Mis sold or not what do you think?

dimac1

Hi, I have a quick question.

Many people are jumping on the mis sold band wagon and I am being encouraged to do so by my wife and others who have sought compensation.

I don't know if I was mis sold or not. I was sold an endowment policy on the grounds of savings and that I could use it to get a mortgage when I was ready, as I was not taking a mortgage out just then. I was advised that I could take out a mortgage up 25000 the guaranteed sum, but that I would get more than this possibly 33- 35 000 back when the policy matured in 25 years.

I later went on to take out a mortgage for less than the 25000, but 8 years ago took out a mortgage for more than 25000 approx 35000 so I had to take out another endowment policy. Now both are projected to have shortfalls especially the most recent with Standard Life and shockingly so considering it is only 8 years old. The Prudential are predicting a shortfall also.

In the considered opinion of this forum, do I possible have a case of mis selling as I did not have a mortgage at the time and it was several years later that I first took a mortgage, but believing that I was covered by the 2 amounts to pay off my existing mortgage now find that not to be the case.

vinno65

Hi Dimac1,
your case is known as a forward sale i.e sold an endowment before you had a mortgage. I believe this is good grounds for a miss-sale, but check out the FOS and FSA websites they'll tell you more

regards Vinno

dunstonh

Virtually all pre-sold endowments end up in refund of premiums plus interest.

I should also state that Prudential or not predicting a shortfall. The projection rates are not predictions. They are examples only. You have investment funds out there performing at 10% a year but they still have to use the standard projection rates. You also have some funds not making a penny so relying on the projection rates for those can overstate the amount.

silvercar

At least you should get the windfall shares from Standard Life.

dimac1

Cheers everyone, I will look at those sites mentioned. I am looking forward to my shares, but I note I only get one bite at the cherry even though I have 2 policies, one an endowment and the other a pension.

Thanks again.