Mis-sold endowment?

kraftkool

Several months ago I sent all the details of our endowment mortgage to one of the firms that are supposed to fight on your behalf. They wrote back and said we didn't have a case (or did they mean it wasn't worth their while?)

Anyway I would like to try to do it myself. We had a repaymant mortgage with Nationwide and after 3 years they wrote to us recommending an endowment mortgage with Scottish Widows. No-one came to see us, it was all done through the post. Naturally all we could see was the 30000 we were going to get at the end of the mortgage, so we signed up.

What I want to know is, who do I actually write to first, Nationwide or Scottish Widows.

Any help or advise would be much appreciated
KK

dunstonh

No-one came to see us, it was all done through the post.

So no personal advice was given then.

What I want to know is, who do I actually write to first, Nationwide or Scottish Widows.

Neither. You write to the company that gave you financial advice. If you sought no advice on the mailshot you received, then it is treated as a direct offer and the company doing the mailshot has no liability unless the mailshot has stated something inaccurate or worded it in a way that is personal financial advice.

kraftkool

No one gave us any personal advise and we didn't have a financial advisor either.

Are you saying because we didn't get our own financial advise we weren't mis-sold? Even though we bought on the recommendation of the Nationwide.
KK

dunstonh

Are you saying because we didn't get our own financial advise we weren't mis-sold?

Correct. If a financial adviser had recommended it then there is a liability for the advice given. When you respond to a mailshot, you are not taking any advice.

Even though we bought on the recommendation of the Nationwide.

The Nationwide havent recommended it. You responded to a mailshot. Junk mail in other words.

When you make a complaint, you are complaining about the advice given. You didnt seek advice and purchased on your own. Therefore the responsibility is with you. It's one of the main risks of doing execution only or responding to junk mail.

vinno65

dunstonh wrote:

The Nationwide havent recommended it. .

So why the did they send the mailshot? You couldn't make it up!
Basically Kraftcool you have been mugged by the financial services industry. You see they weren't happy with making a fortune off you with a straight repayment mortgage. Oh no! They tied in with an endowment provider who told them that they could sell their endowments to cover an interest only mortgage (that way the interest on the loan never goes down over the 25 years so they make an even bigger fortune) also the endowment company pays them a commision for selling it. Quids in!! Unfortunately for you they weren't happy with just mugging new customers but they got you as well!

Legally its allowed and you probably have no course to redress, morally it's completely wrong.

regards Vinno

dunstonh

Vinno, that is complete rubbish. If a company sends out junk mail it is just that. No-one forces you to take out anything on a mailshot.

If you then choose not to take advice, you are responsible for your own actions.

EdInvestor

Hi kraftkool

You may find the information on this thread useful.

vinno65

dunstonh wrote:

Vinno, that is complete rubbish. If a company sends out junk mail it is just that. No-one forces you to take out anything on a mailshot.

If you then choose not to take advice, you are responsible for your own actions.

Now who's talking rubbish. I percieve junk mail to be from sources that I am unaware of or have not requested. Mail from my building society I will read.
Kraftkool I believe did the same thing. Got a glossy brochure from the building society with a letter stating" as a valued customer we feel we must offer you this wonder mortgage! etc etc, please fill in the relevant forms etc etc etc."
I hate to think what the brochure said, "hey thicko what you still doing with a repayment blah blah blah.!"

Kraftkool if you are still reading these posts then check out Gerry Anderson, he's in the same position as you and his web site makes interesting reading. You won't get your money back but there is some comfort in knowing you weren't the only one duped.
regards Vinno

dunstonh

Now who's talking rubbish. I percieve junk mail to be from sources that I am unaware of or have not requested. Mail from my building society I will read.

My bank statement has a sales leaflet in it every month. I dont buy what it is offering. If I did, it would be my responsibility and no-one elses.

Why should endowments be no different to any other product, financial services or otherwise?

vinno65

dunstonh wrote:

My bank statement has a sales leaflet in it every month. I dont buy what it is offering. If I did, it would be my responsibility and no-one elses.

Why should endowments be no different to any other product, financial services or otherwise?

Because there are strict rules governing the sale of endowments which the mailshot, by turning the sale into execution only has circumvented. Another little loop hole effectively utilised!. The bank gets commission and the extra interest over 25 years with no future liabilities..
regards Vinno

dunstonh

Because there are strict rules governing the sale of endowments which the mailshot, by turning the sale into execution only has circumvented. Another little loop hole effectively utilised!. The bank gets commission and the extra interest over 25 years with no future liabilities..
regards Vinno

There is no loophole. Many regulated financial services products are promoted by mailshots or advertising. The choice to buy is with the consumer. No-one is forcing them.

As it happens, some of the worst examples of financial services products tend to be sold on mailshots because no financial adviser would touch them. Such as the AXA "Carol Smilie" cashbuilder or the over 50s life cover where "no salesman will call" (interesting spin they put on that. No salesman will call as that would involve a liability for advice and the product is very poor so no adviser would sell it anyway).

At the end of the day, if you buy without advice, you have limited consumer protection. Only if the wording of the mailshot turns out to be a breach of rules would you stand any chance. You cannot complain about the advice given if no-one gave any advice.