Act now on mis-sold endowments: new article

dunstonh

what do you mean by this?

The failure of an investment to hit target is not a mis-sale or something you can complain about. A mis-sale is how the product is explained at point of sale. If you know that its subject to investment returns and it may not hit target or may require further funding to hit target then you were aware of the risks and in this case it hasnt paid off. Some risks pay off, some dont.

ystalyfera

dunstonh wrote: »

The failure of an investment to hit target is not a mis-sale or something you can complain about. A mis-sale is how the product is explained at point of sale. If you know that its subject to investment returns and it may not hit target or may require further funding to hit target then you were aware of the risks and in this case it hasnt paid off. Some risks pay off, some dont.

:money:thought thats what you meant cheers Dun:money:

mayb_2

Thanks treliac - it looks as though I have a lot of catching up to do!!

maby66

Hi - just after some advice at this time.
A pile of paperwork has come to light from the attic - put there when I moved house some years ago.
In it are the documents relating to an endowment that I orignally took out out to cover my first mortgage on my first house purchase.
The facts as I have them:
Endowment policy taken out in Aug 1992 with Hambro Gaurdian (later Hambro Assured, now Countrywide Assured).
Mortgage amount £77,120 - growth illustrations used 10.5% and 7% and an assumed growth interest of 9%. Current monthly payments £100.86.
Endowment recommended by "in house" advisor within the Mann and Co estate agents - all documentation that I have is in the name of Hambro Guardian.
I had orignally asked for a repyment mortgage but was swayed by the the advisor and the "promise" of a lump sum.
"Red letter" received in March 2005 (and filed away ho hum) with shortfall illustrations of between £19,020 and £37,820.
Current surrender value is approx. £20k - roughly what has been paid in and future value is round about the value of the premiums paid .
Mortgage that this was set against has been repaid probably around the year 2000 - it was kept on afterwards as a savings vehicle.
Is there a site to see what %age of CA endowments are reaching target?
Having spoken to CA I can currently see little point in continuing payments - speaking to Financial Ombudsman Service they recommended the first thing to do (which they are doing on my behalf) is to write a complaint letter and gauge the response from there - any thoughts?

dunstonh

Having spoken to CA I can currently see little point in continuing payments - speaking to Financial Ombudsman Service they recommended the first thing to do (which they are doing on my behalf) is to write a complaint letter and gauge the response from there - any thoughts?

You may find you are time barred. You get three years from the red letter/high risk of shortfall to make a complaint. If they are enforcing the time bar, they could use the March 05 date which would have seen you timebarred in March this year. Take a look at your 2007 statement to see if there is final complaint date mentioned on there.

The FOS will not complain on your behalf. They will just notify the advising firm of your complaint and pass it on.

Do not think for one minute that the FOS are on your side automatically. I was speaking with an adviser the other day who had a complaint and the FOS contacted him to get some information and the guy at the FOS said it was clear the complaint wasnt going to get upheld but they have to go through the motions. This was despite the FOS sounding sympathetic to the consumer. The adviser wasnt happy that the FOS were sounding as if they were encouraing a complaint on a case that was so clearly never going to be upheld.

If it isnt time barred, then they will review your complaint and decide if the documentation is sufficient to justify the recommendation. As most outcomes are based on the documentation level and that is very much an individual thing, there is no way to tell what outcome you may or may not have.

Crazy_Saver

dunstonh wrote: »

Do not think for one minute that the FOS are on your side automatically. I was speaking with an adviser the other day who had a complaint and the FOS contacted him to get some information and the guy at the FOS said it was clear the complaint wasnt going to get upheld but they have to go through the motions. This was despite the FOS sounding sympathetic to the consumer. The adviser wasnt happy that the FOS were sounding as if they were encouraing a complaint on a case that was so clearly never going to be upheld.

I really hope this isn't the case with my complaint dunston. Especially as after waiting 2 years I am still waiting for it to be reviewed by an ombudsman rather than an adjudicator:eek:

mayb_2

I hope so too Crazy Saver

Maybe66 I had my mortgage endowment with the same company who paid up without a murmer when I claimed a missale . You may be as lucky you never know and not need to take it through the Ombudsman service. I think you should put your letter in as the FOS sugests as they will notify the company of your complaint and will follow it up if you do not get an answer within the time frame allowed for this.

Crazy_Saver

I hope so too Crazy Saver

Long time no see mayb.

Have PM'd you.

maby66

You may find you are time barred. You get three years from the red letter/high risk of shortfall to make a complaint. If they are enforcing the time bar, they could use the March 05 date which would have seen you timebarred in March this year. Take a look at your 2007 statement to see if there is final complaint date mentioned on there.

Indeed. I don't have any statements since the red letter as they did not have my new address, and with the paperwork being mis-filed it never got recognised. My fault - though it sort of backs my story of not having all documentation/advise and timescales. CA now have my correct address.

The FOS will not complain on your behalf. They will just notify the advising firm of your complaint and pass it on.

Again, indeed - I had the FOS paperwork through the door this morning (very efficient) but it does state that I need to complain myself. The lady who took my call didn't quite make that clear.

Thanks for your advice - having read parts of this thread (but not hte whole thing) I'd also like to say an overall thank you for the clarity and thought you put into your replies - your advice and particiaption is most welcome.

Maybe66 I had my mortgage endowment with the same company who paid up without a murmer when I claimed a missale .

Can I ask when this occurred? Was it within the "defined period" for raising a complaint?
Hopefully having a Maby66 and a Mayb on the boards won't be too confusing......

mayb_2

This was before many people had realised there was a problem with the endowment mortgages they had and before time bars were introduced. We suddenly had a letter saying we should increase our payments to cover a possibility of shortfall and we talked to the company and agreed to do this. A year later the shortfall had become enormous despite them taking an increased premium for that year so we complained and were immediately given redress and changed our mortgage to a repayment one with another company.