Endowment Shortfall - building society employee

beeth1989

Hi, as with many others I have a shortfall on 2 policies I took out in the 1980's. I followed the advice to claim mis-selling. At the time I took out the mortgage I was employed by a major building society. Any staff member who took out a policy was given enhanced benefits ie commission offset the premium so the policy was a few quid cheaper each month. When I tried to claim on the shortfall the ombudsman said that because I was a staff member at that time and received the enhancement, no claim could be made. The policy was sold execution only, we never had interviews and advice just filled in the mortgage applications. My post was secretarial/admin at that time so I was not a mortgage 'expert' or 'adviser'. My circumstances are now that I only have 5 years left on the policies, with an ever increasing shortfall and I have had to retire on health grounds and will probably never work again. I feel aggrieved that the endowment company are getting away with this and wondered if I can pursue this any further. Anyone with any advice?

Stesal

Hi,
Like so many others i was sold an endowment without it being properly explained to me at the time. I managed to claim back some monies about 3yrs ago, however, my mortgage is due to be completed in 2013, & the other day i received another letter from my policy holders telling me that
a), they have now changed the way they work out the Bonus's??
b) that my expected shortfall (AGAIN) looks like it will not be worth what was last "quoted"??
All i all, it was an endowment which was supposed to yield £30000.00p with estimated bonus's of approx. £3000.00p?
When i made my claim, i received £3000.00p for the projected shortfall? I was also advised that i should re-arrange my Mortgage to take account of any shortfalls? This i did, by converting it to a straight forward Capital Repayment!
The last letter i received now tells me that when it matures i can expect approx. £15000.00p?? That is HALF of the original???
So after converting my mortgage (AT A FAR MORE MORE EXPENSIVE OPTION), i now find that i will only get back HALF of the original Projections?
What i need to know is:, Can i again make representations against my original provider, seeing as the £3000.00p i received is nothing like what i am about to loose?
I seem to appear to have lost out no end on this scam!
Thanks

ILW

beeth1989 wrote: »

Hi, as with many others I have a shortfall on 2 policies I took out in the 1980's. I followed the advice to claim mis-selling. At the time I took out the mortgage I was employed by a major building society. Any staff member who took out a policy was given enhanced benefits ie commission offset the premium so the policy was a few quid cheaper each month. When I tried to claim on the shortfall the ombudsman said that because I was a staff member at that time and received the enhancement, no claim could be made. The policy was sold execution only, we never had interviews and advice just filled in the mortgage applications. My post was secretarial/admin at that time so I was not a mortgage 'expert' or 'adviser'. My circumstances are now that I only have 5 years left on the policies, with an ever increasing shortfall and I have had to retire on health grounds and will probably never work again. I feel aggrieved that the endowment company are getting away with this and wondered if I can pursue this any further. Anyone with any advice?

Cannot see how you can claim you were badly advised, as no advice was given.

EdInvestor

Stesal wrote: »

What i need to know is:, Can i again make representations against my original provider, seeing as the £3000.00p i received is nothing like what i am about to loose?
I seem to appear to have lost out no end on this scam!
Thanks

No, you can't go backfor more.

dunstonh

The policy was sold execution only, we never had interviews and advice just filled in the mortgage applications.

So you never got bad advice and were not mis-sold.

What i need to know is:, Can i again make representations against my original provider, seeing as the £3000.00p i received is nothing like what i am about to loose?
I seem to appear to have lost out no end on this scam!

No. You personally made the decision to stick with the risk based option after receiving redress that you could have used to put you back in the position you would have been had you been on repayment basis. No-one told you to stick with the risk based option. The payout was based on you going with the repayment mortgage.

There is no scam. You were paid your money but chose to continue the risk and the risk hasnt paid off. If there was a scam, it would be the number of try-it-on complaints by people hoping to get money when they were not mis-sold and then spending it on holidays and consumer goods.

What did you do with the redress payment before?
why did you not switch to repayment basis but continue with the risk?