Act now on mis-sold endowments: new article

parkside_stroller

I took out an endowment policy with Friends Provident in 1992. A letter I got recently said that I was likely to get significantly less than I had paid in if I claimed it back. I want to cash it in anyway as the cash would help me out just now but I'm concerned that this might mean I can't claim that they mis-sold my endowment policy if I no longer have one.
It is no longer attached to the mortgage has I now have a repayment mortgage on a different house and only kept it on a savings vehicle/life insurance policy.

They did indicate before that it wasn't doing so well but it is only on the last statement that I realised just how badly it was doing - 3% growth over last year (less than a bank account). Final bonus is likely to be about £30000 short of what my original mortgage would have been.

Anybody able to offer some words on this one?

dunstonh

Anybody able to offer some words on this one?

Get motoring as Friends Provident are time barring like crazy. It may be too late already. You can still put a complaint in if you surrender. Its just calculated to the point it is no longer used against the mortgage.

Last year I stopped paying them when I found out they are well away from the paying of the mortgage, (and the nice little holiday with nest egg we were told we should be expecting upon maturity).

Hope they werent Pru/Scot Am plans...

You can still claim even if you surrender.

atilney

Please advise me!!!!

Was looking up some information on remortgaging and found out about mis selling endowment by mistake.

I have recieved a letter from Sun Alliance in August 2003 informing me I was High Risk and could claim. At the time we were moving house so the letter got file'd away and later forgotten. I did send them a change of address, but have now realised that this cannot have gotten through as I have not recieved anything from them for the last three years.

From reading around the web, I now realize that I am too late to claim (possibly by one month).

Should I try claiming anyway?
Is it not thier fault as I did write and tell them of my change of address?

I have two 33k endowments, both are looking at a 11k shortage:mad:
Alan

boof69

webwiz wrote:

A contrary view.
I find it hard to believe that anyone savvy enough to be interested in this site would really buy a low cost endowment believing that it guaranteed to pay off a mortgage. It was absolutely clear that the final payout amount was not specified at the start, so the blindingly obvious question that anybody with any senses would ask is "well what is the minimum?".

It might seem that it is a good thing for the "little man" if big insurance companies pay them compensation even if it is not really deserved, but this is not correct. The compensation will, in the final analysis, be paid by other little men through lower endowment proceeds, higher premiums, losses in pension funds holding the shares of the insurance companies.

Insurance companies are being forced to pay compensation if they cannot prove that they warned customers that the target amount was not guaranteed and few have good enough record keeping to be able to do that after many years.

I also find it iniquitous that cash compensation is being paid. Even if someone was really mis-sold an endowment to support a mortgage then their mortgage should be converted to a repayment type at the Insurance company's expense. Who really thinks that the recipients of the millions of compensation are using it to reduce their mortgages?

Just shows what sort of people are on this site with comments like that! My parents were sold an endowment in 1986 when things were a little different, there were not so many financial services, the big bang at the stock exchange had not happened and there was nowhere near as much information around. If you actually read the flyer from there company Norwich Union knowing what you now know you would STILL think it was a good deal, it is worded in such a way - they do have the words should and a couple of other little get outs but all in all its a deal. AND their mortgage company wrote to them offering it!!!

boof69

Does anyone out there have the letter that the Woolwich sent out back in the mid eighties saying that they thought you would be better off with a Endowment rather than a repayment? there was a coupon attached which you filled out and sent back, if anyone has a copy it would be much appreciated. Cheers

dunstonh

If you actually read the flyer from there company Norwich Union knowing what you now know you would STILL think it was a good deal, it is worded in such a way

At least they are with a good company like NU and should hit target (majority of NU plans are expected to hit target and pay at least a small surplus).

boof69

dunstonh wrote:

At least they are with a good company like NU and should hit target (majority of NU plans are expected to hit target and pay at least a small surplus).

They have just received the Red letter and they are not even close unless there is an upturn or there is a final payment which there may or may not be!
It does not matter as the mortgage is paid etc. but it is the principle!

dunstonh

They have just received the Red letter and they are not even close unless there is an upturn or there is a final payment which there may or may not be!

A projection letter is not a real indication of what you are going to get. Many times red letters have been sent out a year before maturity only for a surplus to be paid 12 months later.

but it is the principle!

1986 would almost certainly have had the cheaper monthly payment due to double miras, let alone single miras. Plus endowment mortgages did tend to be the cheaper option. There would have been a number of positives for doing an endowment as well as negatives. That side of things often gets forgotten with hindsight.

You didnt mention how they sought their advice. If it was an NU rep that sold it, have they not complained?

FifeSaver

Hi we have complained to Standard Life using the Which form letter. We now have the SL form to complete. Couple of questions for you. First - they did not enclose our files despite being requested in the letter we sent - how do you suggest we deal with this? Second - we sold our house 5 months ago and are currently in rented accommodation while we find somewhere else - is that a problem?

dunstonh

First - they did not enclose our files despite being requested in the letter we sent - how do you suggest we deal with this?

They dont have to supply your files. Indeed, most will not.

Second - we sold our house 5 months ago and are currently in rented accommodation while we find somewhere else - is that a problem?

If complaint is upheld the redress will be calculated upto the point the endowment was no longer used against the mortgage.