Act now on mis-sold endowments: new article

fleur38

hi

it would seem that i''m one of the last few who can still claim compensation, time running out soon.

i've read article and been onto Which? endowmentaction site and read all they say too. unfortunately the pro-forma letters that they produced no longer seem to be available. can anyone help? do you have a copy orknow where to find it?

many thanks to anyone who can help.

magpiecottage

When did you take it out and why do you think it was missold?

chuzzle_2

Hi, we took out an endowment policy in 1991 and a further endowment policy out in 1993. Like most people we were first time buyers and had no knowledge of mortgages etc and took out the endowment as it was supposed to pay off the mortgage and we would have a lump sum in our back pocket. We have had "red alert" letters and moved part of the mortgage to a repayment (on advice from building society) thinking that at least some of the mortgage was getting paid off and any shortfall at maturity we would just pay off out of our savings!!! Last week we had a phone call from an agency who said they could make a claim on our behalf (no win no fee) and had a specialist "time barring" department. Their fee if successful is 35% + VAT. Not sure we would be happy the agent getting 42% of any claim, however something is better than nothing!!
Firstly, are we too late to claim?
Secondly, do we try ourselves?
Thirdly, does the agency have a better chance of winning with the knowledge/experience they have (seem to be a reputable company)?
Fourthly, are the agency fees reasonable?

Would love to hear from anyone who can help us please.

dunstonh

Last week we had a phone call from an agency who said they could make a claim on our behalf (no win no fee) and had a specialist "time barring" department. Their fee if successful is 35% + VAT. Not sure we would be happy the agent getting 42% of any claim, however something is better than nothing!!

EMCAS by any chance?

There is no specialist time barring department.

Firstly, are we too late to claim?

You have 6 years from commencement or 3 years from being reasonably aware of a problem to make the complaint (whichever is later). The red alert warnings were designed to activate the timebar count down. So, you get three years from your first notification to make a complaint. Also, you changed to repayment basis. That would also be an event that indicates you knew there was a problem. So, they could apply the three years from that if it was earlier.

Thirdly, does the agency have a better chance of winning with the knowledge/experience they have (seem to be a reputable company)?

Claims companies actually tend to have a lower chance of success and a dodgy one telling you porkies is most likely to send in a scattergun complaint letter listing every possible reason going, most of which would be lies.

Fourthly, are the agency fees reasonable?

For sticking a stamp on an envelope containing a one-size-fits-all template letter that took about 30 seconds to generate. No. The reason it is high is because it now has very little chance of success. They make their money on the ones that havent been timebarrred and there are not many of those left now. The sales reps calling are paid to get referrals. So, they dont care if you have no valid reason for complaint. They are just after their commission. So, they will tell you anything to get you to sign up.

chuzzle_2

Yes, your right it was EMCAS. I get the impression therefore that we're too late to claim plus coz we've acted by shifting part of the mortgage to a repayment that we wouldn't have a leg to stand on. Is it worth sending a letter anyway? Is there a possibility that the government will step in and change the rules, like they did with PPI?

I'm tempted not to sign the agreement with EMCAS after your useful comments. Thank you.

dunstonh

Yes, your right it was EMCAS.

Could tell. They are well known in the industry and have been in the press over their fake complaints. Do a search for EMCAS and you see lots of bad stuff.

I get the impression therefore that we're too late to claim plus coz we've acted by shifting part of the mortgage to a repayment that we wouldn't have a leg to stand on. Is it worth sending a letter anyway?

You are probably too late on either the red alert (was the first one more than three years ago) or the change of mortgage to repayment. If you know if either of these were more than three years ago then its not worth it because the timebar will be applied. Most endomwents were timebarred by 2009. There are only a few stragglers left now and most of these are on or above track and therefore couldnt activate the red alert warning.

Is there a possibility that the government will step in and change the rules, like they did with PPI?

The Govt hasnt changed any rules with PPI. As it stands the FSA actually apply a more consumer friendly time bar than the law. If anything, the presssure is to get it changed to match the law (which would be to the detriment of the consumer) and not the other way around.

chuzzle_2

Yes it is more than three years ago since we got the red alert letter. Asked the building society what to do and they advised on moving half to a repayment. Wish Martin Lewis and this forum was on the go then to give a step by step guide on how to reclaim mis sold policies. The trouble is these companies have got away with it all this time and there should be made to pay back, regardless of time. Well lets hope the FSA get rid of time barring.

Thanks once again.

magpiecottage

chuzzle wrote: »

Well lets hope the FSA get rid of time barring.

The point about time barring is that even if you did not cause the original problem you cannot simply allow it to get worse and expect whoever did originally cause it to pick up the tab, so you are expected to tell them within a reasonable time once you do know. Both the Law and the FSA accept that this should be three years of finding out (or within six years of the original event if that is longer).

Your red letter would also have given you details of how to complain so I do not think it is unreasonable for a firm to now apply the timebar.

chuzzle_2

Thanks for your comment. Why is there time barring on endowments but not PPI? We were as "green as grass" at the time of the red alert letters as we were when originally taking out the policy and panicked at the time thinking we wouldnt be able to pay our mortgage off and so moved part of the mortgage to a repayment. At no time then did anyone drum it into you that these policies could have been mis sold. I think a noticed a small paragraph at the end of the red alert letter about complaining, but certainly didn't hit you in the face to say "hey you could have been mis sold this policy, claim now". I think it should have been made easier for people to make a claim at the time of the red alert letters by way of a simple form to fill in. It sounds like that this was dealt in the same way as it was when originally selling the policies. Also should have been explained better at the time about policies possibly being mis sold. Martin Lewis has been a "god send"!!!!!!!! Pitty he wasn't doing this sort of thing 20 years ago.

dunstonh

Why is there time barring on endowments but not PPI?

PPI is a new issue that hasnt had enough time yet to start the time bar. However, there are now providers that have issued the documentation required to enable them to apply the time bar in 3 years time from the date of receipt of that documentation.

At no time then did anyone drum it into you that these policies could have been mis sold.

It doesnt need to be. Anyone being told their endowment is not likely to pay off their mortgage is likely to complain if they were told it would do. That said, the insurers did write out on multiple occasions reminding people of the time bar date and the ability to complain if they wanted to.

but certainly didn't hit you in the face to say "hey you could have been mis sold this policy, claim now".

Statistically, most were not mis-sold and the insurers wouldnt have been in a position to know whether it was or not. They were letting you know if you had an issue then you need to complain about it by a certain date.

I think it should have been made easier for people to make a claim at the time of the red alert letters by way of a simple form to fill in.

Complaining about something is easy. A phone call, a couple of sentences, a template letter or whatever.

Also should have been explained better at the time about policies possibly being mis sold.

The complaints upheld were upheld due to a failure being identified or getting lucky due to missing or incomplete paperwork (the latter accounted for more than the former). The complaints rejected found no wrong doing. It was actually very easy to get an upheld complaint on endowments as it was largely stacked against the firm. You needed good solid documentation to reject.

Pitty he wasn't doing this sort of thing 20 years ago.

Which? (The consumers association) was around then and they used to recommend endowments and had a best buy section. You can bet Martin would have done as well. He also recommended other products on this site which have had mis-sale issues (SCARPS for example as well as PPI).

Also, the endowment issue started in 2001 but was really in swing by 2003/4. This site was running then. Most endowments were not timebarred until 2007-2009. This was after plenty of coverage. You would have needed to be living on Mars not to be aware of it.