Help and advise regarding endowments

LittleMissUnhappy

My mum and dad took out an endowment mortgage, it hasnt been hitting the targets for a few years so about 4 years ago they took out a repayment mortgage but continue to pay the endowment.

They were told the endowment was the best option, they would have enough money to pay mortgage plus a substantial amount left over....blah blah blah.

Last year or maybe the year before I looked into the mis-selling side of things sent a letter to Standard Life but got a reply saying as they didn't sell the endowment they were not responsible and as the policy was taken out before 28 August 1988 nothing that can be done. (it was taken out in August 1987)

So that was that.......or is it????

Can anymore be done? The original endowment was arranged with a local finance company who are no longer around the endowment is with Standard Life.

Can anyone help or advise

Many thanks in advance:D

Scaredy_Cat_3

I had a similar problem in that my endowment policy was taken out in February 1988 and apparently the law governing the advice given didn't come into effect until April 1988.

So, although I was told exactly the same as your parents - ie it would definitely repay the mortgage and would give me an extra bonus as well - I can't get any compensation because the policy was sold before the Act came into force.

I was told it's possible it could be looked at if I had written proof of what the adviser had told me - but sadly I didn't have any paperwork left from that long ago. I just had the name of the adviser and where the meeting took place etc., but didn't have any illustrations to back up what I was saying. Do your parents have any written proof of what the adviser told them? If so, they should definitely try to claim anyway.

I know the claim should initially be directed at the company who sold the policy - I'm really not sure what you do if they are no longer trading, but I'm sure there will be someone more knowledgeable along soon who can tell you that. Then, after you have exhausted all options there, you will be able to complain to the ombudsman.

Good luck.

LittleMissUnhappy

Thanks scaredy cat.

I did just give up on it as I did complain back in august 2007 and because they said it was taken out before august 1988 there was nothing i could do. (or words to that effect) Would this make a difference to complaining to ombudsman, given the length of time? or if i just started a new complaint (if i can) that would restart the clock?

I will find out if the oldies have any extra info, not holding my breath though.

Thanks again

dunstonh

So that was that.......or is it????

Standard Life have no liability as they didnt provide advice. It is also before regulation so there is there is no complaint avenue.

Its end of the woad.

I'm really not sure what you do if they are no longer trading,

It doesnt matter in this case as the complaints process for firms that no longer exist didnt come in for new business transacted after August 1988.

LittleMissUnhappy

Thanks dunstonh:)

I will stop wasting my time on this then......shame my parents were a year too early

dunstonh

LittleMissUnhappy wrote: »

Thanks dunstonh:)

I will stop wasting my time on this then......shame my parents were a year too early

I know its no consolation but when they took there policy out the media was pro endowment, the consumers association was pro endowment (and they also recommended Standard Life as the best buy). Had this site existed then, there would be articles on endowment best buys.

At the point they took it out, no endowment had ever failed to hit target either. It's easy to look back with hindsight but not so easy looking forward. Things may not be as bad as they realise. Standard Life do have a mortgage promise value (its usually shown as a range of value depending on rate of return). This is added to the maturity value if it falls short. So, the projections may be understating the actual likely return. Also, for most people, endowments were cheaper than repayment mortgages. Typically by around 10%. So, the net effect at the end may not be as bad

LittleMissUnhappy

Thanks again

Fortunately they were able to get a repayment mortgage (loan) over 7 years (i think) so at least the house get paid off, and they were able to keep up payments with the endowment so at least there will be something at the end of it.

they took out the endowment with a small local company, standard life provided it then they got the repayment mortgage from abbey...........so many comapnies!!!!

Mortgages confuse me:D