Mis-sold endowment compensation calculation

greamec

Hi all,

We have been lucky enough to be awarded compensation for being mis-sold our endowment. We have been given figures for the amount Lloyds TSB think we are entitled to but we would like to check if it has been worked out correctly. We started paying our endowment in December 1997 and cashed it in in 2003. However, we changed to a repayment mortgage in December 2000. Lloyds have worked out the compensation from December 1997 to December 2000, is this correct, or should they include the extra few years we continued paying into the endowment?

Any help gratefully received.

Greame

dunstonh

to the point you changed to repayment is correct.

Shame you changed your LTSB endowment, many had very low target growth rates. 4.4% was often used and their unit linked funds were not too bad and many have now headed back into surplus again, even those on the managed fund basis. I have recommended a few of these as a "keep" when I reviewed these in the past. Did come across one which was "surrender" though which was set up with just over 7% target growth rate required.

So anyone reading this and has an LTSB or ex Black Horse Life endowment, please do not assume it is bad. It could range from being very good to being bad.

greamec

Thank you for the information. We will accept their offer as it does seem a fair amount.

When we took out the endowment we were quoted figures on a 7% growth rate, which were not realistic. We actually cashed in the endowment on a point of principle as we were so disgusted with Lloyds at the time and were concerned we were throwing good money after bad as it was failing so badly. We used the money to fund a round the world trip which would not have been possible without it, so, thankfully, we have no regrets.

A note for any other Lloyds TSB customers, we initally had a claim rejected a couple of years ago, and it was Lloyds who initiated this claim by reviewing old cases. So there may be hope for others out there who have tried to claim before.

Good luck to everyone who are seeking compensation,

Greame

ChrisS

From what I can gather it's well worth checking that the correct ammount has been offered in compensation. If the data you gave the endowment provider about your mortgage history is in any way incomplete or inaccurate (let's face it many of us will have remortgaged a few times!) then the provider will make assumptions that affect the payout that favour themselves. Perhaps there are dodgy providers that will just offer you a low figure hoping you will take it.

Here is a good article: http://www.thisismoney.co.uk/mortgages/endowments/article.html?in_article_id=400562&in_page_id=55

As well as the compensation checkers that take a % of any payout you can pay a fixed fee to the people that provide the software that most endowment providers use. It's web based, check out http://www.explc.com/cwsonline.pdf

I have just been offered a grand in compo from Norwich Union, a friend got just over 2.6 grand for a similar claim so I'm about to use a service to check the ammount is right myself.

dunstonh

then the provider will make assumptions that affect the payout that favour themselves.

You are given the choice of using the Halifax standard variable rate or providing the real data. That doesnt give any scope for using rates which favour them.

I have just been offered a grand in compo from Norwich Union, a friend got just over 2.6 grand for a similar claim so I'm about to use a service to check the ammount is right myself.

Same endowment provider? Same version product? Same sum assured? same term? same target growth rate? same investment funds? same start date? Same mortgage provider? Same interest rates?

Its not as simple as saying similar.