Report Endowment Misselling Compensation SUCCESSES

dunstonh

As the policy was taken out in 1987, is there any chance of claiming for compensation?

A shortfall is not grounds for complaint. A complaint is effectively accusing the seller of misrepresentation of the product.

three quarters of endowments are now time barred. So, you may find that that is the main blocker. However, assuming he is in the 25% left who can still complain, if the endowment was bought through a sales rep of the insurance company then they will usually consider the complaint. If it was bought through someone who was not an agent of the insurer then you cannot as its pre regulation.

Kalagem

Mortgage Provider: Allied Dunbar (now Zurich)
Compensation: £32,500

We were mis-sold a pension-linked mortgage of £75,000 in 1987 by an agent of Allied Dunbar. We started our claim for compensation through the FOS in March 2003, my husband left the form-filling to me and I must admit there were times when I almost gave up. Just as well I didn't as in November 2005 Zurich awarded us compensation of £32,500 which was based on us taking out a repayment mortgage instead of the pension plan.

mayb_2

Well done you - it is a huge amount of redress and was well worth fighting for.

lrobertson19

Norwich Union

Compensation £571.09

It really is as easy as Martin advises. I wrote to my old endownment company after i cashed in the endownment in May 1996. The policy was for £19500 and was taken in out in July 1991 after i was advised that it was the best option.(At the time i was only 21yrs old). The policy ran for just under 5 years. It was surrendered in 1996 and i was give £1070.80 as the surrender value. When i wrote to the endownment company i gave all the details and after 4 weeks i was issued for a cheque for £571.09.

Great Stuff Thanks Martin:T

vickis007

Bank/ Provider Allied Dunbar now Zurich

Amount recieved £5,000


BIG thanks Martin for your advice........
We were sold a endowment mortgage back in 97, the amount needed at the time of maturity was 41k however recent statements showed it will only reach 27k a shortfall of 14k!! I contacted Zurich with template letters including a short paragraph from our own personal circumstances on 21st April and was sent a cheque for £5,000 on 16th May.
Well worth the time spent (albeit not much time!!) for the outcome.....I continue to recommend this marvelous website to all my friends and work colleagues!!! Thanks again Martin!!

Vicki & Mark

Crazy_Saver

Can someone answer a quick question for me please...............

In the case of churning, is the redress worked out on the churned policy or the new one?

Thank you;)

dunstonh

In the case of churning, is the redress worked out on the churned policy or the new one?

I put in a complaint on a pension case about 18 months ago that was resolved last year that involved churned policies and they unwound all the contracts that had followed the original one and paid redress on the basis of if the original had been kept. We were hoping for around £7000 redress but got over £18,000. The £7,000 was on the basis of the last one being unwound but they chose to unwind them all.

Crazy_Saver

Thanks dunstonh,

We have been offered "compensation" as the FOS have called it on two churned policies. I thought the redress was calculated on the interest etc on the payments made on the new policy up until the date it was sold in 2007 but the firm have worked it out on the two churned policies which were surrendered in 91. Is this right?

dunstonh

I dont think there is any standard on this to be honest. My "guess" based on past cases is that they look at the point the mis-sale began and calculate it from there. Remember that the cancellation/surrender of the old plan would have incurred surrender penalties. They need to be factored in as well. So, you should get more than just the return of premiums plus interest.

Crazy_Saver

dunstonh wrote: »

I dont think there is any standard on this to be honest. My "guess" based on past cases is that they look at the point the mis-sale began and calculate it from there. Remember that the cancellation/surrender of the old plan would have incurred surrender penalties. They need to be factored in as well. So, you should get more than just the return of premiums plus interest.

Spent a while trying to make sense of it all last night and it appears that the FOS guidline to the firm has been to work out the redress solely on the churned policies. The total amount is to be based on;

1. A = Return of all premiums paid from the start of the policies until they were surrendered in 1991.
2. B = interest on all payments made into the policies.
3. C = surrender value(which as you have said did incur penalties so was much less than we had paid in).
4. D = interest on A + B - C right up until we surrendered the new policy 2 years ago (Works out to 17.5 years interest!).

I'm still not 100% sure why the calculations are based on the churned policies and not the one that we were wrongly advised to purchase but I'm sure someone who understands the system will be able to shine a light on things for me;)

I can actually see a light at the end of the tunnel now!:D