Act now on mis-sold endowments: new article

dunstonh

Should I take this complaint further i.e. to the FOS? or do I reply to L&G explaining my dissatisfaction with their stance.

What L&G are saying is that in some places they agree with you and in other places they do not. However, when a calculation has been made to see if you were worse off they have found that you were £3000 better off financially than had you been on repayment basis.

This is not uncommon. Endowment mortgages were often cheaper on a monthly basis than repayment mortgages and that was a common reason for doing them.

So, in summary, they are saying, yes you were not sold correctly but you are not actually financially worse off but better off to the tune of £3000.

cherie_s_d

Thanks Dunstonh,
But what about the life cover issue? is it normal for them not to include the life cover in the redress?
I had 2 mortgages going at the same time one for £60,000 and one for £170,000 for 1 year they asked what one i was living in, I told them the £60,000 the other we was doing up.They based their calculations on £170,000 mortgage, not sure if that makes a difference.
Cherie

turbobob

What do you mean by not including life cover in the redress? Have you seen the calculations?

cherie_s_d

They say in the letter that i recieved back from them, that they have not included it.

dunstonh

Normally, the cost of decreasing term assurance is included in the calculation as the assumption is that you would have life assurance on a repayment mortgage. However, it appears they are saying that they havent included the cost of replacement life assurance. Probably as you were single with no dependents at the time. Including it would reduce the redress payment.

vinno65

Crazy_Saver wrote: »

How come it's just us two and dunstonh left to fight it out all alone these days.

Where's DOTW, Ed, Vinno etc.,:cool:

Vinno is still here!!. However i realised i was spending more time on this site than was doing me good!! The whole endowment thing was taking over my life. But when you feel you have had an injustice against you it makes you seethe. I do pop in now and again just to make sure Dunston is behaving!!
And have read a few of his posts today that a year ago i would have jumped on!!

In the meantime I have had a major fall out with Aer Lingus!. Long story short me and the family missed a flight due to our daughter being ill on the way to the airport. Rather than just let us on the next flight(which had plenty of room) we were charge £500. 6 months later and after letters to the CEO they have finally agreed to reuimburse in the form of travel vouchers (which is fine we travel to Ireland alot). So it goes to show it pays to complain if you believe you are right.

I won't even start about my local council and the planning permission that has been refused twice. Although after getting councillors involved and talking to senior management at the planning department this is nearing a conclusion aswell, hopefully!!

But as I said to my wife a few weeks ago it seems that since i sent my first endowment complaint letter back in 2002 i have been in constant conflict with firms or local councils and it does get tiring and stressful. But i am sure that that is what some of these firms bank on i.e. people getting fed up and quitting.

Anyway i'll sign off
but Dunston I'm watching!!
And remember it wasn't the bankers fault it was the pure greed of us the consumer.
P.S. where has all the money gone?? Someone somewhere must be sitting on a pile!

Regards All

Vinno

vinno65

dunstonh wrote: »

Which is a valid question
You cant. You are now timed out. Once a complaint has been rejected, you have 6 months to appeal it with the FOS. If you dont excercise that option in that time you cannot make a complaint again. The FSA dont handle consumer complaints so wont be interested in helping you.

Not necessarily.Did the rejection letter from the broker tell you that you had 6 months to refer to the FOS?

Also as grounds for complaint, was it ever discussed and recorded at the meeting exactly how you would pay the last 5 years if you had retired?

Regards Vinno

Crazy_Saver

vinno65 wrote: »

Vinno is still here!!. However i realised i was spending more time on this site than was doing me good!! The whole endowment thing was taking over my life. But when you feel you have had an injustice against you it makes you seethe. I do pop in now and again just to make sure Dunston is behaving!!
And have read a few of his posts today that a year ago i would have jumped on!!

In the meantime I have had a major fall out with Aer Lingus!. Long story short me and the family missed a flight due to our daughter being ill on the way to the airport. Rather than just let us on the next flight(which had plenty of room) we were charge £500. 6 months later and after letters to the CEO they have finally agreed to reuimburse in the form of travel vouchers (which is fine we travel to Ireland alot). So it goes to show it pays to complain if you believe you are right.

I won't even start about my local council and the planning permission that has been refused twice. Although after getting councillors involved and talking to senior management at the planning department this is nearing a conclusion aswell, hopefully!!

But as I said to my wife a few weeks ago it seems that since i sent my first endowment complaint letter back in 2002 i have been in constant conflict with firms or local councils and it does get tiring and stressful. But i am sure that that is what some of these firms bank on i.e. people getting fed up and quitting.

Anyway i'll sign off
but Dunston I'm watching!!
And remember it wasn't the bankers fault it was the pure greed of us the consumer.
P.S. where has all the money gone?? Someone somewhere must be sitting on a pile!

Regards All

Vinno

Welcome back Vinno!

I'm sure the reason you feel like you are in permanent conflict is due to the fact that people like us have learnt so much since starting our endowment claims that we feel more confident to tackle the rest of lifes niggles and challenges and therefore go at them with pure gusto!

The only thing that worries me now, is that doing so much research for my endowment claim I probably appear to the FOS as if I have always understood the financial industry the way I do know. I hope it doesn't turn into a "catch 69" situation!

Regards

Crazy Saver

cherie_s_d

dunstonh wrote: »

Normally, the cost of decreasing term assurance is included in the calculation as the assumption is that you would have life assurance on a repayment mortgage. However, it appears they are saying that they havent included the cost of replacement life assurance. Probably as you were single with no dependents at the time. Including it would reduce the redress payment.

Thank you i thought this would be the case.
What do you think my step should be? is it worth me going to the FOS?
I

dunstonh

What do you think my step should be? is it worth me going to the FOS?

If L&G have used the RU89 calculation (which I believe they do now) then there is no point going to the FOS. The complaint has been upheld in your favour so you have won. However, you are not financially worse off and if the calculation is correct (and they should show you the figures used) then the FOS will agree with them.

Not everyone gets redress. Better quality endowments or those with little or no surrender penalties can often result in little or no redress. An endowment can actually be on track to pay off the mortgage using its original target growth rate but still show a shortfall on the annual illustrations. So, you may think its going short and in the future it may do but on the date of calculation it wasnt.