Report Endowment Misselling Compensation SUCCESSES

dunstonh

fleetpete wrote: »

I can't remember who I sought advice from,and the seller was an IFA i'm pretty sure,he is no longer around.

It confirms what I suspected all along that my endowment doesn't qualify for compensation,which is odd as why would this company, I believe it is EMC,be remotely interested.

If it was an IFA and they are no longer trading (and have no assets) then you would need to rely on the FSCS and that is the August 88 date. As you signed up in April 88 then its a no-goer.

EMC have made the board in the past and are known to say anything to get people to sign up with them.

fleetpete

So basically why would they see any point in obtaining my signature if there was little if any chance of getting a result?

dunstonh

fleetpete wrote: »

So basically why would they see any point in obtaining my signature if there was little if any chance of getting a result?

The sales rep doing the phoning isnt the one putting the complaint in. They are paid for referrals. So, they just want people to agree to it. Its a complete waste of everyone's time except the sales rep.

fleetpete

ok thanks for that.

Lurpak_2

Hi

(New to this site)
I have 2 endowments, one matures 2013 and 2018
First one taken through advise of the Bank of Scotland, not sure if it was a IFA.
Second one taken through advise of the TSB, again not sure if an IFA.

Anyway, approx 6-8 yrs ago I increased payments due to the “short-fall” scare letters.
First endowment payments were increased by approx 30% and the Second by 25%

At present Growth Rate Projections of 8% 6% 4%

First endowment short by 2k 4k 6k
Second endowment short by 1k 7k 11k

Both with AXA.

Question is do I still qualify for a complaint?

ps I don't at present know who I would complain to, as at present have only had communications ref endowments from AXA and none via the banks or an IFA

dunstonh

First one taken through advise of the Bank of Scotland, not sure if it was a IFA.
Second one taken through advise of the TSB, again not sure if an IFA.

Unlikely.

Question is do I still qualify for a complaint?

You havent given a complaint reason. Why do you think you have a complaint?

Also, you are pretty much late for the party. Most endowments became timebarred from complaint in 2007/8. Are yours timebarred?

mayb_2

It is a very long time since I visited this board and it still suprises me that so little is being done to help people understand the issues with endowments. The hope is that claims will all die away once the final days of the time bars are done with and those who lost out can quietly be forgotten.

Lurpak you cannot claim for compensation because your endowment did not pay out the amount you expected it to. You can claim for redress if you believe that you were missold your endowment. This happens if you were not given sufficient information at the point of sale to understand the risk attached to an endowment mortgage. The company needed to record your attitude to risk and ensure you understood that the endowment could fail to meet its target depending on the performance of the fund it was invested in.

Should you be successful in your claim you would be put back into the position you would have been in, if you had taken out a repayment mortgage rather than an endowment.

Time bars relate to the letters you should have been sent warning you of a shortfall in the amount you will get to repay your mortgage at the end of term. If you received what is known as a red letter - one that tells you that there is definately a shortfall and you need to take steps to deal with it, you have I believe it is three years from that date to complain of a missale. You should receive another warning letter 6 months before that time is up and if you fail to act you are then timebarred from bringing a complaint.

I hope that helps.

saraho_3

Woolwich (now Barclays)

Compensation: £2k

This was for a 20-year 30k endowment (with critical illness cover) taken out in April 1999.

It was a bit of effort - originally wrote to them in August 2009 (following a red alert letter earlier that year), got the paperwork back to fill in, then sent it off but never heard anything back. Chased a couple of times, and then finally found out my completed form hadn't been received. Luckily I'd scanned it, so I just reprinted another copy, and then fairly shortly after that got this offer, where they agreed they couldn't demonstrate that the policy was appropriate for my attitude to risk or that any risks were properly explained.

Haven't got my head around the detailed calculations yet, but from looking on other threads here, the offer seems reasonable, given the size of the endowment... The main gist seems to be that we would have paid back £13k of that portion of the mortgage by now, if we'd been on a full repayment mortgage, set against the current redemption value of the endowment of £11k

mayb_2

Well done for chasing it up and getting your redress. I am assuming that you have also cashed in the value of the policy £11.000 and taken out a repayment mortgage now. When we were in a similar situation we were able to continue the life policy on our original mortgage without further medical evidence etc at the original price for that part of the endowment.

dunstonh

saraho wrote: »

Woolwich (now Barclays)

Compensation: £2k

This was for a 20-year 30k endowment (with critical illness cover) taken out in April 1999.

It was a bit of effort - originally wrote to them in August 2009 (following a red alert letter earlier that year), got the paperwork back to fill in, then sent it off but never heard anything back. Chased a couple of times, and then finally found out my completed form hadn't been received. Luckily I'd scanned it, so I just reprinted another copy, and then fairly shortly after that got this offer, where they agreed they couldn't demonstrate that the policy was appropriate for my attitude to risk or that any risks were properly explained.

Haven't got my head around the detailed calculations yet, but from looking on other threads here, the offer seems reasonable, given the size of the endowment... The main gist seems to be that we would have paid back £13k of that portion of the mortgage by now, if we'd been on a full repayment mortgage, set against the current redemption value of the endowment of £11k

£2000 is a low redress payment for a unit linked plan. That would indicate that it is not too far off what you would be on a repayment mortgage (if your surrender penalty is greater than £2000 then you are actually ahead). its one of those quirks of the calculation method