Endowment Misselling Complaints Deadline

FOSman

Time bar rules are there to limit the liability of firms when the Financial Ombudsman Service looks at a complaint.

When the FOS looks at a complaint, it does so on behalf of, but also independent of the FSA. It must abide by the rules of the FSA.

When the FOS looks at a complaint, IT IS NOT A LEGAL PROCESS. This is why the 15 year limitations act 1980 does not apply. But in its place, the FSA have created the time bar rules.

If you don't like the process, then either lobby your MP to change the rules, or take the firm to court. Nobody forces complainants to use the FOS.

defender_of_the_weak

FOsman, if you think companies are not quoting the 15 year limit you are dreaming. I see this every day in various rejection letters along with a load of legal sounding claptrap designed to convince people they should drop the complaint.

Samsyerman. What time limit was applied in your case. Can you quote from the FOS details, was it more than 6 months from the date of Nationwides reject before you went to FOS. All the more puzzling because nationwide do not normally time-bar

FOSman

Hi Defender, how are you doing?

I am aware that firms quote the 15 year rule. This usually leads me to make a simple 5 minute phone call to the firm to say that it does not apply when trying to stop the complaint reaching the FOS.

Sadly, we can't punish firms for poor complaint handling. This is the FSA's role. However, should a complainant suffer meaningful distress and inconvenience because of the way a firm has behaved, some additional compensation for D&I may be awarded.

samsyerman

Defender of the weak

I have sent you a pm.

samsyerman

banjo_boy_2

Hi

I wish I had seen this thread back when I started trying to gain compensation – it would have been a great help.

I am in the situation that the F.O.S has agreed that (Friends Provident Life and Pensions Limited) were at fault selling me an endowment policy and agreed that they should settle with me. They have sent me a form which I am to sign and return to the Friends Provident which quite categorically states:

“I confirm my acceptance of the offer from Friends Provident Life and Pensions Limited outlined in your letter 19 June 2006 in full and final settlement of my complaint.”

The F.O.S has pointed out that by signing the acceptance form I am only accepting the industry standard method of redress and that I am not accepting any offer in full and final settlement of my complaint. Why then does the letter not state this?

I have written to them pointing out that the danger of signing this form when I do not know what their interpretation of the settlement is. The only response I now get from the F.O.S. is that if I do not sign then they will not precede any farther with my complaint and ultimately my file will be closed.

Is this the normal letter that I should expect and everything is going well or am I just being too cautious??

Thanks

Banjo

defender_of_the_weak

This is a standard industry form used by FOS, once the case is returned to FP they will calculate your loss. Once the offer arrives, if you are unhappy with it you can return to FOS if you think you are being unfairly treated or the offer is too low.

roger_from_cov

I am currently taking Friends Provident to the small claims court for the endowement they took over from London and Manchaster that was sold to me. I intend to use systematic mis-selling as my defence where the fact find indicates that I was promised a final return and a bonus, but no mention was made that I might have a shortfall at the end of the term that woould have to be made up by myself. If anyone has any links to similar complaints from people against the same company, I can use these as part of my defence. this may pave the way for others to follow my route if I can gather a number of these complaints up. PS you can take court action after a few years from the point where you were aware that the product was mis-sold/misrepresented to you.

dunstonh

If anyone has any links to similar complaints from people against the same company, I can use these as part of my defence.

There has been very little success in this area. Those few that have succeeded have usually done it on a technicality or by using an indirect approach.

PS you can take court action after a few years from the point where you were aware that the product was mis-sold/misrepresented to you.

Although most solicitors would put you off from doing this because they know the chance of success is slim.

One of the biggest problems for you is going to be the fact that the court will put more weight on the product illustration and key features document that were given to you. Both of these mention the risk of shortfall and that there is no guarantee of hitting target. If yours is a mid 90s case, then one of the rates will actually show a shortfall position. You cannot argue you didnt get the illustration because even if the company rep didnt give it to you, a copy was sent in the post along with the cancellation rights. The FOS nearly always disregard the illustration and key features document. Making complaints using the FSA complaints process easier for the consumer than using the courts.

FP, have previously fought claims in court rather than give in. Now that doesnt mean they will with you but you need to be prepared in case they do.

You also need to be prepared to give proof of mis-sale as you saying it is not enough. Again, unlike the FSA complaints process, the onus is not on the company to prove it was not mis-sold. It is on you to prove it was. What proof do you have? Using the systematic mis-selling line is unlikely to work as most endowments were not mis-sold. So, if you are playing a balance of probability line, that actually favours FP. So, what other evidence of mis-sale do you have to back it up?

englishchrissy

Hi, please take this as a warning, anyone who has a Friends Provident endowment policy. My policy matures early March this year. It was originally for £33000 plus profits. I was told by the agent that I would get at least £40000. What I actually got was £25149. I have paid in over £13000 in the past 25 years.

Last Mar I was told I would get £29100 if I continued and £27763 if I surrendered the policy then.
So, like a mug, I struck with them and paid another year of contributions (£500). Today I get a letter congratulating me and telling me about the maturity value. Just £25149, a shortfall of over £2600 on what I could have surrendered it for last year.

So I have lost £2600 plus £500 Ive paid in contributions over the last 12 months. Add the interest I could have save if I'd used the surrender value to pay off my Mortgage last year., £27000 x 6% = £1620. So I am at least £4720 worse off than I would have been, had I surrendered last year.

Is there anything I can do about it? Friends Provident says NO!

So please readers, take my advice. Stop throwing good money after bad. Surrender your policies immediately. You will thank my for saving you money in the long run. Please tell your friends to do the same.

Thanks for your time.:mad:

dunstonh

englishchrissy wrote: »

Hi, please take this as a warning, anyone who has a Friends Provident endowment policy. My policy matures early March this year. It was originally for £33000 plus profits. I was told by the agent that I would get at least £40000. What I actually got was £25149. I have paid in over £13000 in the past 25 years.

Last Mar I was told I would get £29100 if I continued and £27763 if I surrendered the policy then.
So, like a mug, I struck with them and paid another year of contributions (£500). Today I get a letter congratulating me and telling me about the maturity value. Just £25149, a shortfall of over £2600 on what I could have surrendered it for last year.

So I have lost £2600 plus £500 Ive paid in contributions over the last 12 months. Add the interest I could have save if I'd used the surrender value to pay off my Mortgage last year., £27000 x 6% = £1620. So I am at least £4720 worse off than I would have been, had I surrendered last year.

Is there anything I can do about it? Friends Provident says NO!

So please readers, take my advice. Stop throwing good money after bad. Surrender your policies immediately. You will thank my for saving you money in the long run. Please tell your friends to do the same.

Thanks for your time.:mad:

What I actually got was £25149. I have paid in over £13000 in the past 25 years.

Thats a return of about 5% p.a. net. Not bad really. The problem wasnt so much the performance but an unreleastic target growth rate being used. Not uncommon for 1980s plans that based performance on what had been achieved in the previous 30 years.

Is there anything I can do about it?

Not a thing. You took on a decision to leave the money invested and in that period the stockmarkets went on to fall 30%. You gambled and you lost. If the stockmarket had gone up 20% then you would have gained more. You made that choice, no-one else.

Friends Provident says NO!

They are correct.

So please readers, take my advice.

I wouldnt take your advice. It isnt accurate and it gives no consumer protection if someone follows it and its wrong.

You are jumping to conclusions and assumptions without actually knowing what you are talking about and then telling others to do the same. Yet you know nothing about their policies, target growth rates, charges, timescales, investment funds, cost of replacement life cover or CI cover etc.