Report Endowment Misselling Compensation SUCCESSES

EdInvestor

It sounds as though your mortgage has been divided into two, with each of you paying interest on half and a PEP/ISA each to repay the capital.

If this was a package deal then it should be accepted that the other one was a mis-sale as well.Assuming both PEP/ ISAs are invested in the same way, the calcs will be the same and the total redress wqill be 1628 x2 = 3256.

Does that sound better?

Agree with dunstonh that it would be sensible to move the PEP/ISAs (don't close them) to another provider where you can pick some quality funds and pay low charges.

ellives

Many thanks for your reply - you provide a very valuable service, thank you.

It would seem then that the two policies add up to the £70k then, not, as I first thought, each being worth this amount. I must say this is genuinely misleading and remains so, even the paperwork for this claim states the plan as having a plan target of £70550 (whilst referring solely to my policy)?

For clarity, the full £70k was interest only - not repayment.

Changing the subject - is there a problem with my wife claiming?

What is your advice - should I get my £ first or should I inform them now about my wife's policy, whilst I am finalising the paperwork for my claim?

Finally, the covering letter states:

"As the FSA considers it appropriate to put you in the position you would have been in had you taken a repayment mortgage at the outset, you should arrange for redress to be applied to your outstanding mortgage balance in order to reduce the debt.

We will meet any reasonable costs incurred for repaying a portion of the capital, equal to the redress offered and the surrender value of your policy, with in six months of date of this offer. Before payment is made we will need written confirmation from your lender that the charge in question has been applied."

Am I correct to intepret this as saying, it must be paid into your mortgage account? If so, any payment over £500 on my mortgage account causes an early redemption penalty to apply........

By the way, the acceptance letter which I must sign to accept simply asks for proof of identity (n mention of the stuff above)?

dunstonh

I would suggest you get your wife's name and address corrected and then go back to Nationwide and ask them why they have only based their decision on your half and not both. That is probably quicker and more likely to result in her being paid her redress than starting all over again with her own complaint.

Am I correct to intepret this as saying, it must be paid into your mortgage account? If so, any payment over £500 on my mortgage account causes an early redemption penalty to apply........

No. they will pay it to you. What they are saying is that if you change the mortgage to repayment and incur costs, the lender must provide confirmation of those costs. They wont take your word for it. It has been abused in the past where people have taken the money for the fees but not done the changeover.

baldy0-7

Hi to all,

I wonder if anyone can help me, I have tried to get compensation for my mis-sold Endowment which I took out with Scottish Provident through a broker in 1985. Because this was before 1988 apparently they do not have to do anything for me because they were not under a particular rule in those days, I have evidence of them saying ( on paper ) I would get a surplus of £17,000 over and £34,000 to pay off my mortgage and also because he is a broker ,I can't touch him, he said to me I was lucky to be just £10,000 down, others were worse off !

Does anyone have any ideas, I would be very grateful, is there anything I can do ?

baldy0-7

rangercharlie

Hi, I am new to this so treat me gently.
I need advice. I have various policies through a friends company. The one i am concerned about is the Standard Life endowment. I moved house 5 years ago and told the various companies through my friend. Standard Life got it wrong on their records and for 5 years I haven't recieved an annual statement. I realised this when I hadn't recieved any share allocation and phoned them direct. They corrected the address and this summer I got the dreaded letter of the short fall.
Originally, 15 years ago when I took out the policy I decided to make the larger payments becouse it would 'garuntee' the 30,000 pay out.
I was told of the problems which is why I took out the larger payment option.
I contacted my friend when the problems started and he said that Standard Life said they would honour the payment at the end.
I did nothing, I can't claim misselling from my friend as he gave what was good advice.
Standard Life have floated and changed their minds, not updated their records for my address and thus I could have known about a shortfall earlier.
Can I get compensation direct from Standard Life on these problems

dunstonh

Can I get compensation direct from Standard Life on these problems

No. They have never given you advice. They supply information but how you act on that information is your choice.

The upside is that Standard Life projections underestimate the likely returns as they dont include the mortgage promise value or terminal bonus accrued to date.

Even SL policies maturing in surplus have been getting shortfall warnings as little as 3 months before maturity. Its the nature of the projection system.

crw21

Just had an offer of £2,332 of compensation on a £28977 endowment policy - complained on a range of issues but was what was upheld was that I did not need the life assurance part of the endowment as I was very young when I took it out and that funds invested in were not dicussed nor my attidue to risk - any way very pleased with the result.
Thank you Martin (and Which) for making me do this - had a deadline of the end of the month to make the complaint!

slyder

Bank/Provider: Winterthur

Compensation: £ 2190.09

The story: I followed the link to endowmentaction web page and literally followed the step by step instructions.

I am very happy with the result which was checked by the FSC. I have kept the policy running as i have inclued the shortfall in my repayment mortgage.

I have recently discovered the moneysavingexpert web site, I was suprised how easy the reclaiming process was. And this is just the start of my to do list, I am now reclaiming MEAF's, credit card charges, bank charges.
I have the confidence to act now because i have the resource (MSE) to help me understand what i am doing.

I shall be keeping track of my saving total for all my future actions.

Thanks very much MSE

Slyder:j :T

anandp

Hi,

Recently claimed on a policy taken out in 1993 with CGU (bought by Norwich Union). The policy was bought through an adviser who sat in the estate agent's shop and now the firm he represented no longer exists.

The quick letter back from NU states they cannot trace the financial adviser so cannot pass on my complaint and that the product provider (NU) were not responsible to ensure that the product was suitable for my needs.

It quotes "This means it is not Norwich Union's responsibility to investigate the sale of this policy".

Does anyone know if this is correct and if there are examples of providers paying even if this was the case?

Any help appreciated.

Thanks,
AP

dunstonh

It quotes "This means it is not Norwich Union's responsibility to investigate the sale of this policy".

Does anyone know if this is correct and if there are examples of providers paying even if this was the case?

That is correct. NU didnt advise you to take the policy out. You never spoke to anyone from NU. One day in 1993 they got an application in the post and they dealt with it as instructed. NU have no legal liability here.

You may be able to take the complaint to the FSCS. Although with most NU plans being on target or not far off, you may well find you wait 18 months-2 years whilst the FSCS deal with it only to be told that there is no redress payable as you are not financially worse off. (NU projections on with profits tend to understate the real position as they dont include current terminal bonus accrued or any mortgage promise value. When they are added into the projections, you tend to find NU endowments ranging from surplus to not far off target).