Act now on mis-sold endowments: new article

~Brock~

dunstonh wrote: »

My opinion is that they are dodgy as the claims are lies and the lack of MoJ authorisation means they are trading unlawfully and as they have only been going for a few months are probably short of money and are saying things like this to bring in some cash.

As they are based in Scotland they do not need to be authorised by the MoJ, providing the services they undertake do not take place in England or Wales.

WorriedofSurrey

Hi

I wonder if anybody could offer some guidance. I have recently been successful in claiming on two mis-sold endoment policies with the Halifax. I have also tried to claim with Scottish Life. I have had a reply today saying that as this was sold via a financial adviser that they cannot help. Can you tell me what I do next, can I make a claim against the financial adviser?

many thanks
Wos

dunstonh

I have also tried to claim with Scottish Life. I have had a reply today saying that as this was sold via a financial adviser that they cannot help. Can you tell me what I do next, can I make a claim against the financial adviser?

You claim against the adviser. Scottish Life have no liability as they did not advise you.

WorriedofSurrey

dunstonh wrote: »

You claim against the adviser. Scottish Life have no liability as they did not advise you.

Thank you for your response.

Just reading back trhough this thread, if the policy was pre-1988 I take it I cannot claim against them?

Thanks again.
WoS

dunstonh

Just reading back trhough this thread, if the policy was pre-1988 I take it I cannot claim against them?

Correct. If it was taken out before April 88 then you have no avenue to complain to as it was pre-regulation.

jb007uk

We signed in late 1988, we were not told there could be a possibility of a shortfall. We were actually told we would have a lump sum once our mortgage had been paid which is in 2013.

Exactly 3 years ago I contacted the FSCS and at the time they turned down our claim telling me that we have benefited by over £3k compared to the position that we would have been in had we taken out a repayment mortgage. We have now received a letter from the pru telling us that we are going to have a minimum shortfall of £10k on the original £48k

What amazes me is how people that I know have received many thousands of pounds when surely different parameters seem to come into play. It would appear that if one were sold an endowment by a Bank or BS they simply paid up, however those of us who dealt with Financial Advisors and who were missold have little recourse when trying to get compensation from the FSCS. So my point here is that surely if I have had purchased an Endowment from a Bank/BS then I not now be out of pocket.

dunstonh

Exactly 3 years ago I contacted the FSCS and at the time they turned down our claim telling me that we have benefited by over £3k compared to the position that we would have been in had we taken out a repayment mortgage. We have now received a letter from the pru telling us that we are going to have a minimum shortfall of £10k on the original £48k

You appear to be getting things mixed up. The projections are just examples, not guarantees. So, when you complained, even if your complaint was upheld, you were financially better off so no redress was payable.

Now, after a major financial crash, you have slipped, possibly temporarily into a shortfall position. It is not a minimum shortfall or a maximum. It is just another example shown at that particular rate.

What amazes me is how people that I know have received many thousands of pounds when surely different parameters seem to come into play.

Correct. If you complained when the markets were at their lowest, the chance of a redress payment was much higher than when the markets were at their highest.

It would appear that if one were sold an endowment by a Bank or BS they simply paid up

The reason is because banks were the worst at record keeping.

however those of us who dealt with Financial Advisors and who were missold have little recourse when trying to get compensation from the FSCS.

Thats becuase IFAs tend to keep better records and are statistically less likely to mis-sale than banks (IFAs account for just 2% of complaints to the FOS). In your case, when you complained, your endowment was in a position that you were financially better off so you were not entitled to anything.

So my point here is that surely if I have had purchased an Endowment from a Bank/BS then I not now be out of pocket.

You are not out of pocket either way. Had you switched to a repayment mortgage at the time you made your complaint you would have been financially better off than those that had been paid redress. Instead, you chose to continue with the risk based option.

As it currently stands, you are still better off than those that went with a bank and got paid redress and kept their endowments running rather than switch to repayment. Yet you incorrectly seem to think you are worse off.

fleur38

hi. can anyone advise me? i have 2 endowments - 1 taken out in 1993 the other in 1997. i have received red letters but didn't really understand what they meant and have only recently received a statement showing a huge shortfall (i would have done better sticking the money in the bank).
2 questions: am i too late to reclaim ?
i really need the money at the mo having been made redundant and so was thinking of cashing them in/selling them on. if i do so does that mean that i will not be able to claim compensation for misselling ?

when i bought them i was told i woud get a lump sum leftover and i was not even offered a repayment mortgage or any advice on that - otherwise i would have gone for that.

dunstonh

2 questions: am i too late to reclaim ?

Potentially. Over 3/4 of endowments are now time barred from complaint. However, you could be in the 1/4 that are not. Phone the insurer and ask them if you are time barred from complaint or not.

i really need the money at the mo having been made redundant and so was thinking of cashing them in/selling them on. if i do so does that mean that i will not be able to claim compensation for misselling ?

No that will have no impact. However, endowments are not included in any means tested benefits. If you cash them in though and are in receipt of benefits, you then have to declare them as cash (savings) and that could reduce the benefits you receive.

fleur38

thank you. i will contact them.

is there any advice or personal experiences on this site regarding selling endowments ? i have looked but can't find any.