Missold endowment help

sully147

Hi I have recentlely complained about a mis-sold endowment. I took the policy in 1992, I was only 21yrs and a bit naive. I was told it would pay off the mortgage in full and give me a lump sum, although it looks set to have a shortfall of at least 15k. In 2002 the bank in question contacted me and said through their fault my payment was too small (£33) per month, they agreed o add £10 per month to my plan to make up the shortfall. Even with this extra i have been getting added for free, the endowment won't make the amount I was promised. As I have agreed to the extra £10 per month, will this stop me claiming compensation?
All help gratefully recieved
Thanks

Trying_to_be_good

When you say that through their fault the payment was £33 per month too small, do you mean it was already falling short due to lower than expected performance, or that 10 years into the policy they thought they told you the wrong amount at the beginning?

If it was at a different time, when were you first told? What did you do about it then?

There is a time limit to the mis-selling claim system, I think.

sully147

They sent me a letter saying the amount of £33 a month would never have be enough to pay off mortgage, stated they should have charges me more in the first place. I havent got the paperwork anymore, but Ithink when I agreed to them making my payments up to £43 Isighned a disclaimer. However at that time I still thought with this additional "free" payments I was likey to make The £29,000 I was told It would, Instead of the £15K shortfall now estimated.

Thanks for your reply

dunstonh

There is a time limit to the mis-selling claim system, I think.

There is. 3 years from first being notified of a high risk of a shortfall. However, as most NU endowments are not too bad, a significant number never got into red but were in Amber. However, NU did a bit of a naughty a year or so back be removing amber and only having green and red. This effectively started the time bar clock ticking on all their amber plans. They have now re-instated amber warnings. Its hard not to be cynical with that move.

I took the policy in 1992, I was only 21yrs and a bit naive.

Its not about being naive. In 1992 no endowment have every failed to hit target and pay a surplus. If consumer firms like Which? were still recommending endowments at the time, then what hope would you have had?

Instead of the £15K shortfall now estimated.

Its not an estimate. You are given example projections using FSA authorised rates (or lower). Those rates could understate or overstate the end return. As investments zig zag you expect to see improvements some years and reductions others. Also you have to be aware that the projection rates used each year may not be the same as previous years. That can actually increase the shortfall figures even if the endowment has improved in that period (which it wouldnt have done in 2008 as we all know that was a bad year).

It is possible that your actions when you increased the premium could now cause you to not be able to complain. It shows you knew it was running short when you did that. It depends really on the disclaimer and if the time bar was imposed at that point (or thereabouts).