Endowment maturing - help please

baldyfatman

I have a Royal Sun Alliance policy (now Phoenix) for £19K maturing in June 2009 for just over £13K
In 1992 I wrote to them after press claims that endowments would not perform, they replied, rejecting the press and unequivocally reassured me that the sum payable at the end of the term would be sufficient to repay my mortgage. I was happy with that until 2003 when the warning letters started to arrive about shortfall. I questioned them, complained but didn't get anywhere. I had the option of going to the ombudsman but did not.
Questions...Should I have gone to the ombudsman ? Can I still ? Any other recommendations ? What chances of compensation ?

EdInvestor

baldyfatman wrote: »

I was happy with that until 2003 when the warning letters started to arrive about shortfall. I questioned them, complained but didn't get anywhere. I had the option of going to the ombudsman but did not.
Questions...Should I have gone to the ombudsman ? Can I still ? Any other recommendations ? What chances of compensation ?

You had 3 years from the time you received a "red letter" announcing a high risk of shortfall in which to make a formal complaint .If you did not do by the deadline, you will now be time barred.

dunstonh

In 1992 I wrote to them after press claims that endowments would not perform, they replied, rejecting the press and unequivocally reassured me that the sum payable at the end of the term would be sufficient to repay my mortgage.

Thats a very strange set of scenarios. In 1992 no endowment had failed ot hit target and there had been no press comments saying they would fall short.

For a company to actually state categorically that they will pay out the full amount is very unusual as well. Saying "would" is akin to a guaranatee (whereas "should" or "could" are not).

If you have that letter stating it would pay out the required amount then you have all the evidence you need to have an upheld complaint.

Questions...Should I have gone to the ombudsman ?

Yes. You say they told you it would pay out the required amount.

Can I still ?

No you cant. You only get one bite of the cherry unless significant new information comes to light which could alter the outcome.

What chances of compensation ?

None. Unless you can produce the letter guaranteeing it will produce the full amount.

baldyfatman

Thanks for replying
Edinvestor I did complain, following their procedures and was fobbed off.. I did not go to the Ombudsman
dunstonh From a letter to me dated March 1993 they say "we can unequivocally reassure our policyholders that on the basis of current reversionary bonus ratestheir policy will provide a sum at the end of its term sufficient to repay their mortgage"
I still have the original newspaper article from the Mail (i think) Money Matters

dunstonh

dunstonh From a letter to me dated March 1993 they say "we can unequivocally reassure our policyholders that on the basis of current reversionary bonus ratestheir policy will provide a sum at the end of its term sufficient to repay their mortgage"

Thats not saying they would pay it off though. Thats just saying that based on current rates, if they continue, it will hit target.

I did complain, following their procedures and was fobbed off.. I did not go to the Ombudsman

And thats the problem. You didnt excercise your option to go to the FOS.