Act now on mis-sold endowments: new article

DABZY_2

I have recently been contacted by a company to claim back a mis sold endowment even though i surrendered it over three years ago they say that they can use something called an endowment file and more or less guaranteed me success but they want 40 % is this true,we did get a red alert letter but no information about reclaiming can i do this myself.

arrazello

I bought an endowment in 1990, I was barely 21 at the time. I believe I was mis-sold the endowment. I had no idea that I might end up with a shortfall and was told I would end up with more money than I needed to pay back the mortgage. I do not have a policy that has a sum assured, it is not saleable. I understand now that it is quite high-risk based on stocks and shares.
I have been told by the endowment company (Friends Provident) who bought the original policy from London and Manchester that they have no record of the financial advisor who sold me the policy. This FA shut down shop many moons ago and I do not know how to find him. I have also been told that I am time-barred.

Is it too late to attempt compensation? I have had red letters but these letters did not make clear that I was able to make a claim although they quite clearly stated I was able to start an additional saving plan/change policy etc. I wondered if I am able to make a case for mitigating circumastances as my time is taken up (considerably) with caring for a severely disabled son and to be honest, although being vaguely aware that I might be able to make a claim, my priority has always been dealing with the constant demands and battles for my sons care. I actually have a relatively quiet period now and wondered - is it too late?

dunstonh

Is it too late to attempt compensation?

yes. That is the whole point of the time bar.

FP time barred most of theirs between 2004 and 2007 (based on warnings that started to be issued between 2001-2003).

I wondered if I am able to make a case for mitigating circumastances as my time is taken up (considerably) with caring for a severely disabled son and to be honest, although being vaguely aware that I might be able to make a claim, my priority has always been dealing with the constant demands and battles for my sons care. I actually have a relatively quiet period now and wondered - is it too late?

The FOS guide is generally that you have to account for why its taken you so many years after the time bar and why you ignored the warnings. You are not talking days or months here but a minimum of 3 years and probably around 5 years. You would have to have pretty strong excuses for not finding any time in the last 5 years to make a phone call or write a letter of complaint that would take about 10 minutes to do.

I doubt looking after a disabled son is close to being sufficient.

FP wouldnt look at the complaint anyway as they have no liability. The advising firm is gone so the complaint would have to go to the FSCS and the minute they find out its time barred then its rejected.

arrazello

Thanks for the reply although not really what I wanted to hear.

dunstonh wrote: »

I doubt looking after a disabled son is close to being sufficient.
.

Then they clearly have no idea of what is involved. It just comes down to being mentally tired of battling all the time. If they looked at my history (and there will be a written one) of battling for respite, health care and education....
I just assigned priority. I guess long-term finances were lowest down on that list. Cie la vie. But thanks anyway.

kiw

Hi everyone,

was just wondering if anyone had any thoughts/advice on the following points regarding my recent reply to my endowment complaint.

Reasons for complaint:

Q. Repayment mortgage was not discussed?
A. They have on file a Northern Rock application form signed by myself saying that the payment options were discussed.
(I can't remember this as it is a long time ago, but I suppose I can't really dispute this as I did sign the form)

Q. I was single at the time and therefore did not need life assurance.
A. No response in letter.

Q. No fact file was completed at time of sale.
A. They have not disputed this, and I know for a fact that this was not done, however, they have a previous fact file from when I took out an endowment pension 3 years prior to the mortgage endowment, which they say indicated my attitude to risk was on the low side and endowment policies at that time were in this category.
(Not sure if that time means 1994 when I took out the pension or 1997 when I took out the mortgage).

This was an informal letter, basically asking if I wished to proceed with my complaint.

Any thoughts/advice would be appreciated.

Thanks in advance,

dunstonh

Q. Repayment mortgage was not discussed?
A. They have on file a Northern Rock application form signed by myself saying that the payment options were discussed.
(I can't remember this as it is a long time ago, but I suppose I can't really dispute this as I did sign the form)

That pretty ends that option as a complaint as they have evidence, you dont and you cant remember. Paper trumps opinion.

Q. I was single at the time and therefore did not need life assurance.
A. No response in letter.

Thats not a strong enough reason in itself. Although in 1997 you could have done a PEP/ISA without life assurance (if it was an IFA). If it was a tied agent then they have to give the most suitable product in their range and if they only had an endowment then that is what you get. So, you may have more grounds on that on if its an IFA but not if its a tied agent.

