Was I missold?

Hi guys, firstly sorry if im asking this in the wrong place,but...i was sold two mortgage endowments when i was serving in the forces even though i wasnt in a position to buy a house.I was told this was a great way to make money as the endowments would practically double,i was told to buy one every time i got a promotion.One was sold in may 1988 but converted to a joint policy when i married in 1990. Do I have a claim for compensation?Thanks in advance. P.s both have had a red projection letter.

Replies

  • dunstonhdunstonh Forumite
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    You can claim. There is some debate in the industry as to whether these were mis-sales or not as many have genuinely saved a fortune in doing these. i.e. start the endowment so when you leave the forces, you have a shortened mortgage term rather than having to start at 25 years. However, the ombudsman has a different view and generally pre-sale endowments are upheld complaints....even for those that benefited from them.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • The endowments would have had life insurance inlcuded which a sinlge person does not generally need, but a married one might have regarded as a valuable benefit (most people are underinsured). not the best advice given, but In all probability you have gained from the plans. Yes, estimated returns have gone down as we have had lower inlfation and growth than in 1988 (a lower figure may actually be worth more in real terms as inflation is lower!) Those with the savings against their mortgage may have a cause to complain about the shortfall, but you don't actually have a shortfall so i think you should question your motives of complaint before deciding to go ahead. The compensation culture we live in is an insidious animal that may cost us all.
  • Just like to say a big thanks for taking the time to answer my post,cheers guys :D
  • If you fill out the forms your self you have nothing to loose but time and a stamp. My dad works within one of these 'no win no fee offices' they are getting pay out's on the basis that it is cheaper for the companies to pay out than employ more and more people to argue against the case's flooding in. However I did not use my dad's office, it did it all myself and won and 100% was mine for a few hours paperwork and a stamp. Good Luck.
    :j Mortgage free 2014 :j
  • How easy or difficult it is depends on the individual company. IFAs and some others fight every complaint tooth and nail. Others just pay out virtually on demand because they haven't kept their records and can't prove their case.

    It's a bit of a lottery.
    Trying to keep it simple...;)
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