Act now on mis-sold endowments: new article

FifeSaver

Thanks for that dunstonh. I suppose I was suprised not to get files as teh Which tter included that request so I presumed it was a standard action. Indeed I had thought this amouted to a data subject request for access to files. No matter though, your response suggests there is nothing untoward or sinister in L's response.

You advice on the paid off mortgage is comforting and confirms what I thought.

Cheers.

I will post on the successes board once we here the result.

dunstonh

I suppose I was suprised not to get files as teh Which tter included that request so I presumed it was a standard action. Indeed I had thought this amouted to a data subject request for access to files.

There was a court case some time back and the outcome of it was that when complaining you cannot make a data subject request in the hope of finding information which could then be used against the company. Since that ruling companies ceased giving out the files.

skidsy

I'm similar to Atilney. I too received a letter in 2003 from R&SA stating how much they anticpated the shortfall to be on the endowment policy I have with them.
I only changed my address yesterday but all letters and annual updates have been received at my mothers address as I was single when my (now) wife and I took out the policy.
The 2003 letter is the latest one that I have in my possession and it doesn't mention compensation at all. I have recently submitted a claim but looking on here I suspect that I am in fact time barred

Our policy is a five step Homestyle taken out in 1990 for 25 year term.

What are our chances of a result?

Thanks all
Skidsy

groovecrusader

In around 1996 I was advised by a financial advisor then working for General Portfolio to change from a repayment mortgage to an interest only with a building society, and save for the capital by paying into stocks and shares related managed funds using tax free PEPs (now ISAs). I was given the 6 - 9 - 12% growth scenarios, and was advised that by paying a little extra into this could pay off my whole mortgage in around 15 years, given the 9% scenario.

Is this the same as an endowment, and have I got any grounds for complaint does anyone reckon (given that it wasn't sufficient to pay off my mortgage early)? GP policies were swallowed up by Gann, then Family Life.

BR

dunstonh

In around 1996 I was advised by a financial advisor then working for General Portfolio to change from a repayment mortgage to an interest only with a building society, and save for the capital by paying into stocks and shares related managed funds using tax free PEPs (now ISAs). I was given the 6 - 9 - 12% growth scenarios, and was advised that by paying a little extra into this could pay off my whole mortgage in around 15 years, given the 9% scenario.

The investment principle applies to PEPs/ISAs as it does with endowments. The PEP/ISA route is just a better way of doing it. I still do it that way today with a minority of cases.

You say it was an IFA but if the adviser worked for GP, then it wouldnt be an IFA.

The 6,9,12% were the required rates to be quoted by the regulator at that time (now 5,7,9) and whilst 9% has been achievable with funds available to IFAs, i wouldnt expect it as much with tied agents.

If you were not made aware of the risk you can complain but if you were, then you cannot.

Whilst you are at it, you should get an IFA to review this ASAP. Tied company funds are usually not good enough when it comes to investing and a transfer of funds into a fund supermarket with a better selection could offer you far greater potential and it may even lower your charges.

The concept of what you have done is good when invested correctly. Problem is that with a tied sale, it is unlikely.

caleb2003

chaos2 wrote:

Hi there,

I hope someone can give me some advise what my next step should be. Have complained to L&G about mis selling but now have been turn down.

1) Risk Atttidue--- as 3/9 (cautious to speculative) which indicate low risk investor. So With Profit funds is sutiable.

2) Was told that I was advise about repayment method, but the repayment method that was discuss was interest only, either With Profit or Pep. That was what the advisor said at that time.

3)After reviewing our circumstances, L&G concluded that we can meet and afford extra interest should interest rate rises, which indicate that we can meet any short fall of the returns.

Thank you

I have a similar policy with L&G and applied and was rebuffed by them so took it to the ombudsman (as advised by the very helpful DunstonH) and after 2 months they have come back and said that they believe it was mis sold as it was not the right product for my circumstance. I have accepted this and they said that L&G will send me an amount of compensation, so it is well worth taking further.

One thing I would like to know is, how do I work out that their compensation is fair? I haven't recieved it yet but considering they fobbed me off in the first place then they could fudge it slightly in their favour again.

My policy is for 28400 taken in 1990 with a projected shortfall of £12000.

Thanks

sjcjd

dunstonh wrote:

Hope they werent Pru/Scot Am plans...QUOTE]
Hi, first one in 1990 was Friends Provident and the second one in 1995 was with Alba Life.
Thanks for the response. Going find all the paperwork!

Kaz&Mike

Hi, my first posting on this forum.

I used to work for the Halifax and even to us employees endowments we were told were the best thing since sliced bread. On this understanding we proceded with and execution only endowment, transferring over from a repayment mortgage we had had for about 15 years at the time. This was in 1992.
In 1994 we took out a further advance to do an extension. We were advised we had to have a seperate endowment for this.

Both endowments are with Standard Life.

I don't know if I have a leg to stand on as it was an execution only endowment and do not know who to write to about it. I hope someone can help me.

Many thanks

andybars

kfn1502 wrote:

This is a bit of a long shot, and I'm hoping somebody will be able to help out with this dilemma. Or refer me to a free site/agency who could give advice, if possible

I have a friend who, with her then-husband, took out a second endowment mortgage (they paid off their first to buy a bigger home when babies started coming) in 1990. Her understanding of ANY financial matters is limited and her recollection of the original selling details is vague. However, what she does remember is understanding that at the time the mortgage would be due to be paid off, the endowment policy would have enough money to cover the mortgage AND provide about the same amount for them to have as a cash bonus.

During her marriage, her now ex-husband looked after all the financial affairs - paperwork etc - until they separated in mid-2003 when she suddenly had to look after everything for herself (as well as four children, the youngest aged almost 3). She received a letter in about August 2003 saying there was a projected shortfall in the endowment policy - but as she didn't really understand it, and was overwhelmed with everything else she was coping with at the time, she just left it.

At some point during their marriage, her ex-husband had a 'clear out' and threw away all paperwork which he deemed unnecessary. We suspect this included anything to do with the endowment as we can't find the policy document (or indeed a whole stack of other important documents which would be useful to have!).

She & her husband have finally divorced (not especially nicely) in June 2005 and he is not being at all helpful in anything. The court order states (among other things) that he's supposed to assign the endowment policy to her, but he's seeking leave to appeal the decision and therefore won't sign it.

My understanding is that she would need to complain about mis-selling of the endowment policy by the middle of this year (ie three years since becoming aware of a problem). My question is, does she need to have her ex-husband participate in the complaint since he is still a joint policy holder?

Would she be able to submit the complaint forms without his signature, but with an explanation of the facts?

Thanks so much for any help you can provide about this.

I used to deal with endowment complaints for a number of banks/insurers
They should all accept a complaint from one party on a joint policy due to "joint and several liability", however will probably not pay compensation in a sole name.
Most will insist on a jointly signed acceptance form, some will pay half the compensation in each name (If the complaint is upheld and there is a loss, neither of which are necessarily the case). However if your friend has a court order of assignment, if her complaint is upheld and compensation is due, contact the legal department of the company and explain the situation, generally the people looking at the complaints are much more helpful than those that sold the policies.
HOWEVER MOST INSURERS ARE TIME BARRING COMPLAINTS AS SOON AS THEY CAN, COMPLAIN NOW AND THEN WORRY ABOUT THE FINE DETAIL

andybars

Go to the ombudsman - the firm has a duty to produce paperwork to support the sale. In the vast majority of circumstances if they cant do this they are very,very likely to uphold your complaint

andy