Act now on mis-sold endowments: new article

dunstonh

It may well be worth you getting this revalued as it is not really feasible that the markets will recover that quickly

You are aware that they are up over 20% from their low point? Future is always unknown but asking for a recalc and accepting that it wont be done for a few weeks if they agree at all means a lot can happen in that time and you may lose as well as gain from it.

Another consideration is the policy anniversary date. If that passes, the surrender penalty could go down more, pushing the surrender value up.

The calculation method is defined and it appears they are using it here. So, unless you have any reason to doubt the figures input, then there is no reason for recalc to be agreed.

maby66

Just a quick update.
Countrywide have responded, and in their opinion I am timebarred from making a claim.
I will check what options I ahve with FOS - has anyone pursued a claim outside of the time bar and been successful? TIA.

mayb_2

I think you will find that if it has been properly applied - ie you had a letter saying your mortgage would not be covered and a notice of the time bar period for claiming, and that was followed by a warning letter 6 month's before the end of that time bar - then there is nothing you can do. Unless you are prepared to challenge that in court, something not many can afford considering the position of their mortgage!!

Hopefully there will be a hole in the process you can use as it is not a fair or honest thing the time bar rule. It is to save the finance companies from future claims.

dunstonh

Countrywide have responded, and in their opinion I am timebarred from making a claim.
I will check what options I ahve with FOS - has anyone pursued a claim outside of the time bar and been successful? TIA.

Timebars were a bit hit and miss with the correct application in the early days. Many of those that started the 3 year clock ticking in 2001 didnt follow the right rules but by 2004 the correct proceedures were in place and most endowments that were in a shortfall position found their time bar expired in 2007.

The FOS will not overule a time bar unless you have a damned good reason. That means you coming out with a good reason why you couldnt complain from at least 3 years. The FOS generally accept being incapacitated for 3 years (in a coma for example) as a good example.

Time bars are common place in law as well. So, you may find that option is not available as well.

Tom_Kelly

Has any time bar been challenged yet? If the mortgage or remortgage is still in place it would be interesting to see whether the contract could be deemed to include the endowment element. Particularly if it was arranged by a mortgage adviser

dunstonh

Has any time bar been challenged yet?

Yes. Some of the early ones were weak as they didnt follow the [later] given guidance. In those cases, a later start date was then used and any complaints originally time barred had to be revisited. These tended to be those using a 2000-2003 start date. By 2004 things were being followed correctly and that is why most time bars ran out last year.

yorkie2009

I have just discovered that a company I had an endowment with has, despite being informed by my solicitor, been directing all correspondence to my old address for 12 yes TWELVE years. The shortfall letters etc had all been directed there I am obviously wanting to complain but am worried may be fobbed off because out of time. Any ideas?

mayb_2

I think it will be up to the company to show that you not only had the shortfall letters sent to your proper address but also the warning that told you that you had only 6 months left to make a claim before the time ran out. Having said that I have no doubt they will claim it was up to you to inform them that you had not been receiving the mail and should have known they would be writing to you. I would certainly put in a claim and if they do discard it appeal to the ombudsman.

Having a shortfall is not what entitles you to claim against the company, you must need to have been unaware of the risk that the endowment would not pay your mortgage when you purchased it. The fact that you did not query the lack of information about your endowment for so many years would sugest to me that you were unaware of the risk attached to it and how it worked. They will almost certainly attempt to fob you off but you must persist if you want to have this matter addressed. If your case is a one off with the company concerned it may be more difficult than if the company has already built up a history of such errors - there is only one way to find out so put in your claim and don't be fobbed off.

chic109

Hi, I have an endowment with FP which was sold to me in 1998 by a financial advisor - I don't really remember him telling me that the endowment was based on shares etc & was subject to risk. I certainly don't remember him telling me that there could be a shortfall. (I was 24 and a little naive).

I have just received my yearly endowment statement & it is now a Red Alert. In previous years it has been amber. The potential shortfall is now at 19k (Total policy is for 45k).

As this is my first red alert, I assume that I have 3 years to make a claim - correct? The is a section on the statement to this effect stating that I have until Nov 2011 to make a claim.

I know that the IFA has moved companies, but assume that I contact the company he was working for at the time the policy was sold - correct?

Will the IFA get into trouble for this - he is a friend of a friend!!

Can someone provide the link to the template letters that I have read about.

Thanks

dunstonh

As this is my first red alert, I assume that I have 3 years to make a claim - correct?

Yes.

I know that the IFA has moved companies, but assume that I contact the company he was working for at the time the policy was sold - correct?

Yes

Will the IFA get into trouble for this - he is a friend of a friend!!

Yes. If found that it was a mis-sale, he may be the one that has to pay the redress out of his pocket. It depends on what his status was at the time. It could also impact on his career path (decent firms dont tend to like advisers with complaints on their record - advisers have to declare all complaints to the PI provider and to any future employer).

That said, if it was a mis-sale, then it was a mis-sale and you should complaint. If you are just trying it on (and I dont mean that rudely, but many complaints are "try it on as you never know") then you may wish to reconsider.

Another thing to note is that you would pretty much expect a unit linked endowment to go into red this year. That doesnt mean it will not hit target. That will largely depend on how its invested and the target growth rate required.