Act now on mis-sold endowments: new article

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Martin

First email to this excellent site.

Have been reading your emails for sometime now and finally followed your advice about endowments. Have 2 endowments with Standard Life sold by Nationwide BS. Put in 2 claims using the website recommended by this site and although the second claim took a little more work, after approximately 6 weeks I received a total of £5k (which has been used to reduce current mortgage).

I must admit Nationwide BS and Standard Life were incredibly helpful and very quick in responding.

Thank you for the advice

marto

£ 1593 for filling in a couple of forms now thats a result

curly92

Even though i had paid off my Morgage about 6 months previously, I followed the Links and filled out a form, not expecting to recieve any thing you can imagine my surprise when a cheque for £565 (the shortfall) came through my letterbox. It just goes to show you get nothing for being compacent. Thanks Moneysavingexpert. :beer:

DT489

I have got an offer of just over £4000 from Standard Life. I used the Which letter and found the process quick and easy.

The discussions on the threads has been helpful especially from dunstonh and EdInvestor.

So more decisons, should I cash in the policy now and go onto a repayment mortgage or wait for a possible de-mutualisation and some shares. Anyway I am talking to my mortgage provider about my options with regard to a repayment mortgage.

So thanks to all the posters for their experiences and to Martin for finally galvinizing me into action.

mar0070

I am awaiting an offer from the company for the endowment but while on the telephone (I tend to think about things after!) they wanted to know if we still had the mortgage. Does this mean that because we were left an inheritance and chose to pay off the mortgage that the compensation will be reduced? If so, this seems a little unfair.

pmcg01

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.

It depends on who the company is, but it is worth writing. Careful what you say in the letter, do not just discuss shortfall or the complaint will be declined. Mention how you are risk averse and did not wish risk with the mortgage or understand risk. If the endowment goes past you retirement raise this too, as this is serious. Also say if repayment was not discussed. If they take it on board they will send a questionnaire, careful with that too as some sneaky questions could work against you, do not lie though that would be fraud,

With regards to the paperwork that should not be an issue, they will time bar you or they will not. What the main problem will be is the fact the policy is still in joint names, as long as that is the case, legally you are both entitled to compensation if it is offered and you will not get any unless you both sign it, so get that sorted quick and your complaint in quick too.

pmcg01

It may well do, depends when you paid it off andd how the stock market was then. In theory you could get less, as your loss may be less. Sounds unfair but it is the regulator rules.

majithiah

1st post - seeking some advise!

I am trying to get some compensation for my elderly relatives for 3 mis-sold policies. All of them maturing after they retire (already gone past their retirement age but have to keep working to pay the mortgage!)

1st policy, Royal life (now phoenix) - took out in 1986, target amount £23k, current surrender value £11k. Basis of claim was that the policy matures after retirement and that were told that the policy will pay off the mortgage with a projected £16k surplus.
Claim was partially upheld and have been offered £3k compensation.
Policy maturing after retiring was rejected as it is "time barred" under the limitations act 1980 etc...

for this policy I am pleased to get an offer of some compensation but is there anything further I can do? is it worth going to the FOS?


2nd policy Norwich union - the IFA no longer exists, policy taken out in May 1988. Again grounds for complain were same as above. FSCS say before August 1988 so can't help. I assume there isn't anything more I can do with this one.



3rd policy Standard life through Independent Financial practitioners (Burns Anderson PLC!) - Policy started in 1996, Target amount £40k, shortfall £10k, matures in 2009 well passed their retirement age. Again grounds for complain were policy maturing after retirement and that a repayment mortgage would have been more suitable as they were nearing their retirement age.
claim rejected on both grounds, Policy maturing after retiring was rejected as it is "time barred" under the limitations act 1980 etc...

I am about to fill in the form to complain to the FOS for the 3rd policy. Any helpful comments or advice will be greatly appreciated, specially regarding the "time barred" under the limitations act 1980 etc... rule.

Many thanks

TOBRUK

First of all I hope I am in the correct place for this post- wasn't sure, new to the forum.

I bought a house July 1998 with an endowment mortgage from the Woolwich. The amount on morgage was £36,000.00. I was told that I had nothing to worry about (as there had been rumours regarding endowments) my morgage that I would be fine and possibly would have a lump some at the end. I took my sister with me as she was more up to speed with things like this than I. If there had been any doubt or mention of shortfall I would not have proceeded.

Anyway after receiving a warning letter regarding certain shortfall on my mortgage during the summer (2005) I got very worried. I really did not know what to do so I contacted the FSA and all they did was send me information that I should approach the lender. In the meantime I needed to take care of the mortgage and went ahead and got a part repayment mortgage (NOT WITH WOOLWICH!) to cover the projected £14,000.00 shortfall. I still have the endowment.

One day I saw Martin on tv where he was telling people to write about missold endowments, so came across Martin's website, I took advantage of the 'complaint letter generator' on https://www.endowmentaction.co.uk. and composed the letter. I sent it to the woolwich on 13th January, on the bottom of the letter was - " I would be grateful if you could reply to this letter within 14 days and handle this complaint according to your usual complaint procedures".

I waited, and waited some more - nothing came, no acknowledgement, so on the 21st February I sent another letter (enclosing a copy of the first letter) and this is what I said:

Please find enclosed copy of the letter sent to you on 13th January 2006 regarding my complaint. Almost 6 weeks has gone by since sending you the letter of complaint and I have had no reply or acknowledgement, a time frame to which is unreasonable and unacceptable.

As stated in the original letter:
“I would be grateful if you could reply to this letter within 14 days and handle this complaint according to your usual complaint procedures.”

I would be grateful if you would reply forthwith. If I do not hear from you within the next 10 days, I shall write to the ombudsman regarding the matter.

Yours faithfully


I don't know if I did the right thing, but anyway, I am still waiting for a reply - can anyone advise me on what I should do next AND WHEN?

dunstonh

Are you sending it to the correct address?