Report Endowment Misselling Compensation SUCCESSES

dunstonh

I supppose it all depends on what grounds you think you have for claiming a 'mis-selling'.

It doesnt matter what grounds. The complaint was upheld. The policyholder won.

The calculation works out if the person was better or worse off with endowment or repayment. In this case the first one was better off and the second one only just worse off (probably actually better off when you take into account the surrender value).

NU endowments are typically quite good. The have a record of using illustration rates which understate the potential returns (done partly to time bar more people). So, when the financial loss is calculated, it turns out that there is no or very little loss. That usually means its a good endowment (although not always as good endowments with high surrender penalties can result in redress but bad ones with no surrender penalties may not).

pnw72

Hi
Sorry, haven't checked back for a few weeks.

Thanks for the replies

So I guess as NU endowments are quite good, I should accept.

What would happen if I said I wasn't happy with the amount of compensation? Would they recalculate?


Best regards

don473

RBS
£1600

I don't regard this as a win. My shortfall of £6000 went to £15000 and then £18000 after the cheque was cashed. So the bank still has me screwed. I've been paying my mortgage for 16 years and i still owe £10 more than i borrowed. With 9 years to run i wonder how much i'll have to pay to own my home?

The problem is the life cover component. I wasn't told it would rise annually. At the start it was approx 8% of the premium, now it's almost 80%. So what chance did the plan have to achieve it's target? NONE.

dunstonh

What would happen if I said I wasn't happy with the amount of compensation? Would they recalculate?

They will tell you that if you dont like it then tough, take it to the FOS who will then hold up your claim for a few months only to tell you that NU used the correct calculation method.

I don't regard this as a win. My shortfall of £6000 went to £15000 and then £18000 after the cheque was cashed. So the bank still has me screwed.

Your choice to stay with the endowment was yours. If you had surrendered it at that point and switched to repayment mortgage then you would not be worse off. You made that choice. Not the bank. You were given redress to allow you to do that but you chose something different.

The problem is the life cover component. I wasn't told it would rise annually. At the start it was approx 8% of the premium, now it's almost 80%.

Typically that is not the case. Endowment premiums remain the same unless you have a low start mortgage. The actual cost of the life cover is averaged over the policy.

ger01

hi all

like others on here we arranged an ewndownment with Allied Dunbar in 1992 to fully cover a £60,000 mortgage. The risks were not made clear and the primary focus was on the extra funds the scheme woul provide upon completion. We have recieved the usual red letters for the last few years and it is obvious the scheme will not cover the majority of the mortgage (though we have since changed to a repayment) and have kept the endownment going as a saving scheme.

Around 3/4 years ago I registered a formal complaint of mis-selling only to be told by the FSA and Zurich (who now own Allied) that the time in which to make a complaint had passed so no consideration of our case could be made.

Having perused most of the 91 pages on this topic it seems it is worth having another go. Can anyone advise on how best to position the complaint taking into account the time lapse? Also, very early on in this thread there was reference to a website and a letter. This site is now non-existant but if anyone has any material that would be great.

Thanks in advance for any support and advice
Ger

dunstonh

Can anyone advise on how best to position the complaint taking into account the time lapse?

You cant. You have 6 months to appeal the original decision. Once that passes you lose your right to claim again in the future.

Artimus

I too took on Lloyds TSB & Scottish Widows over 2 x Endowments. Firstly I sent letters explaing how I was basically abused when we were a young family starting out on the home owning road. They returned forms to me and I returned them after completing them on my own (decided I did not want to give a slice to a firm). I submitted as much paperwork I had retained (hoarder me - not a savvie record keeper !), much of it meant nothing to me but I could see had something to do with the policies I was complaining about. I copied what I sent and retained original documentation, having sent it via recorded delivery. Some 6-8 weeks later I was offered approx £6,500 between the 2 companies. It took me years to convince myself I might have a chance and people like Martin made me do it. If you are thinking about it and are unsure, please give it a go.

Ex-Spendaholic

Legal & General

£1730.07

Sent off the template letter in July 2008. Received a questionnaire and completed it. Received a letter late August/early September saying that everything was ok and that the complaint had been rejected.

Then received a totally different letter in October saying that they had found we would have been better off with a repayment mortgage and would compensate. As I had sold the endowment policy they asked for proof of what it sold for. I was unable to provide this but told them that it was around £3200.

Received a letter on 31 October offering £1730.07 in compensation. The cheque appeared on 14 November.

Thanks to Martin for raising the issue. :beer:

skiing_sloth

Abbey National
1987-2012
Endownents expected payout £60000
£7500

I started my claim 2 yeass ago when i contacted an Independant body who wanted 25% if I should win my claim. I didnt take them up on it and began my own claim. Family circumstances meant i that although i had made the initial complaint, I did not fill out all of the forms Abbey sent me.

Here I was, two years later and wonddering if i had missed my chance. I read Martins articles and thought I had nothiing to lose to try again. I used his template and then added my own comments about my abandoned previous claim. Abbey rang me about 2 weeks later to go through a few details. I was hoping for around £4000. I have just received an offer of £7500 and have accepted it.

My advice would be to claim now. You have nothing to lose...exxcept a few grand!

Tim_Whalley

Hi
I have been reading the posts on here for some time.
Must say it has earned me £2600 for an Abbey missold Endowment
YIPEE :T and didnt pay any money in after first payment (about £40-£80) 12 years ago
Sent letters and hey presto phone call from them saying they were looking into it then two weeks later offer on the table

At FOS stage for three ppi claims
Thanks to all who help on here

:money:He,s the man