Mis-sold endowments

albasul

In 1985 we took our first steps into the property market with a repayment mortgage with the Halifax. Over the next 2yrs we were continually approached and eventually persuaded to change to an endowment in 1987.

We received the usual warning bells shortfall letters and as a result we used our savings and money borrowed from our parents to pay the mortgage off in 2002 but have continued to pay the endowment. In 2003 we complained of a mis-selling which was refused. We gave the complaint up as a lost cause.

The details are £19,500 endowment due to mature in 2009. The current value is £12,700.

However, one month ago we received a letter from the Halifax requesting our permission to re-investigate our complaint. We gave our permission and last week received a bankers draft for just short £500. This letter also stated if we cash the draft we are accepting a full and final settlement. Our shortfall falls between £3- £4,000 depending on growth.

We are puzzled as to why our complaint has been re-opened and more importantly found in our favour.

From my experience first offers are the lowest offer with the potential for an increased offer. Can anyone shed any light on why we have now been made this offer. Has some of the legislation changed? Has anyone experienced anything similar and what are the chances of an increased offer.
We welcome any advice or shared experiences.

Thanking you in anticipation

dunstonh

We are puzzled as to why our complaint has been re-opened and more importantly found in our favour.

Lots of reasons as to why. Maybe the person checking your case was found to be making mistakes and all cases re-reviewed. Maybe the company process was weak and they were "encouraged" to re-review cases under a certain criteria. It does work both ways as well as an ombudsman was not too long back found to automatically uphold cases from a certain advice firm regardless of documentation. That person no longer works for them and the cases re-assigned. Some people would have initially been told that the ombudsman found in their favour and now being told they are not. Not ideal!!!

From my experience first offers are the lowest offer with the potential for an increased offer.

This is a wrong assumption. The calculation method is fairly defined and unless you doubt the accuracy of the figures, there is no reason to think you would end up with anything else. Indeed, you could end up with less redress as the stockmarket rises if you request a recalculation.

what are the chances of an increased offer.

Extremely unlikely nowadays. 4 years ago you may have got away with a small increase in attempt to save FOS fees but if the firm has calculated it correctly and used mortgage fundamentals, they won't budge.

EdInvestor

We are puzzled as to why our complaint has been re-opened and more importantly found in our favour.

The Financial Services Authority has been cracking down on companies which have not handled misselling complaints property - Abbey was another company foreced recently to reopen thousands of old cases where complaints had been wrongly rejected.

You can't negotiate the offer, it is based on a set formula.