Act now on mis-sold endowments: new article

dunstonh

Can anyone give any advice on what we should do next?

Time to give up. The FSCS only came into effect for policies applied for after August 88. SO, the first one doesnt qualify under FSCS protection.

As the firm was not PIA authorised (PIA is now the FSA) and did not join the PIA when FIMBRA ceased, then none of the protections offered under the FSA schemes apply either.

So, your options are to give up or take legal action. However, if its a limited company and it ceased trading in 1994 then it almost certainly has no assets and is long gone so legal action would be pointless.

Plus, there its harder to win a case in court as you have to prove a mis-sale and the court will consider documents (like cancellation rights, illustrations and key features) whereas the FOS do not.

lacla1966

Thanks for your quick response. Thought best to give up.

Damn disgrace these people sold endownments to unmarried people with no children who were still living with parents.

We went to enquire about life insurance and were advised this was the best policy to take out as we would "easily get £40,000 when the policy matures". We didn't take out a mortgage until 1992, and it was only for £18,000. When we went to get more life insurance we were advised to take out another low cost endownment of £14,000 meaning we could remortgage in future up to £40,000 AND get about £70,000 when they matured in 2013 easily paying off our mortgage and giving us a tidy sum to spend!!!

I wonder how they sleep at night!!!!

Truffle_Pig

This is my first post on what is an excellent website. I bought a Guardian Homebuilder Unit Linked Endowment in April 1990 paying in 54.89 over 25 years, in conjunction with a Nationwide mortgage which has now ceased. The policy is worth 10k on surrender - a little less than I have paid in. I did make a misselling complaint to GRE and the FSA in 2000 but it was rejected as it was felt that the policy was good for a single 25 year old male. I did make the point that the salesman had said I had to have the policy to get the mortgage - but I could not prove this.

Can anyone make suggestions on the following;

1 Should I surrender the policy (I can use the 10k to pay off a chunk of my current mortgage)
2. Can I appeal to the FSA?
3. If I surrender the policy can I make any claim in the future.
4 Is there any benefit keeping the policy - the prospects font look great -http://funds.ft.com/funds/guardian/Insurance/GRMA/history

dunstonh

1 Should I surrender the policy (I can use the 10k to pay off a chunk of my current mortgage)

Depends on whether alternatives are better or not.

2. Can I appeal to the FSA?

The FSA are a regulator. They dont handle or review complaints.

3. If I surrender the policy can I make any claim in the future.

Complain about what? You had you try and failed. You dont get a second chance (the time runs out 6 months after your complaint is rejected).

AdamBrunt

Hi all,

Got a cold call (completely out of the blue) this evening from some company (didn't catch the name) who started the conversation with "according to our records you may have been sold an endowment policy in the past ..." They went on to say that anyone who was sold an endowment policy in the last 8 years could be entitled to compensation if they could show the policy underachieved. I said it was a long time ago (I certainly 'bought' it over 8 years ago) and not sure if I still had the paperwork. They told me to see if I could find any paperwork (particularly any statements) and they'd call back in about a week.

Truth is I no longer have the policy. To cut a long story short, I bought my first flat (at least 12 years ago) with an IO mortgage (and an endowment policy with Countrywide Assured). 7 years ago I got married and moved into a house and whilst remortgaging changed to a repayment mortgage but can't remember what I did with the endowment - I don't recall "cashing it in" and getting any money for it but I did stop paying the 'premium'. Does it sound like I could be entitled to something ?

On the assumption that I no longer have any paperwork for it - are Countrywide Assured likely to be able to provide it ?

Also, presumably the cold caller is on some sort of commission so is there anyway that I can cut out the middle man and claim all the compensation for myself ?

TIA for any help.

Regards,

Adam Brunt

dunstonh

Got a cold call (completely out of the blue) this evening from some company (didn't catch the name) who started the conversation with "according to our records you may have been sold an endowment policy in the past ..."

So they cold call in breach of MoJ rules and then they admit to a data protection breach. Thats a good start.

They went on to say that anyone who was sold an endowment policy in the last 8 years could be entitled to compensation if they could show the policy underachieved.

Couldnt be further from the truth. The FSA do not allow complaints about investment returns.

Also, presumably the cold caller is on some sort of commission so is there anyway that I can cut out the middle man and claim all the compensation for myself ?

It isnt compensation. It is redress. On a successful claim you get put back in the position you would have been in had you been on a repayment mortgage. As you switched to repayment around 7 years ago, it would only be that 5 year period where the redress would be looked at.

And yes you can do it yourself. You put the complaint in writing to the advising company why you think it was mis-sold.

jonathon2412

Hi believe that I have been misold my endowment by my solicitor some years ago, but I have heard that no one has been able to get any compensation from solicitors in scotland is this true.
Hope someone can help John Hunter

dunstonh

jonathon2412 wrote: »

Hi believe that I have been misold my endowment by my solicitor some years ago, but I have heard that no one has been able to get any compensation from solicitors in scotland is this true.
Hope someone can help John Hunter

It depends when but assuming its an older case then you dont have any FSA level of protection (no FOS or FSCS). You have the law society of Scotland and they work to a different set of rules. First its harder to get a complaint upheld (as they work on the basis of law and not the more consumer biased FOS guidelines) and if you do get it upheld the maximum liaiblity is far lower.

Its not a case that no-one has been paid out. Just a heck of a lot less.

rdbaxter

Hi I'm after some advice if possible, I complained about my endowment being mis sold back in 2006 probably when I started to use this site !! They rejected my complaint and I think at the time I did not pursue any further, today I have received a letter from Zuric saying they should not have rejected the complaint and have made me an offer should i accept there 1st offer ? Also they say I can claim costs for changing to repayment I remortgaged in 2001 but still kept endowment running until 2006 when I surrendered it. Wondering if they would pay my setup costs ?

Also the policy was in joint names and I am now divorced how would they deal with this ? We obviously don't have a joint account anymore and I continued the payment on the policy from my personal account for a long time, would they want to issue a cheque in both names or would they do it 2 one ? I don't know were he is anymore. Just wondered if anyone else had experience of this.

Thanks

Rachel

dunstonh

Also they say I can claim costs for changing to repayment I remortgaged in 2001 but still kept endowment running until 2006 when I surrendered it. Wondering if they would pay my setup costs ?

They will pay the fee to switch to repayment mortgage but they dont have to pay anything else. You would have incurred set up costs with a repayment mortgage to an identical amount so you are not worse off there.

Also the policy was in joint names and I am now divorced how would they deal with this ?

They will want to issue a cheque in joint names unless either party is willing to sign the amount over to the other. Or an agreement from both parties that they get 50/50.