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Endowment complaint

swiftandsure
Posts: 21 Forumite
Ten years ago we moved house and took out a repayment mortgage. We had an endowment on the previous house and we kept that going as a means of saving some cash.
I did complain once that we had been mis-sold because their advisor said there would be more than enough to pay off the mortgage plus some over for ourselves and he never offered alternative advice. Their answer was roughly that there would be enough to pay off the mortgage so it wasn't relevant.
Last week we received a warning notice that the endowment would have a shortfall. I fired off a complaint stating that they and the advisor had said it would reach target and today received complaint forms.
Can anyone tell me why I should answer some of their questions? I do not understand why they need to know myself and my wifes occupations and salaries at the time of taking out the endowment? They want to know about other savings, pensions etc.
Surely the only consideration should be that their representative mis-sold and then they compounded it by saying the same some years later?
I am glad to say that I paid off my current mortgage this month but that in my opinion is nothing to do with them either?
Advice please?
Thank you.
I did complain once that we had been mis-sold because their advisor said there would be more than enough to pay off the mortgage plus some over for ourselves and he never offered alternative advice. Their answer was roughly that there would be enough to pay off the mortgage so it wasn't relevant.
Last week we received a warning notice that the endowment would have a shortfall. I fired off a complaint stating that they and the advisor had said it would reach target and today received complaint forms.
Can anyone tell me why I should answer some of their questions? I do not understand why they need to know myself and my wifes occupations and salaries at the time of taking out the endowment? They want to know about other savings, pensions etc.
Surely the only consideration should be that their representative mis-sold and then they compounded it by saying the same some years later?
I am glad to say that I paid off my current mortgage this month but that in my opinion is nothing to do with them either?
Advice please?
Thank you.
0
Comments
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Should the FSA uphold your complaint, assuming the company don't settle amicably, they will need to understand your situation to put you "back into the position you would have been in, had you been on repayment", originally.
To do that they need to see the steps you have taken over the course of the life of the endowment.
i.e. If, after Endowments became publicly known as "uncertain", shall we say, you went out and got more endowments then they would view that differently than if you had stayed well away from endowments.
If you are serious about the complaint, you cannot get to the FSA point until the company have had a chance to consider what happened, so either you give them the info or they don't progress the complaint...0 -
Can anyone tell me why I should answer some of their questions? I do not understand why they need to know myself and my wifes occupations and salaries at the time of taking out the endowment? They want to know about other savings, pensions etc.
To put it bluntly, they want to find out if you are thick or should have the common sense to know better. They also want to check to see if risk was affordable to you or not.Surely the only consideration should be that their representative mis-sold and then they compounded it by saying the same some years later?
You are in effect making an accusation of fraud against that representative. If that individual is still around then the outcome of the complaint can impact on them professionally and financially. So, if you have nothing to back up your claims then they are asking you for further evidence.
if their own files are satisfactory then it will be an easy rejection for them. If they are not then it could swing in your favour without you needing to provide further evidence.
You mention its an insurance company rep. They do not have the remit to recommend cancellation of existing plans. So, any complaint on the basis that they didnt tell you to cancel would fail as they are not allowed to tell you to cancel. Only IFAs can do that or in special cases with tied agents where their employer allows it.
Also, you mention you switched to repayment mortgage 10 years ago. Most endowments didnt start falling short until 2000-2001. So, even if your complaint is upheld, the fact you switched to repayment mortgage in 1999 means you may not get any redress as the calculation is made up to the point the endowment is no longer used for a mortgage.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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