Act now on mis-sold endowments: new article

dunstonh

mayb wrote: »

True teliac - an honest 'broker' wouldn't need or want one.

brokers didnt get involved in the retailing of endowments.

mayb_2

It was not meant to be taken quite literally dunston hence the ' ' round it. Sorry if I confused you about that.

moneybags100

webwiz wrote: »

A contrary view.
I find it hard to believe that anyone savvy enough to be interested in this site would really buy a low cost endowment believing that it guaranteed to pay off a mortgage. It was absolutely clear that the final payout amount was not specified at the start.

I can see your point but disagree. I used to sell endowments as part of my job in a bank. (no tomato throwing please) I expect you all think the sales people were deliberately misleading you. Well, when I started many years ago, I had minimal training and my colleagues and I were definately under the impression that the mortgage would definately be paid off. We did not get commission and infact were paid less than most friends. Why would anyone want repayment we'd ask? Later of course we found out the truth. Many of us were upset as we cared about our customers. Yes I know you find that hard to believe, remember I'm talking about individuals not the big company.

I accept that there were people on commission and some who deliberately missold after the endowments were fully understood, probably to get target. The blame for this lies squarely with the finance companies. They set the targets and either you reach them or your life is a misery.

Needless to say I am no longer in banking. Would other ex bank staff back me up on this one?

mayb_2

Well that was a refreshing post moneybags100 and congratulations for having the courage to write it on here too.

Iagreed to buy my endowment mortgage 'over the phone', on the advice of a mortgage advisor who told me it was my only choice if I didn't want to pay 15%, which was the current mortgage interest rate. I am sure he thought that he had found me a good deal but am sure he knew he would get more commission for this sale than a straightforward repayment one. I think that was the driving force behind many a missale and it was encouraged by the companies who employed the brokers.

I think that the mortgage sales desk opperation that has evolved over the years, means that those selling products have little more than the literature given to the customer to go by. They are then motivated by the pressure to sell placed on them by their employers and of course the commission is still in there somewhere. It is the concept of this being just a job rather than it being a profession. If I don't sell it to them the competition will. Mortgage advisor/Sales desk is not Bank Manager is it.

Not that I am suggesting anything about your own role of course , but the fact that you didn't know about the risks of the product you were selling makes my point.

I do believe you were upset when you found out, but the companies still don't accept the culpability for this, so making people jump through all sorts of hoops and then hitting them with a time bar to put a stop to claims. Perhaps you should name and shame your company.

treliac

moneybags100 wrote: »

I can see your point but disagree. I used to sell endowments as part of my job in a bank. (no tomato throwing please) I expect you all think the sales people were deliberately misleading you. Well, when I started many years ago, I had minimal training and my colleagues and I were definately under the impression that the mortgage would definately be paid off. We did not get commission and infact were paid less than most friends. Why would anyone want repayment we'd ask? Later of course we found out the truth. Many of us were upset as we cared about our customers. Yes I know you find that hard to believe, remember I'm talking about individuals not the big company.

I accept that there were people on commission and some who deliberately missold after the endowments were fully understood, probably to get target. The blame for this lies squarely with the finance companies. They set the targets and either you reach them or your life is a misery.

Needless to say I am no longer in banking. Would other ex bank staff back me up on this one?

Thank you very much for your honesty. Some of us have had to fight a very tough corner on this. Those who are, for whatever reason, financially aware often find it hard to understand the naivety of the rest of us who are not (or were very definitely not, back then) and who were taken in by persuasive salesmen.

I even concede that the salesman who sold us a completely unsuitable product, was possibly unclear of the risks himself. In fact, I am prepared to accept that was the reason he never pointed out the chance of the mortgage not being fully covered by what he sold us. We then carried on along a track that we didn't think to question.

It was a different world, in which there was no internet, no access to information as we have today, nobody was questioning the value of these mortgages (and that was what they were called - not investments). You just trusted the 'professional' who came along with all their jargon and apparent knowledge. There was no forum to tap into to check it all out.

And now, to try and limit the damage to themselves, the companies involved are time barring people from claiming redress, even when those people have only just found out that they might have the right to complain - they can discover they are already time barred!

So, thanks again. You were unwittingly involved but you are now being truthful about the dishonesty and total lack of integrity that existed/exists within the financial industry.

mayb_2

Treliac is right about the situation in which many people found themselves and how they got there. The problem is that the industry could not afford to be honest and one of the most upsetting things about trying to claim is the way you are treated - let us say - like a person not likely to be telling the truth.

I was lucky in my mortgage missale claim as it went through like a knife through butter - so different when the company was willing to immediately concede a missale. We were still left with the damage done to our finances and a big mortgage still to pay (for us anyway) However, our savings for a pension, which turned out to be an endowment, was a nightmare, from which we were lucky to emerge with the money we had put in (we were going to get less). It would have made more under my matress and all our hopes and dreams had been tied up in that package.

So while I am happy to hear that it was possible and indeed probable that the salesman was as ignorant as we were of the risk, I cannot feel any better about the nightmare we have been put through and the irrevocable damage to our finances and our lives that resulted.

Did you have one of these yourself moneybags?

brucefan1962

Hi,

Do any of you experts think it possible to claim if time barred. Our endowment is with legal and general, and all lettes etc have come from them. It was actually sold by Nationwide, which I have only just discovered.. As we knew it was not sold directly through legal and generel we did not bother trying to claim, but since reading all this I began to do some research, and would now like to try and claim. Just wondering if you think it worth it or not. A letter from legal and general told us Feb 07 was deadline, but as claim would be from Nationwide would this mean we are time barred.

Thanks for any help or advice you can give

mayb_2

Unfortunately it sounds as if you might be. However, if I were you I would send your letter as some people on this site have been successful despite being rejected at first try. If you believe you were missiold then you should make a claim. If they reject it then I am afraid there is little you can do unless willing to face the cost of court action. It is not a fair ruling.

I wish you good luck.

dunstonh

It is estimated that 3/4 of endowments are now time barred. However, you wont know if you dont ask. Although it should say on the statements when the time bar took effect so read your statements on the endowment to see if it says.

froggy1

pheonix life!!dont get me started,not only did they not know where we lived for 13 years,they then tried to pay less than we had paid them,which was due in may2008 and to date we are still waiting due to incompetance beyond belief and fax machines that send my information into outer space,i have been informed by abbey(which is where the policy originated)that we can expect compensation for each day they mess around from when the policy ended but by then it may have to be paid to my descendants