Q. No fact file was completed at time of sale.
A. They have not disputed this, and I know for a fact that this was not done, however, they have a previous fact file from when I took out an endowment pension 3 years prior to the mortgage endowment, which they say indicated my attitude to risk was on the low side and endowment policies at that time were in this category.
(Not sure if that time means 1994 when I took out the pension or 1997 when I took out the mortgage).

With Profits was considered lower risk in the 90s compared to now. That has been successfully argued with the FOS in the past so you can expect that one to favour them.

A missing file is a problem for the advising firm. They will probably still reject it on the basis of the overall evidence and no doubt you will then ask the FOS to look at it. The FOS don't automatically uphold complaints without files but will look at a balance of probabilities based on the available evidence. It is these decisions that tend to be inconsistent and hard to call as you never really know what weight that they are going to put on different things.

kiw

dunstonh wrote: »

That pretty ends that option as a complaint as they have evidence, you dont and you cant remember. Paper trumps opinion.



Thats not a strong enough reason in itself. Although in 1997 you could have done a PEP/ISA without life assurance (if it was an IFA). If it was a tied agent then they have to give the most suitable product in their range and if they only had an endowment then that is what you get. So, you may have more grounds on that on if its an IFA but not if its a tied agent.



With Profits was considered lower risk in the 90s compared to now. That has been successfully argued with the FOS in the past so you can expect that one to favour them.

A missing file is a problem for the advising firm. They will probably still reject it on the basis of the overall evidence and no doubt you will then ask the FOS to look at it. The FOS don't automatically uphold complaints without files but will look at a balance of probabilities based on the available evidence. It is these decisions that tend to be inconsistent and hard to call as you never really know what weight that they are going to put on different things.

Hi, thanks for your helpful reply, I think as you say, it's probably not worth taking it any further as I don't think I have got much of a case.

I just need to decide what I'm going to do with my endowment, but that's another story!

Thanks again

buel

Hi,
has anyone here had any success in claiming a missold endownment policy from Barclays?
My parents never received the letters informing them that their endownment policy wasn't doing well until, apparently, their third letter. As soon as my mum read this she wrote to Barclays to complain that they were missold the endownment policy, they argued that she had complained too late and she should have complained when she received their first letter, my mum argued that she lives in a very rural area where sometome the post gets lost or delayed (which is true), Barclays insisted that they sent the letters so my mum had to complain to the Financial Ombudsman where she got a very insensitive adjudicator who dealts with the case (Adjudicators deal with cases before a Ombudsman) and said that the rule is, basically, if Barclays showed proof that they sent the letters then that is good enough so he wouldn't even look at the case of the policy being missold being as my mum hadn't issued her complaint in the given time threshold (from Barclays' apparent 'first' letter)

Now, i have at the ready 3 neighbours who are willing to sign a statement saying that they share the exact same post code as my parents and that they have in the past received post for my parents and have, at some point, also had post missing. I am going to help my parents, if i can, but i must admit that having done a bit of research on the FOS i am a bit aprehensive being as they are known to side with the banks...and i have read that they are funded by the banks...although i dont know if this is true!
Please can anyone tell me have they had any success claiming a missold endownment against Barclays?
And is my parents' claim a non-starter?
many thanks in advance- Buel

mayb_2

Hi Buel

I know how you must feel about this and although the Ombudsman is government rather than bank funded, following recent actions of the government regarding banks, it would be hard to tell the difference!

However, the thing to look for is a final letter to your parents telling them exactly when the cut off date was for making a claim. This should in effect be the third letter if that is the last letter they say they sent. In order to be time barred it would have been necessary for them to give a warning letter saying that there were 6 months left to claim and exactly when the cut off date was going to be. So in effect it is the last letter that should have been sent that you have to worry about not the first. The time bar rules appear to be rigidly applied, however it is important that you do appeal on whatever basis you can as you may have a basis for a claim if you have some extenuating circumstances and/or if the banks failed to send the required warning.

If I remember rightly it has not been shown to be necessary for the banks to prove they sent letters but if you send any anywhere yourself, be sure to get them sent recorded delivery so you have proof of posting. If Barclays can't prove they did send the letters then they can't be adamant that they did You can ask that the Ombudsman looks at your case if you are not happy with the decision of the adjudicator - just write and ask for this to be done.

I wish you all good luck.

buel

Hey there, thank you so much for a clear answer, i appreciate that! I shall find out today regarding which letter exactly my parents' received and then post again! Much appreciated!!!