Act now on mis-sold endowments: new article

dunstonh

I have recently had another Red Alert:High Risk of Shortfall form Scottish Life, but i am writing to find out if i do have cause for redress for being mis-sold this endowment policy.

When in 1988. You say 14th and 1988 but not the month. This is important as there are two key dates in 1988 that matter. 29th April 1988 was when regulation began. If it was prior to that date then its pre-regulation and as its not an insurance company rep then there is no consumer protection offered. i.e. a complaint would be rejected and you cant take it further to the FOS or anyone (you could the courts but its not likely to work). 29th August 1988 was when the FSCS began and protects you from companies no longer in business. So, if the firm that sold it no longer exists and its before that date, then its end of the road.

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For the benefit of MSE'ers generally, dunstonh, what real legal basis does any endowment provider have for arguing either of those limitations?

The FSA sets the timebars. The timebars used by the FSA are actually better for the consumer than the financial companies.

Tohura_Haque

Hi,

I bought a house in 2003 on interest only with RBS. Subsequently, sold property in 2005 and bought new one in 2006. I don't remember anything about endowment policy....Please confirm whether I would have been missold the mortgage with both lenders and is there any means of claiming compensation????


Please confirm...because someone said I may have been missold and could claim anything between 5 to 25 K....Would really appreciate a response.

Thank you.

Regards

dunstonh

I bought a house in 2003 on interest only with RBS. Subsequently, sold property in 2005 and bought new one in 2006. I don't remember anything about endowment policy

Thats because there were hardly any endowment policies on sale by 2003. By then I think Std Life were the only major brand still offering them and they pulled them in early 2004 IIRC.

Please confirm whether I would have been missold the mortgage with both lenders and is there any means of claiming compensation????

How would you have been mis-sold?

Please confirm...because someone said I may have been missold and could claim anything between 5 to 25 K.

If you dont have an endowment then you cannot have been mis-sold one.

magpiecottage

dunstonh wrote: »

The FSA sets the timebars. The timebars used by the FSA are actually better for the consumer than the financial companies.

That is correct. The FSA rules are that a complaint must be made within six years of the sale or within three years of when the complainant ought to have been aware he had grounds for complaint if later.

That means the complaint must be received by then. Once you have a final response, you have six months to get a complaint to FOS.

By contrast, if you are unable to rely on the FSA rules (which would normally mean going to Court) the firm can use the Limitation Act 1980 instead. This also has a "six years from the event or three years from knowing" limit but there is a further limit known as the long stop. This prevents a complaint for negligence in respect of events that took place more than fifteen years ago regardless of how long it took for this to come to light.

This may sound harsh but the reason is that a defendant is entitled to a fair hearing and this is seldom possible after so long.

magpiecottage

Tohura_Haque wrote: »

Hi,

I bought a house in 2003 on interest only with RBS. Subsequently, sold property in 2005 and bought new one in 2006. I don't remember anything about endowment policy....Please confirm whether I would have been missold the mortgage with both lenders and is there any means of claiming compensation????


Please confirm...because someone said I may have been missold and could claim anything between 5 to 25 K....Would really appreciate a response.

Thank you.

Regards

The 2003 sale is likely to be timebarred. It was sold more than six years ago and it would have been obvious to you when it was repaid in 2005 that you have not paid anything off. That is more than three years ago.

You might be able to claim for the 2006 sale but it is unlikely to succeed because it is almost certain you would have been given a "Key Facts" document which warned you of the risk.

MOTORCYCLE

Dear Friends,

Was mis sold Endowment Mortgage via a Lawyer,
"Phoenix" life who told me they did not sell,Lawyer delayed with
letters then said past time to complain.i.e.No compensation.

Because I do not need the Endowment to pay off that mortgage,
what happens if I simply stop paying it because it's a crap Policy?

It's 25 year policy to run to 2016,stopped paying last year.

Thanks all.:(

Vodkashot_2

Not sure if this is the right forum but here goes.
In 1989 I, like thousands, was told that the BEST way to get a mortgage involved a low cost endowment policy. I,like thousands, was happy that not only would I pay the mortgage but was guaranteed extra thousands to pay for a holiday. So I took out a Scottish Amicable endowment.
Maybe 2-3 years later I stopped paying the policy after paying something like £100 pounds a month. I moved and didn't even keep the policy document.
Although the endowment lapsed 18 years ago, am I entitled to get any of the money I did pay to them back? If so how do I start the process given that I no longer have the policy and I understand that Scottish Amicable are now The Pru?

dunstonh

Although the endowment lapsed 18 years ago, am I entitled to get any of the money I did pay to them back?

No you are not.

cardpark

Hi all,

Sorry if I am on the wrong forum but I have an Endowment Mortgage (£18,000) that was sold to me in 1986, with one year left to run. My shortfall as of 2008 is £7657. I'm pretty sure that it is too late for me to claim now, but one of the bits of advice years ago was to set up a savings account which I have done.

If anyone can help, my question is about the 'termination bonus' which the company (Royal Life/Phoenix) say might be paid at the end of the term. I would like to know very roughly how much, if any termination bonus is likely to be paid out or what is a typical amount and what indeed are the factors that decide whether or not termination bonus is payable?

dunstonh

If anyone can help, my question is about the 'termination bonus' which the company (Royal Life/Phoenix) say might be paid at the end of the term. I would like to know very roughly how much, if any termination bonus is likely to be paid out or what is a typical amount and what indeed are the factors that decide whether or not termination bonus is payable?

The terminal bonus is policy specific. Its based on timescale, target growth rates used and when taken out.

Its largely dependent on the performance of the stockmarket more than any other asset class. Although other asset classes do have an impact. It accrues as you go along.