Endowment policy

Stephen777

Took out a policy to pay off my mortgage of 21k was informed it would pay a lump sum of 21k also, total circa 42k was value i was informed.

I took out this policy in Oct 1985, received a letter this week advising it now projects a shortfall, all previous annual statements had projected a surplus.

Today rang the ombodsmans office was informed as policy was taken out before 1988, i cannot seek redress as was unregulated prior to this date.

Have i any avenues to help my situation.

dunstonh

Have i any avenues to help my situation.

No.

If the FOS have identified that the seller was not an agent of the insurer then as a pre-regulation case you have no consumer protection (as that started in 1988).

Stephen777

dunstonh wrote: »

No.

If the FOS have identified that the seller was not an agent of the insurer then as a pre-regulation case you have no consumer protection (as that started in 1988).

The seller was an agent of the insurance company.

dunstonh

In which case, you can complain to the insurer. Its only when the seller was an accountant, solicitor or what are now IFAs or those individuals that had agencies for friends where you wont get any luck with pre 88 complaints. The insurance companies have nearly 100% agreed to review complaints about their own representatives or employees from before 1988.

However, the complaint will be measured on the basis of the rules in place in 1985. Which were basically none. So, you would have to really have some pretty strong evidence of mis-sale.

Investment returns are not grounds for mis-sale and a drop in value is to be expected given the events of the last year. Although recent gains have helped us pick up from the lowest point (so far).

Stephen777

dunstonh wrote: »

In which case, you can complain to the insurer. Its only when the seller was an accountant, solicitor or what are now IFAs or those individuals that had agencies for friends where you wont get any luck with pre 88 complaints. The insurance companies have nearly 100% agreed to review complaints about their own representatives or employees from before 1988.

However, the complaint will be measured on the basis of the rules in place in 1985. Which were basically none. So, you would have to really have some pretty strong evidence of mis-sale.

Investment returns are not grounds for mis-sale and a drop in value is to be expected given the events of the last year. Although recent gains have helped us pick up from the lowest point (so far).

So in all honesty i have little chance,as although i have the ordinary bonus sheets with the hand written projections (eg £42,686) 1986 from the company, if no regs were in place they could have actually told me anything without being held accountable.

lleck

I took mine out in 1986 - same problem but i still complained to Abbey who advised us and they did actually pay out as we had all the original documentation and NOWHERE did it say that the investment may fall or words to that effect. Give it a try what have you got to loose.

dunstonh

they could have actually told me anything without being held accountable.

If you have documentary evidence then it is still very strong, even for an early to mid 80s case. Its when its verbal (my word vs theirs) that you have a much harder chance.

The projections written would not be evidence of mis-sale. The projection rates were far higher in those days and all of them would have exceeded the the required amount. Nowadays, they are actually more likely to be the other way with them understating slightly (better to be that way round).

Some insurance companies also seem to work on a quota system in the belief they need to be upholding around 1/3rd of complaints to have average stats. Sometimes you can just get lucky on a borderline complaint and they pay out when someone else may refuse to.