Act now on mis-sold endowments: new article

dunstonh

mbeamethyst wrote:

Thanks for the update on this but it does in fact leave me more confused.

I have had a previous claim upheld and the compensation calculation did not take any account of a surplus or shortfall on the endowment. It took account of the value of the mortgage against a repayment mortgage and compared the outgoings for each. The shortfall/surplus amounts were not documented.

Also not sure how the endowment can be surrendered or cancelled without our agreement?

It doenst look at the shortfall/surplus. It calculation includes the surrender value of the endowment. If an endowment is above track, it would have a higher surrender value than one below track. So you wouldnt see surplus/shortfall mentioned. Just the surrender value.

Just to confuse matters a little more though, surrender values can be misleading as well. For example, some endowments have no surrender penalty after 10 years but others have them until year 15 or even the year before maturity. Potentially an endowment on track for large surplus could have a smaller surrender value than a similar endowment on track for a large shortfall. The penalty on the good one could be higher than the bad one wiping out many of the gains.

Endowments can be voided and premiums returned plus interest with certain complaints. As the insurer is voiding the policy, technically it never existed so you cant ask to keep it.

jacquit_3

I originally posted on the old thread just before Martin closed it so I thought it might be worth posting again:

I've been unsure whether to make a claim or not but now I've read all this I've decided to go for it..... nothing to lose right?

I need a bit of advice first though, my endowment was sold by an IFA in 1996 and is a managed fund with Standard Life (ie no windfall now it's de-mutualised but that's another story!). I'm 99% sure my adviser mentioned that the plan may not meet the target because he said he had to tell us that BUT.... he said that will never happen!
Do you think i will lose my claim because he did mention, albeit briefly, that there may be a shortfall?

thanx
Jacqui T

kingl_2

Thanks to all that have replied to my question. Jorayner, daughter is doing very well now and we are optimistic that she will have a 'normal' future, whatever one of those is.

Anyway I would like to add that SL have pulled their file notes out that show that BS introduced us and they paid them commission. BS have pulled the mortgage application out that states 'execution only', so they are claiming no advice was given on the day we made the application and we must have had independant advice previously. Of course we know that the mortgage application was made AFTER a visit to the BS who told us we wanted an endowment and introduced us to the rep in their offices. It is obvious that no advice was given on the day the mortgage application was put in, in had already been given. Rather foolishly the BS notes also refer to the earlier dates. My inclination is that our claim is with the BS.

The way we have been treated by SL and the BS in particular has really upset us, which is why I think we will throw in the towel. If they had just said sorry and given us a paltry amount we would have been satisfied, but in effect they have accused us of lying.

Jorayner

Kingl,

Ask Standard life to send you their file notes. Then write a letter enclosing it to the BS. If they turn you away , you can then go to the ombudsman.

I agree it is a lot of hassle that you could do without now, however , I refused to be beaten by bureaucrasy. If my claim is not upheld I wouldn't want to think it was because i did not explore all avenues.

Good luck

johnnycab

johnnycab wrote:

1. I changed my mortgage from Barclays to RBS in 2002 - but continued to pay the premium on the endowment policy - do I still have a chance to appeal for compensation? If so, does the above affect my chances of getting any compensation?

I would really appreciate it if someone can tell me - if I have a case or not?

defender_of_the_weak

Switching lenders makes no difference to your case for mis-selling.

johnnycab

defender_of_the_weak wrote:

Switching lenders makes no difference to your case for mis-selling.

Does the original lender calculate the compensation till the point where mortgage was held with them?

Jorayner

Stumpy wrote:

Did Lloyds send you a questionnaire to fill in, or did they just refer you directly to Bradford & Bingley? I'll be mightily annoyed if I have to fill in this huge questionnaire, just to be bumped on to another firm!

Llyods passed me on without the questionnaire, but then B & B got us to do one, before they passed us on again.

It was nice though that when eventually I got the necessary evidence from Standard Life to go back to B &B the questionnaire was already done.

They are working on it now as they have phoned for clarification. I can't wait for the letter, after all this work.

racheljayneaustin

Hi everyone,

Wow this is all so confusing!

We took out our endownment/mortgage back in 1997 as first time buyers, in the past year or so we had our "amber letter" and were asked to up our payments, yet when we applied we were promised" cash sums" on final payment of our mortgage.

We applied to royal london for compensation but they turned us down. I din't "appeal " to the FSA as I didn't think it would do anything. ( I am so niave ). This was now 7 months ago, they said we had to appeal within 6 months, so am i right in thinking there is no point at all in doing anything now??

Any help or advise appreciated!

dunstonh

We applied to royal london for compensation but they turned us down. I din't "appeal " to the FSA as I didn't think it would do anything. ( I am so niave ). This was now 7 months ago, they said we had to appeal within 6 months, so am i right in thinking there is no point at all in doing anything now??

You have 6 months to go to the FOS (not FSA) unless there are mitigating circumstances. Otherwise you lose your right to appeal.