mortgage compensation

sgts

Last year the financial ombudsman found in our favour for a missold endowment policy. Unfortunatly the financial advisor sold on his business and didn't leave a fowarding address just as the decision was made. We have managed to find the advisors home address and new business address, but are unsure what to do. The ombudsman says they can do no more and our only option is to take him to court. But when the ombudsman made its final ruling, they said that the advisor must work out the level of money due, if any (not sure if we would trust his figures). We have tried contacting local actuarys to work out our figures but no-one is interested. If the amout due is more than £5000 the court cost can get very expensive. Has anyone gone down this route? Any help or advice most appreciated as I feel that he has just been allowed to walk away with no comeback.

dunstonh

How do you know if he sold on the business? he may have just transferred the agencies or the business may have been bought outright (including liabilities). Was he a tied agent in the past or an IFA?

If he was a limited company, then you are taking the company to court, not the advisor. If the limited company is no longer in existence, you cannot take it to court. If he was a partnership or sole trader, then the liaiblities follow him even if he starts up on a new name.

Has anyone gone down this route? Any help or advice most appreciated as I feel that he has just been allowed to walk away with no comeback.

Depending on the answers above, your options are either non existent or limited. Court action is almost a waste of time and money.

sgts

He was a sole trader and the ombudsman said that it would be the advisor that we take to court not the company. Why would it be so difficult to take to court. Thanks for the response so far

dunstonh

If you take the advisor to court, you are going to have to prove it was mis-sold. A greater emphasis will be placed on the documents issued. Certain things which the ombudsman places little emphasis on, such as illustrations and key feature documents (which list risk factors), would have far greater emphasis in a court of law.

The advisor would say that you were given a key features document which listed the risk factors and that the mortgage may not be repaid. You were issued with an illustration showed 3 projection rates, one of which showed a shortfall (assuming yours was post lautro rates). On that illustration it would say these figures are not guaranteed and you could get back more or less than these. You were then given these to take away and you had not only the cancellation period but the period upto the start date of the policy to read those.

What would your response be? I didn't read it wouldn't go down well. So what would you do?

You would be going into court with limited chance of winning and if you lose, you not only face your own costs but his as well. This is why you are getting no interest.

Have you had a review of your endowment policy? You never know, you could be one of the lucky ones with a good one. (although with your luck so far, lets not put money on it yet )