Act now on mis-sold endowments: new article

Radarjet

Many thanks for your opinions.

I agree that it was a leading and unsubstantiated suggestion on their part and I had no intention of using them, I was just curious as to what the reasonable going rate was to use a company to do the paperwork.

I have now read this full thread and am learning fast and will visit Which to decide whether to go ahead with a claim

I do appreciate all the replies and thanks to *treliac* for your link.

Radarjet

mayb_2

Good luck with that radarjet it is certainly well worth getting to grips with this yourself - if you get any recompense you do not want to have to share it with anyone else. The first step is to try and gather as much paperwork as you can find from the actual sales. This will help you to fill in the forms and may show if you were promised anything on paper as a return for your endowments.

Fullspizz

Hi,
Firstly I have through most of the replies to this thread and found it full of insightful comments.

My issue is that in 1999, we took out our mortgage through an IFA and they recommended an Interest only one with an endownment to pay the house off. He also said that it would probably leave a surplus after the house was paid. Endownment was with Scottish Amicable and is now with Prudential.

Had the letter stating that it may shortfall by £5,500 at a projected 6%.
The endownment was set-up by them with 50% with profits and 50% unit linked, the IFA stated that the fund balance could be changed at a later date to go more one way or the other.
I have spoken to Prudential since receiving my letter and they have told me that this is not possible and I shouldn't have been given advice to say that it was.
I have converted my mortgage to a repayment, but am still paying the endownment at the moment. I have since found out (by reading here) that I cannot sell my plan on due to the unit linked option and the only recourse is to surrender it. They have given me a value of £7,200 (rough)

What would be the best way forward with regards to this?
I have the paperwork from the initial dealing, however the IFA is no longer contactable.

Many thanks

dunstonh

My issue is that in 1999, we took out our mortgage through an IFA and they recommended an Interest only one with an endownment to pay the house off. He also said that it would probably leave a surplus after the house was paid. Endownment was with Scottish Amicable and is now with Prudential.

Nothing really wrong with that statement. 98.2% of Scot Am endowments paid a surplus on maturity this year. Possible and probable are not guarnatees.

the IFA stated that the fund balance could be changed at a later date to go more one way or the other.
I have spoken to Prudential since receiving my letter and they have told me that this is not possible and I shouldn't have been given advice to say that it was.

The IFA is correct. The unit linked part can be changed to alternative funds in their range at a later date.

What would be the best way forward with regards to this?

The shortfall at 6% is £5500. Thats not much and Pru tend to exceed 6% so the shorfall could be lower. What is the cost difference between interest only and repayment as the monthly payments over the remaining term could close that gap further and suggest that keeping the endowment is the best option.

Fullspizz

Dunstonh.

Thanks for the reply.

The IFA is correct. The unit linked part can be changed to alternative funds in their range at a later date.

Prudential have told me that this is not possible and that it will have to stay at a 50/50 split.

Hmm, interesting.

dunstonh

Fullspizz wrote: »

Dunstonh.

Thanks for the reply.



Prudential have told me that this is not possible and that it will have to stay at a 50/50 split.

Hmm, interesting.

I have done fund switches on Scot Am endowments on the unit linked side. Perhaps there is some confusion over the exact wording being used here.

Fullspizz

You could be right.

I asked them if it was possible to convert the 50% unit linked into 50% with profits to make a 100% with profits fund and they said it was not an option.
(The lady on the phone was Indian and had to talk to her manager when asked)

dunstonh

Fullspizz wrote: »

You could be right.

I asked them if it was possible to convert the 50% unit linked into 50% with profits to make a 100% with profits fund and they said it was not an option.
(The lady on the phone was Indian and had to talk to her manager when asked)

That sounds correct. I think from memory they have withdrawn that fund so you cannot put money into it that way. However, the 50% in unit linked funds can be switched around other unit linked funds.

Fullspizz

Thanks once more Dunstonh.
Sorry to be a pain, but do you know what types of funds it could be switched to??

dunstonh

Sorry to be a pain, but do you know what types of funds it could be switched to??

They have about a dozen other unit linked funds like fixed interest, pacific, europe, UK equity etc. Ask Pru to send you the list of funds available for that contract.