Act now on mis-sold endowments: new article

TonksyRob

Hi, I'm just after some advice on who to complain to:

We took out an endowment from a mortgage adviser working in an estate agents that no longer exists.

It was originally through Scottish Amicable, but has since been transferred to Prudential - do we send our letter to Prudential?

Thanks.

Rob.

dunstonh

TonksyRob wrote: »

Hi, I'm just after some advice on who to complain to:

We took out an endowment from a mortgage adviser working in an estate agents that no longer exists.

It was originally through Scottish Amicable, but has since been transferred to Prudential - do we send our letter to Prudential?

Thanks.

Rob.

Prudential has no liability as they didnt sell it to you. The estate agent has the liability. If the estate agent no longer exists and this sale was after August 1988, then you can refer your complaint to the FSCS.

However, you may wish to see if you are timebarred first. Most endowments are now timebarred from complaint but a very small minority will not be. If you phone Pru up and ask them if your endowment is timebarred for complaint they will let you know. If it is then its game over. If it is not, then you can complain to the FSCS.

Timebarring occurs 3 years after the first notification of a high risk of shortfall. Most Scot Am policies went into shortfall after the dot.com crash but not by much. However, just as they recovered, along came the credit crunch and they took a hit then. So, those that did not get timebarred by 2006 had a second chance to get timebarred three years from 2008/9. Hence why most endowments are now timebarred from complaint.

georges_mummy

I've had a claims company cold call me today regarding missold endowments. I have an endowment that I took out in 1992 but have never claimed as it wasn't linked to a mortgage so I didn't think I'd qualify. I was sold it to use against a future mortgage. The adviser today tells me that this is definitely mis selling and that I hit 9 out of 12 of the eligibility criteria. I'm happy to put a claim in myself rather than give them 43% of any compensation, but they tell me that I only have 1 chance to apply. Is it worth going with a claims company or should I do it myself or am I too late anyway? TIA

dunstonh

I've had a claims company cold call me today regarding missold endowments.

That is unusual. With most endowments now matured or in their final years and those left mostly time barred from complaint, most claims companies have given up. There are a few known dodgy ones making cold calls taking up front fees (that is where they make their money, not the actual complaint).

I have an endowment that I took out in 1992 but have never claimed as it wasn't linked to a mortgage so I didn't think I'd qualify.

pre-selling of endowments was a good complaint reason in the early days of endowment complaints but the view changed later on and even the FOS ended up rejecting them. So, its not as clear cut as it used to be.

I'm happy to put a claim in myself rather than give them 43% of any compensation, but they tell me that I only have 1 chance to apply.

They are correct. However, the use of a claims company will not change the outcome. Indeed, it may actually make it slightly less likely to succeed.

you need to find out if you are timebarred first. Most endowment are. You can phone the provider up and ask them if you time barred from complaint.

georges_mummy

Many thanks for the speedy response dunstonh. I'll give them a ring

lucky_in_love

I've only recently realised that there's a possibility that I might be able to make a claim for a mis-sold endowment (I thought it was only possible if the endowment had matured.) I've been sent red shortfall letters but because I managed to pay off my mortgage some time ago I thought they weren't relevant to me.

The advisor who sold me the endowment never mentioned that the amount I might receive at the end wouldn't cover the amount of any mortgage I took out. At the time I was still living at home and it was sold to me as a savings vehicle which would be used to repay the capital owed on a mortgage. I think he asked me how much I was thinking of buying a house for. The endowment matures in 2016.

Adding to all that is the complication that I don't think the advisor is still trading as an IFA anymore.
Would it be worth trying to make a claim this late in the day or is it even possible now?

dunstonh

I've only recently realised that there's a possibility that I might be able to make a claim for a mis-sold endowment (I thought it was only possible if the endowment had matured.) I've been sent red shortfall letters but because I managed to pay off my mortgage some time ago I thought they weren't relevant to me.

Its probably too late. Over 3/4 of endowments are now timebarred. You get 3 years from your first red warning to make a complaint. Most of those went out in the early 2000s and were timebarred by 2008/9.

The advisor who sold me the endowment never mentioned that the amount I might receive at the end wouldn't cover the amount of any mortgage I took out.

Although the product literature would have.

Would it be worth trying to make a claim this late in the day or is it even possible now?

A claim can only be made if you are dead. If you want to complain then with the adviser no longer trading, you would have to have bought it after August 1989 and make the complaint to the FSCS. They will look at your available evidence and consider your complaint. They will also ask the original adviser (who may well have kept files) for evidence.

They will also write to the provider to see if you have been timebarred.

lucky_in_love

Thanks dunstonh. Apologies for the confusion re: claiming and complaining.

Challenger71

Hi, we took out an endowment mortgage in 1994 and were told it would pay off the mortgage in full and possibly have money left. Then we started to get letters saying there was going to be a shortfall and and we had to make top up payments, when we then had more letters saying we need to pay even more we cashed it in and changed to a repayment mortgage. I believe the endowment was with legal and general the mortgage was with hsbc. I assume I am out of time.

[Deleted User]

Challenger71 wrote: »

I assume I am out of time.

Yes, its too late. Over 3/4 of endowments are now timebarred. You get 3 years from your first red warning to make a complaint. Most of those went out in the early 2000s and were timebarred by 2008/9.

If you are uncertain as to dates, call your provider and ask them...