Act now on mis-sold endowments: new article

dunstonh

LynK wrote: »

I bought an endowment poilicy of Scottish Mutual (now Phoenix) in Jan 1988. It was sold to us by a financial advisor. The amount the policy was to make was £20,000 it finishes Oct 2013. In the last statement it is only worth £9,000 so I am looking at £11k shortfall. The boker/advisor when selling told us it was a bit like a savings policy and I would certainly have enough to cover the 20k plus prob in the region of around 16k to spend as we saw fit, was very young and niave and took what he said as gospel.
Am I too late to complain, I have been receiving letters for sometime warning about a shortfall from the company but have done nothing.
Any advice would be gratefully appreciated.

its pre-regulation. So, you have no one to complain to. Consumer protection didnt start until 29th April 1988. Anything applied prior to that date will not be considered for complaint by IFAs, solicitors or accounts. Only tied agent sales are considered and that is on a voluntary basis.

Also, even then, you have three years of first being notified of a high risk of a shortfall to make a complaint. Over 3/4 of endowments are now timebarred from complaint. Plus, having a shortfall is not a valid reason for complaint.

LynK_3

Is there much chance of (9k) increasing in the next 2 years?

dunstonh

LynK wrote: »

Is there much chance of (9k) increasing in the next 2 years?

Unit linked version; yes there is the potential for increase. With Profits version; minimal

Crystal ball warning of course applies. No-one can predict future returns. You just invest on the basis of potential.

LynK_3

Almost certain it's with profits

mumof2luvvlies

Is it too late to make a claim on endowment mortages? Would have been taken out in the 70s? Thanks

dunstonh

mumof2luvvlies wrote: »

Is it too late to make a claim on endowment mortages? Would have been taken out in the 70s? Thanks

Thats 18 years before regulation and it probably isnt a conventional endowment either. So no.

beach_hut

I have an endowment mortgage with Standard Life, which matures in September. We took this out in 1991 with a Financial Broker. We first wrote to the broker claiming mis-selling July 04 and wrote to the the FSA in the same month with a copy of the letter, they responded with a booklet and letter, stating that they were very busy. The brokers denied the claim on 22nd July 2004, and told us that we had six months to apply to the FOS, but remained in correspondence with ourselves until, 13th September 2004, stating that if you remain dis-satisfied with the result of their investigations then you may wish to write to them again setting out further points on which you require clarifications, alternatively you have the right to refer your complaint to the FOS at the address shown below within six months of the date of my original letter of 22nd July, 2004. I do not have a copy of the letter that I wrote to the FOS but it was the 17th February 2005 before I received anything from them, on filling in their forms, I was timed out, saying that I was outside the six months from 22nd July, I cannot dis-prove this as I do not have the original letter to FOS only the 1 to the FSA 01-07-04 stating the I wish to start an action for the mis-sale of our endowment. I was not understanding that the clock was running whilst I was still in communication with the sellers. I know that they stated it, but that is their business and they are dealing with such matters on a daily basis, this for me was the 1st and only time, and to be timed-out by 3 weeks seems hard, do I have a case to appeal, as a novice a I was also confusing my FSA'S with my FOS'S. Many thanks for any help you might be able to give.

dunstonh

wrote to the the FSA in the same month with a copy of the letter, they responded with a booklet and letter, stating that they were very busy.

FSA dont handle consumer complaints so getting sent a leaflet was basically the best you would expect.

The brokers denied the claim on 22nd July 2004, and told us that we had six months to apply to the FOS

So, they have correctly set the timescale.

I was not understanding that the clock was running whilst I was still in communication with the sellers.

The letter they sent at the point they told you that you have 6 months to refer it is the key document. It usually says something along the lines of you having 6 months from the receipt of this letter.

to be timed-out by 3 weeks seems hard, do I have a case to appeal, as a novice a I was also confusing my FSA'S with my FOS'S.

Any line drawn in the sand is going to see people miss it by 1 day, 1 week, 1 year etc. If you move the line on then those that missed it closer to the new line will feel hard done by and so on.

All you can do is put your case to the FOS and see if they feel you have reasonable grounds. Typically, the FOS are quite strict on it and you need significantly good reasons for them to overrule the time bar.

beach_hut

Thank you for your reply, would it be grounds for re-opening the case, if neither FOS or myself can prove what date they were contacted. The 1st letter I received from them was 17th February 2005, but no-body knows when or how I 1st contacted them, by telephone or post? Thanks for your help.

dunstonh

would it be grounds for re-opening the case, if neither FOS or myself can prove what date they were contacted.

No.

To give you some idea, typically are looking at things like prolonged incapacity over the 6 months or death of an immediate relative as reasons to allow it to be looked at later. So, in other words, you need a damned good reason. That or a technicality but it doesnt sound like you have a get out there.