Report Endowment Misselling Compensation SUCCESSES

Retired_I.F.A.

Everyone gambles with money, it's just a question to what degree.
Buying a house is a big gamble fo instance as you often find borrowers taking on a mortgage of many times their annual income and have it all invested in property. You take on a gamble that you can afford the repayments, you take on a gamble that you will too if interest rates rise, you take on a gamble that the property wont devalue amd most just pray they'll stay in paid employment.

The odds of you claiming off your buildings insurance is stacked highly in the insurance companies favour but you bet each year with your renewal premium dont you?

I'm not saying jollysellers claim was fraudulent but just from that very limited snippet he/she has posted it just shows that the regulator took the view that it was a missale based on the policyholders statement that they dont like risk nothing else. Who does?

mayb_2

That is just not in the same ballpark Retired IFA.

The whole concept of a missale is based on the assessment of a purchaser's attitude to risk at the time of purchase. Those of us who have experience of the Ombudsman would laugh at the concept that he just took our word for it. However, even the Ombudsman, and believe me he is ready to scrape the barrel on this one, would not find your argument a reason for rejecting such a claim. Can you imagine it - letter from the Ombudsman - usually stating that he appreciates that this is not what you wanted to hear, but he is rejecting your claim on the basis of - Hey the whole of life is a gamble folks live with it. However, if he is reading this and hadn't thought of that one before now, I am sure he will add it to his repetoire for future use.

Retired_I.F.A.

Okay so a first time buyer say ten years ago has only ever saved in cash deposits to raise a deposit for a mortgage. he has no other savings no pension no investments whatsoever. He then takes out an endowment mortgage confident in the fact that the odds are well in his favor to repay the mortgage and leave a surplus. He remains till now with the one investment the endowment and sees the possible shortfall. He hears about mis selling and the number of successful claimants so he puts in a claim. The claim form though I have never seen one I presume asks what his attitude to risk was.

He's hardly likely to say he spends £100 a week on the lottery is he?

It probably also asks if the salesman/whoever told you it g-tees repayment.

Again he's likely to say yes.

The whole claim form is a guide to how to get away with a bogus claim you merely think what is the answer that'll win it for me.

Crazy_Saver

Retired_I.F.A. wrote: »

The whole claim form is a guide to how to get away with a bogus claim you merely think what is the answer that'll win it for me.

I'm sure this is only true if you set out at the start to put in a bogus claim.

You have to be fair here, Retired I.F.A., there are a few honest claimants out there who don't have any idea what is on the claim form until they begin to fill it in. They fill it in honestly and some even worry about what they can and can't put. To some it is a stressful and worrying procedure.
Admittedly, to others it is as you say just another way of making easy money.

mayb_2

Retired IFA you have just stated you have never seen a claim form and then made claims for its content and their use! Sounds to me like you should apply for a job as an Ombudsman - they like to use their imagination in defense of the financial institutions too! By the way you also just described someone who was very obviously risk averse - you just imagined that he spends £100 on the lottery because it suited your argument. As I said an up and coming Ombudsman! Stop bein such a killjoy and join in the congratulations to those who had their claims upheld against all the odds.

Retired_I.F.A.

Not my nature to congratulate 100 people when I believe 99 of them are fraudsters sorry.

treliac

Retired_I.F.A. wrote: »

Not my nature to congratulate 100 people when I believe 99 of them are fraudsters sorry.

Is it really necessary to be so provocative? I thought you had such a good sense of humour but your comments are now becoming more and more vindictive.

I have really valued the help you and others have given me in improving my understanding of my own situation but this is getting unbelievably judgmental.

treliac

howardtog

Am in the throes of complaint and am heartened by these success stories. Can anyone advise how their compensation was calculated. Was it a % of the shortfall:or the amount between the projection and the mortgage amount. Someone mentioned the difference between the cost of a repayment mortgage and cost of interest and insurance premium but I dont understand how this is calculated. Would stress I am not looking for figures just method of calculation.
Thanks

dunstonh

howardtog wrote: »

Am in the throes of complaint and am heartened by these success stories. Can anyone advise how their compensation was calculated. Was it a % of the shortfall:or the amount between the projection and the mortgage amount. Someone mentioned the difference between the cost of a repayment mortgage and cost of interest and insurance premium but I dont understand how this is calculated. Would stress I am not looking for figures just method of calculation.
Thanks

They calculate how much you would have repaid over the repayment mortgage and compare that to the interest only mortgage value minus the surrender value of the endowment. Cost of life cover is taken into account on the endowment so that is deducted as well to give a like for like calculation.

There is no shortfall mid term on an endowment and how endowments work, you would expect many to be in a shortfall position early to mid term only for them to get in to surplus by maturity. So, the shortfall position is totally ignored as it means nothing.

turbobob

howardtog wrote: »

Am in the throes of complaint and am heartened by these success stories. Can anyone advise how their compensation was calculated. Was it a % of the shortfall:or the amount between the projection and the mortgage amount. Someone mentioned the difference between the cost of a repayment mortgage and cost of interest and insurance premium but I dont understand how this is calculated. Would stress I am not looking for figures just method of calculation.
Thanks

Hi,

Forget about the projected shortfall for this as its not relevant for the purpose of redress

Endowment redress is usually* calculated by comparing the position you are currently in, against the position you would be in if you had taken a repayment mortgage instead of an endowment.

Lets take a made up example -

Lets say you took out a mortgage for £50,000
At the date of calculation, lets say the balance of a repayment mortgage would be £20,000 (i.e. you would have paid off £30,000 of capital if you had taken a repayment mortgage at the start)
So, assuming the endowment route was cheaper than a repayment mortgage, as is often the case, the amount required to put you in the position of having a repayment mortgage would be £30,000.

Assuming the current surrender value of the policy was £27000, the amount of compensation would be £3000.
But if the current surrender value of the policy was £31000, the amount of compensation would be zero.

* Other redress methods may be used in some cases, for example if your policy was sold when you didn't have a mortgage.