has come saying take it up with the bank of scotland why wait till now when we first complained last year? to say take it up with someone else, is this worth complaing about as the guy who sold the policy has died so where does that leave us?