Act now on mis-sold endowments: new article

marto

earlier to my post they have offered me £1600 thank you thank you thank you MSE

seanko

As Martin says, beware of companies (eg solicitors) that offer to help get you endowment compensation, they are just charging you money for something you can do yourself.

Your endowment company may try to be awkward at first.
If they do that then go to the FOS (Financial Ombudsman Service).
http://www.financial-ombudsman.org.uk/

They sorted out a rather truculent Norwich Union for my parents.
(NB Norwich Union have had an appalling service record in the paset year & wrote to IFAs apologising)

The Consumer Association site is excellent as starting point.

beanybop

Hi to all

We have two endowments, taken out in 1983 and 1986.

So as I understand it we are bu**ered two ways.

1. We cannot make a claim for compensation, although IMHO we were missold as there was never an inkling that the mortgage would not be paid off, and in fact there was a fair bit of talk about the cash that we would receive in addition, and I have some paperwork that supports this. IFA that has gone bust just in case anyone thinks that I have any comeback that route.

2. All the other people missold since 1988 can make valid claims and get compo - good for them - but this has a knock effect to us, as the funds that my money is dependant on are then reduced by their compo, and as a result I get even less in two years time when the first one matures.

I just have to hope for a really good rally in the markets, except most of them are now out of shares and into lower return funds, so little hope there either.

And the market value reduction stops me from just saying 'poke it', so I just keep paying out every month safe in the knowledge that all the premiums will show no increase in the value of my policy payout. And who is to say that there will be any terminal bonus in two and five years time anyway.

Moan over.

T T F N

Karen

dunstonh

I just have to hope for a really good rally in the markets, except most of them are now out of shares and into lower return funds, so little hope there either.

Switch them back then if other unit linked funds exist.

Geoffrey_Coan

seanko wrote:

As Martin says, beware of companies (eg solicitors) that offer to help get you endowment compensation, they are just charging you money for something you can do yourself ....
The Consumer Association site is excellent as starting point.

Well that may be true but at least they get the job done.

I recently put in a successful claim using one of these solicitors, and whilst in theory solicitors are always dispensable (there's nothing to stop you doing your own conveyancing for instance) I found that at least they knew the process and made sure that my case was presented as well as it could have been done.

It was only after I'd lodged my claim that I read the articles on Martin's site and found the CA link, so maybe with that help I could have done it myself, but to be honest I was slightly concerned about tales of Endowment providers having specialised departments skilled at putting would-be claimants off. For me the solicitor took that concern away.

I did shop around for the one that charged the cheapest (capped) fee so it cost me £1500 or so. Money well spent ? I think so as I got back £24,500 of surrender value and compensation which is now sitting in a NewcastleNet savings account earning more interest than I'm currently paying on my discounted mortgage so (unlike the Endowment) is actually appreciating in value.
I'll make additional monthly deposits with the aim of being able to pay of the mortgage at term.

Geoffrey

dunstonh

Cost you £1500? That is disgraceful.

silvercar

I did shop around for the one that charged the cheapest (capped) fee so it cost me £1500 or so. Money well spent ? I think so as I got back £24,500 of surrender value and compensation

How much of the £24,500 was the surrender value? You could have got that for yourself with one phonecall. The compensation is the result of winning the mis-selling case.

noviceratetart

Have been reading these posts with interest as we are currently trying to claim for a mis-sold endowment [we actually have 2 but one is pre-regulation]. I just want to re-iterate what one or two others have said......when we were sold these endowments, there was NO QUESTION of them not paying off the mortgage, the only question was how much extra we would get at the end of the term. I agree that now, with the benefit of hindsight, it does make us look foolish but, like others, we were young[ish!], financially naive and convinced by the 'professional' advice we received. Also, we were also on the brink of 15% mortgage interest rates at the time and therefore the average 8% growth rate seemed quite a reasonable expectation.

Anyway, my question is regarding the 'attitude to risk' question. We genuinely could not recall that our attitude to risk was ever discussed. However, AXA have rejected our complaint and sent copies of paperwork indicating that, on a scale of 1 - 10, our attitude to risk was assessed as 3. We feel that this indicates a cautious attitude and, if anything, supports our claim that we would never have taken out the endowment had we been made aware that there was any risk the mortgage would not be paid off but does anyone out there have any experience of this and/or know of how anyone else has got on with AXA claims? I think our next step is the ombudsman but we are wondering whether it is worth persevering.

Any advice/info gratefully received..

dunstonh

on a scale of 1 - 10, our attitude to risk was assessed as 3. We feel that this indicates a cautious attitude and, if anything, supports our claim that we would never have taken out the endowment had we been made aware that there was any risk the mortgage would not be paid off but does anyone out there have any experience of this and/or know of how anyone else has got on with AXA claims?

On a scale of 1 to 10, risk 3 would seem to support your case and not theirs. For example, we use a 1-10 risk scale and 1-3 means virtually no risk. certainly not for unit linked or with profits funds. unit linked starts at 4, with profits with no MVR at 5 and with MVR at 6. Of course, their scale could be different but it would be quite a disjointed scale if 3 would allow medium risk scale investments.

What investment fund(s) are you in? Do they match risk scale 3?

If no, then you have a good claim against them. Tell us what they are if you want a judgement on it.

noviceratetart

Thanks for this. You confirmed what we thought re attitude to risk. AXA gave us no info about their risk scale when they responded to our complaint! Err, no idea what investment funds we are in! Will check when husband gets home and would be interested in your view. Back later.....