Act now on mis-sold endowments: new article

dunstonh

but how do I know whether their calculation is fair and just?

The calculation is defined and they will give you the details they have input. If the details are correct then the outcome should be.

if I find it not too be fair do you think that the Ombudsman would make them award a higher amount?

The FOS will take about 3-6 months to verify they have used the correct calculation. You will be told to accept the figure. However, if the market values have gone up (as they have done in recent months), they may recalculate the figure and pay you less. so, its not normally worth risking unless you think the calculation is wrong or has used the wrong data.

rebecca1

Thanks for the reply DunstonH.
Phoenix seem to have worked out the compensation by taking the amount I would have reduced my mortgage loan by if I had a repayment mortgage and then minused the cash in value.
Is this the only formulae that can be used to work out compensation?

I only have 2 more years to go on the endowment . If I take the compensation, do I still keep on paying the endowment premium every month ?

Thanks

Rebecca

dunstonh

Phoenix seem to have worked out the compensation by taking the amount I would have reduced my mortgage loan by if I had a repayment mortgage and then minused the cash in value.

That is the normal method.

Is this the only formulae that can be used to work out compensation?

No. Although it is the one used if your complaint is that you should have had a repayment mortgage.

If I take the compensation, do I still keep on paying the endowment premium every month ?

Its up to you. Its paid on the basis you switch to repayment mortgage but they dont force you.

rebecca1

I did not say that I should have had a repayment, Phoenix made that assumption themselves.

My main gripe was that we were told that the not only would the endowment pay off the mortgage, but we would also have a nice bonus on top at the end of the term taking the 'with profits path'

Phoenix have accepted my complaint but I would like to get some unbiased independent advice as to whether they have been fair DunstonH.

Thanks for your comments though - much appreciated.

Rebecca

rebecca1

DunstonH

I forgot to mention that I originally posted on this site 12/2/09 to which you answered the following:

Quote:
Scottish Mutual for £6250.00 taken out 28.06.1988
I wrote to Scottish Mutual and they said there was no selling agent for this policy - does this mean that I have no one to claim against so I can't make a claim? I do seem to remember sitting in an office being given advice from somebody!!
It means that there was no adviser involved in the sale of the policy or no agent exists for it. As its pre August 1988 you dont have FSCS protection so you cannot complain to anyone.

I am so glad I went ahead and complained.

Regards
Rebecca

dunstonh

I did not say that I should have had a repayment, Phoenix made that assumption themselves.

No. Thats not what I mean.

My main gripe was that we were told that the not only would the endowment pay off the mortgage, but we would also have a nice bonus on top at the end of the term taking the 'with profits path'

In which case you are saying that you wouldnt have gone with endowment but would have gone with a repayment mortgage. Your complaint has been upheld and they are now putting you in the position you would have been had you gone with a repayment mortgage.

I am so glad I went ahead and complained.

You got lucky. If the provider cannot show it wasnt sold by another company and there is no paperwork to show it was execution only then they are on thin ice. Maybe their quota this month balanced in your favour. The pre 1988 issue only applies if you dont use an agent of the company.

mayb_2

Sounds to me that the best advice is that if you are unsure of whether your complaint can be made, but you know it was a missale - go ahead anyway. Well done Rebecca for hanging in there. Unfortunately most complaints concern the lack of a lump sum after the mortgage was to be paid off but there is no way of getting redress for these, although it is more than possible to work out a ball park figure of how much these were claimed to be by the sales people involved. You don't have a figure in writing so it is assumed that they didn't make that claim.

rebecca1

Thanks for your input too Mayb.

Although as DunstonH said I 'got lucky' I'm glad I hang in there.
I don't agree with how the compensation is worked out, I spoke with the FOS today and apparently companies work out the compensation by following the RU89 guidelines by the FSA . However, some compensation is better than nothing

As long as companies follow these guidelines the FOS seem happy, although they will still look into your complaint if you want to take it further.

I have some decisions to make now - Once again - many thanks for your assistance Mayb & DunstonH.

Rebecca :j

RRatchet

Hi

I too like many others have just received my annual endowment statement from Standard Life. It's performance like many others is, for want of a better word, rubbish (well I know plenty of words none of them printable). I think I've missed the boat for claiming compensation ie I'm probably time-barred, however I do believe that I was mis-sold. When I bought my flat in June 1992 there were the beginnings of disquiet wrt endowments so on the prompting of my then partner I asked about the likelihood it not paying out (it worried me) and got the sales speil; it's never happened before, is very very very unlikey, big bonus on top etc. So needless to say I went for it. The mortgage advisor I used seems to have disappeared. Since then I got married to some-one else who happened to have a small ammount saved and the mortgage was paid off. So even if I'd complained on time and the complaint had been upheld I'd probably have been awarded £0. I was lucky as the person I married had some money if I'd married some-one as impecunious as me we'd be in dire straits just now with no means of repaying the mortgage.

I've now got a policy that we were treating as savings, which appears to be like throwing good money after bad or a very expensive life insurance policy, take your pick.

I'm going to apply the calculations that others have posted to try and work out whether it is worth keeping going as a savings policy. I've got a feeling from reading the posts of people in similar positions it won't be very clear cut and will rest on, do I think the market is going to improve in the time left (until 2017). If I've got any problems working it out I'll ask the experts who watch this thread and give good advice.

Thanks

mayb_2

Definately ask the question from someone who understands these things RR I was told that if I kept paying into a pension endowment I would just be throwing good money after bad - not standard life though. I got my money back by cashing it in but saved £50 per month for three years by not paying it anymore which meant I saved a bit more than I would have done. What a waste of money that was - £50 doesn't sound much but it cost us dearly in the beginning when we had to scrimp and scrape to get it together!!