Report Endowment Misselling Compensation SUCCESSES

dunstonh

Is this normal?

Yes. Where time bars were incorrectly set or an administration error in the checking was wrong, then firms are instructed to go back and check again. I seem to recall something said recently that suggested they had to go back and check a number of cases.

is it worth holding out for any more cash?

No. The calculation is defined and not something you can haggle for unless the data input is thought to be incorrect.

turbobob

This is the probable reason for it I would think - http://forums.moneysavingexpert.com/showpost.html?p=13739037&postcount=6

As for holding out for more, no as they do not make random cash offers that they hope you are happy with. Compensation is calculated using a set formula. See page 6 of this - http://www.moneymadeclear.fsa.gov.uk/pdfs/endowment_complaints.pdf

As long as the information used in the calculation is right (e.g. your mortgage history) then the offer should be right..

pnw72

Hi
I recently complained about my 2 endowments, 1 for £48,000 & 1 for £12,000. Both sold by GA, who have eventually become NU.

NU said that the one for £48K had no compensation due, and the one for £12K had £209 due.

Looking at some of the other payouts people have had, for endowments a similar size & bought at a similar time with the same company, this seems low. Is it worth complaining to the FOS?

Thanks for your time.

theodora62

Guardian Royal Exchange
£1752 compensation

Thanks for your advice. I was initially cold called by a company offering to find out if I could be compensated for being mis-sold my endowment, but I read your guidance and tried by myself. I was out of time to reclaim the full amount, but they agreed to process my claim that as a single person with no dependents, the life cover aspect had been mis-sold, and offered me £1752. I went back to the company who had offered to research for me, and they advised taking it, as if they were to act on my behalf they would, in any case, be taking 35% +Vat on any compensation offered.
My mortage was for £37,500 over 25 years, and has 5 years to run. Not sure if I got a reasonable deal, but since I wasn't expecting any money at all, this was a lovely surprise.
Thanks

Lynn_Jones_2

Has anyone heard of the change of law that happened last spring? It was supposed to offer more protection to mortgage owners than was in existance before and also protected against uscrupulous selling. It implies that you have a case for compensation if there is a clause written in to your contract which is illegal or forces you to make a decision to extend your mortgage. For example I was told that if I didn't extend the mortgage my monthly repayments would go up anyway so I may as well extend and have the extra money to pay the higher repayments. I don't think this was true.

I can see from the internet that there are law companies offering their services to represent your case in court for a fee, if you think you have one. Who do you trust?

dunstonh

I can see from the internet that there are law companies offering their services to represent your case in court for a fee, if you think you have one. Who do you trust?

whilst these companies have popped up, it is worth noting the following warning from the OFT over these companies...

http://www.oft.gov.uk/news/press/2008/consumeralert

showergirl

I took out an endowment mortgage with the Halifax 21 years ago. When I was informed that my endowment would not pay off my mortgage i transfered most of it over to repayment. Last week I received a letter stating that my endowment would not pay off the mortgage. Then it was reported on the news that we would be bailing out the banks. I rang the ombudsmun who contacted the Halifax for me. I filled in the forms and sent it off to the Halifax. They rang me today saying they agree the policy was mis-sold and would ring me later on today or Monday with a figure. I just want to say anyone out there in the same boat contact the ombudsmun, you have nothing to lose. Will update you on the figure when I know

dunstonh

I just want to say anyone out there in the same boat contact the ombudsmun

Or just contact the provider directly as the FOS only forward your complaint to the provider. They dont do anything else.

treliac

You are expected, initially, to make your complaint direct to the provider. The ombudsman service will arbitrate and make a decision if the two parties have reached deadlock.

luv_my_brass

pnw72 wrote: »

Hi
I recently complained about my 2 endowments, 1 for £48,000 & 1 for £12,000. Both sold by GA, who have eventually become NU.

NU said that the one for £48K had no compensation due, and the one for £12K had £209 due.

Looking at some of the other payouts people have had, for endowments a similar size & bought at a similar time with the same company, this seems low. Is it worth complaining to the FOS?

Thanks for your time.

I supppose it all depends on what grounds you think you have for claiming a 'mis-selling'.
I began my own claim in 1995 not really knowing what I was doing. But the consensus was that the mortgage would be paid off AND a lump sum being paid. There was never any mention that it MIGHT not be paid off. Also, I was given a 25 year mortgage, even though I would be on a pension long before the policy matured. In my case, they were actually building loans, one for 6k and one 3k. It was finally agreed to pay me £1,500 compensation for the 3k policy plus give me back all my insurance payments, in all totalling 3k, so I gave the 3k back - which paid off the loan. So for you to get nothing for the 48k policy and only £209 for the 12k seems pretty pathetic by comparison.
They treated the 6k loan quite differently :rolleyes: The debt was 'frozen' and I haven't paid any monthly premiums since, although I have kept up the endowment policy which I still expected to pay off the (just under) 6k, but as things have worked out, the bonus's have been very low and at the last count there was an £1,500 shortfall. Don't know what is going to happen to it now, it doesn't mature til 2012 and anything could happen in 3years