Endowment Compensation Companies

mypaq

Hi, I am looking for a good company to recover some money for me for missing me a endowment in 1997.
I know there are a lot about, but thought this would be the best place to get some straight honest advice.

Thanks advanced

p.s
Does the compensation come from the IFA that sold me it or from the company that i have the policy with.

dunstonh

Does the compensation come from the IFA that sold me it or from the company that i have the policy with.

The redress is paid by the IFA.

Whilst we know nothing about your case, it should be noted that a 1997 policy sold by an IFA would, based on averages, have a better level of documentation than a 1991 case (for example). You should go into this with a low level of expectation of success (unlike earlier cases where expectation of success would be higher).

Why not do the complaint yourself? It costs nothing and there is no difference in the possible outcome.

defender_of_the_weak

NO NO NO NO

I agree with your comment regarding low level of expectation (although I am still amazed by some of the poor levels of advice still around in 2001 and beyond) There is a difference in the way cases are reviewed and the issues that are raised.

Consumer average uphold rate anywhere between 35-55% dependent on who's statistic we are using this week. Our uphold rate 95%, this includes pre 88, brokers, previously rejected and referred to FOS, rejected by FOS and referred to court.

Discuss

mypaq

The problem I have is that I know the IFA personally and feel like I am stabbing him in the back by claiming compensation.
yet there will be a shortfall of £12,000 if my policy runs at 4% or £2000 if it is running at 6%.
Do you think its worth trying to complain and upset my IFA.

dunstonh

yet there will be a shortfall of £12,000 if my policy runs at 4% or £2000 if it is running at 6%.

These are just possible outcomes. Projection methods are highly flawed. For example, some project from the surrender value and not the current value. Now, if yours is one of those and the surrender penalty is £3000 and 6% p.a. was achieved, you would see a surplus of £1000 on maturity. That is despite being told otherwise. Your investment funds could be growing at 8% p.a. average or even worse at 1% p.a. average. How much do you know about your endowment.

You could end up complaining, losing a friend and getting no redress (£2k shortfall at 6% is close to no redress, even if upheld territory). What you need to do is see how the endowment is doing, how it is invested and if it has the potential to do what he said. After knowing that, you can then decide whether to complain or not.

vinno65

Hi Mypaq,
If they were that much of a friend why do you believe they miss-sold to you?

Also as Dunston says they may not be any redress due depending on who the policy is with, so if you really do not want the risk of an endowment hanging over your mortgage you could ask your friend to calculate if there is any redress due, if not you could always surrender the endowment using this capital to pay a lump of your mortgage and convert the rest to a repayment.
regards Vinno