Act now on mis-sold endowments: new article

Rowan9

Hello _ I wonder if anyone can offer advice? I've always assumed I would be unable to attempt any claim for 2 x 25 yr endowments because my ex-husband took all the paperwork when we divorced and I don't know who sold us them. Both were made over to me as sole beneficiary. One is AXA and paid out this year, the other is Norwich Union (was Standard Life) and is showing a shortfall for completion year of 2014. Is there any way for me to find out who the original agent was or begin to query a claim?
Ex's refusal to talk means the most obvious way of finding out is not an option.
W

dunstonh

Is there any way for me to find out who the original agent was or begin to query a claim?

You ask the insurer who the selling agent was. You should also ask them if you are time barred or not.

If a complaint is made and redress payable then the redress would be paid out to the current policy owner. This means that if the endowments have been assigned following divorce then the owner gets the redress.

Rowan9

dunstonh wrote: »

You ask the insurer who the selling agent was. You should also ask them if you are time barred or not.

If a complaint is made and redress payable then the redress would be paid out to the current policy owner. This means that if the endowments have been assigned following divorce then the owner gets the redress.

Thanks very much for your help. I'll look into it now.

gaz_lewis

My parents (mid 60's) have 2 endowment policies and an interest only mortgage that only have a year left to go on them. Both of these are likely to deliver a short-fall. They told me that they were never warned that the endowments could deliver a shortfall but instead were told it would pay off their mortgage and they'd have a lump some as well. It sounds like the same old story! I think these were sold to them by a local mortgage broker but the policies are with Scottish Widow and Friends Provident. Do they have grounds for a claim? If so, is it against the broker or SW/FP? What evidence do they need?

I'm not finance expert and my parents know even less hence me asking this question.

Thanks in advance.

dunstonh

Do they have grounds for a claim?

If they were mis-sold them then they have a valid reason for complaint. Its not enough to just say "I was told they would pay off the mortgage and have a lump sum as well". Also, after all these years were they told it could pay off the mortgage and provide a lump sum as well or would pay off the mortage and provide a lump sum as well? One is compliant and acceptable, the other isnt.

If so, is it against the broker or SW/FP?

Its against the advising firm.

What evidence do they need?

None really. Of course, without evidence you parents are going to have to rely on the advising firm no longer having some or all of the records or the documentation not being up to scratch. Anyone can say they were told something or not told something so documentary evidence is King.

Statistically, most endowment complaints are rejected. However, of those that do result in favour of the consumer the majority are because the documentation is not satisfactory.

One final point is that you should find out if they are time barred. Chances are FP is time barred as they have been very active on that front using dates in 2001,2003 and 2004 with most of theirs timing out in 2007. I dont know about SW. A phone call to each asking if they are time barred or not and who the selling agent was will give you two bits of info needed.

mattie5

been reading the posts on missold endowments - but had to cash in mine when i divorced in 2003 and it was difficult at the time to do anything but what i was told to by my solicitor. it was sold to us when we bought a new house in 1991 and the building company recommended a mortgage broker (as they do) who arranged the mortgage. we wanted the house of course and was told that the policy would not only pay the house up but a sizable amount would be left over. i remember getting a couple of letters before the divorce when we were told that the endowment would not cover the mortgage, but bearing in mind everything was going, well that was that. does anyone think i might have a claim as its a bit retropective?

dunstonh

does anyone think i might have a claim as its a bit retropective?

Well its certainly past the 3 year point as to being aware of the potential of a shortfall. You would also need to put the complaint in jointly (one of you could complain but it would be treated as a joint complaint) and any redress paid would be payable jointly as well.

mattie5

thanks for reply but only becoming a bit savvy as a bit hard up lately and if you look at my other post which i put on today saying thanks to the site (i have debanded my house after 4 years, claims back bank charges and credit charges etc etc) again thanks i will try it

dunstonh

mattie5 wrote: »

thanks for reply but only becoming a bit savvy as a bit hard up lately and if you look at my other post which i put on today saying thanks to the site (i have debanded my house after 4 years, claims back bank charges and credit charges etc etc) again thanks i will try it

Just to make you aware that unlike bank charges etc, when you make a complaint against an FSA authorised individidual you are effectively accusing them of telling lies and breaching rules. It is possible that your complaint could see them face disciplinery action which can include being fined, dismissed or ultimatly struck off the FSA register.

So, you shouldnt put a complaint in on the basis that its worth a go and there is no harm to anyone if you do. If you were mis-sold then fair enough and go for it. If you were not and are just looking for an easy payout then you shouldnt.

mattie5

not looking for an easy payout but everyones been taking me for a ride for years, yes i wanted the house, yes i went to the mortgage broker the house builder sent me to to secure the mortgage and not make things difficult and never heard of endowments before or had one since, i feel the person did not give us the best advice and was primarily working for the house builder and when it came to the divorce was ripped off there too ( made a few enquires i dont think they trade anymore but not sure )