miss sold endowment interim authorisation

chrisclay

Hello i am looking for some advice on regarding an endowment that was sold to me at the time it was sold we were told that not only would it repay the mortgage but there would be a lump sum ,but is failing badly so I have tried to contact the seller only to find that they have gone out of business so then I contacted the fscs who told me that the company who sold me the endowment only had interim authorisation to sell these products so they could not help me but advised me to contact the fsa no help there either so i then contacted the ombudsman no help there either ,so I then wrote to my MP (bob Spink) who wrote to the minister responsible for policy in this area (kitty Usher) who replied telling me that at the time the government was giving company’s the authorisation to sell these products they could not deal with the applications to become fully authorised fast enough so they gave out interim authorisation but policy’s sold by companies that only had interim authorisation would not be covered by the fscs .
I have written back to complain and am getting nowhere the only advice given is to get in touch with Standard life who just refer me back to the seller
It looks at this moment in time that we will have a shortfall of about £25,000 or maybe more this is on a mortgage that is £50,000 so we are getting worried as there is only six years left on our mortgage

So any further advice would be appreciated

Chris

opinions4u

Did you say all that without breathing?!!

It looks like you've fallen through a hole in the system to be honest.

A couple of questions:

- why do you think you have been mis-sold?
- when did Standard Life first send you a red letter?

Poor financial performance is not a mis-sale.

If the red letter was more than 3 years ago (mine was) you wouldn't be able to claim even if the sellers were still trading.

chrisclay

thanks for the response
I believe we were miss sold as at the time of us buying it we were told that we would also get a lump sum and it could be looked at as a pension
the first red letter arrived about six years ago and i complained shortly and again a few years later to see if the goverements policy had changed

EdInvestor

It does seem you have fallen down a crack

You might be better right now to focus on dealing with the shortfall - even if you did win misselling redress that would not solve the problem.

Post some info about the policy

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts
Interest rate payable on mortgage

chrisclay

hi thanks for the reply here is the info

Guaranteed sum assured ?
Declared bonuses £10,852.40
Surrender value £21110.25
Monthly premium £65.50
Maturity date January 2014
Maturity forecasts 3.75% £27102.40 5.5% £28.300 7.25% £30400
Interest rate payable on mortgage currently fixed at 3.99% for next 21 months
i dont know what the gauanteed sum assured is

chris

EdInvestor

chrisclay wrote: »

Maturity forecasts 3.75% £27102.40 5.5% £28.300 7.25% £30400

I suggest you dump this endowment now and use the lump sum to reduce the amount owed on your mortgage immediately (assuming there are no early repayment penalties). Then you should increase the amount of the monthly mortgage payment by the endowment premium.

If you did this, your equivalent return at maturity would be 30,052, almost as much as SL's top forecast (which they will not meet) and you are taking no risk.

To pay off the mortgage on time you may need to increase the overpayments further,but there is no need to switch to repayment terms, just overpay your I/O mortgage.

Doing it this way will considerably reduce the interest you have to pay over the remaining term and will thus minimise your loss.

Mollydolly_2

How can a insurance agent sell endowments not covered by F.S.C
We were sold an endowment policy but cannot get compensation for it because it was interim


We brought it 12 jan 1999

However if we had purchased between 26 jan 1990 to 27 July 1998
Or 25 may 2000 to 21 sep 2006
We would have been covered.

So we were not covered
Please someone help this surely this cannot be right

Annisele

chrisclay wrote: »

the first red letter arrived about six years ago and i complained shortly and again a few years later to see if the goverements policy had changed

What happened when you complained six years ago? Why didn't you pursue it at the time? Did you make any changes to your mortgage six years ago when you realised a shortfall was likely? If not, why not?

I ask because, on the face of it, you may now out of time for making a complaint - to FSCS or anybody else.

Thrugelmir

Annisele wrote: »

What happened when you complained six years ago? Why didn't you pursue it at the time? Did you make any changes to your mortgage six years ago when you realised a shortfall was likely? If not, why not?

I ask because, on the face of it, you may now out of time for making a complaint - to FSCS or anybody else.

This is an old thread that you've replied to.

Annisele

Thanks Thrugelmir.

Mollydolly - would you mind starting your own thread? I know you're new, so you wouldn't have known this - but if you add to other people's threads you'll find that people answer the other people's questions and not yours (like I did). It gets confusing!

DVardysShadow

Annisele wrote: »

Thanks Thrugelmir.

Mollydolly - would you mind starting your own thread? I know you're new, so you wouldn't have known this - but if you add to other people's threads you'll find that people answer the other people's questions and not yours (like I did). It gets confusing!

Plus everyone who reads the thread has to read through a problem which has been dead for 2 years before getting to yours.