Report Endowment Misselling Compensation SUCCESSES

saraho_3

dunstonh wrote: »

£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

We have made some overpayments which were taken into account.

I have no idea what the surrender penalty is; time to get in touch with them for more information...

I think we are going to accept the offer... and then onto the next tricky question of whether to keep or surrender

mayb_2

I don't remember anything about a surrender penalty on an endowment mortgage - certainly not been an issue with either of the endowments we cashed in. If you keep this going knowing that it had a red warning attached to it and in the present climate, you have to accept the risk that it may be worth less depending on performance when it finally matures.
If you take what you can now and pay it off the mortgage that is money paid off in real terms and further overpayments will make a real dent in the amount owing. You are cutting down on your interest payments and no savings are going to match what the mortgage would be costing you in terms of interest. So paying off the mortgage is a good way of saving money. However, you can arrange a repayment mortgage and carry on with the endowment too if you want to hedge your bets and you can afford to take a chance on it. It is back to your attitude to risk really.

dunstonh

I have no idea what the surrender penalty is; time to get in touch with them for more information...

I think we are going to accept the offer... and then onto the next tricky question of whether to keep or surrender

If the surrender penalty is more than £2000 then the endowment is ahead of track (compared to repayment). If the surrender penalty is less than £2000 then the difference is effectively what the current shortfall position is now if you surrendered, paid the endowment value into the mortgage and switched to repayment.

I don't remember anything about a surrender penalty on an endowment mortgage - certainly not been an issue with either of the endowments we cashed in.

All endowments had surrender values that were lower than the current value. However, typically the difference gets lower as time goes on. Some totally removed the penalty after a certain number of years (e.g. year 15 onwards) whilst others would keep a penalty right up to the month before maturity.

itsdavid

I was called my a company who went through the details, said I had a great claim but they wanted 35%, glad I said that was too much, I will follow the advise and see what I can do, my last warning letter was £35K shortfall!!

nutty_nat

Hi

Can anybody help please.

I took out an endowment policy in 1991, it was done through Halifax Estate Agents. The policy was with Standard Life. I already had an endowment with Allied Dunbar for the same amount but the broker convinced me to cancel that one and take a new out with them. Being a silly 20yr old as I was back then I did as I was told :mad:

In 2004 we had lots of letters from Standard Life telling us that our policy would not cover our mortgage when it expired in 2016, so I panicked and changed my morgage to a repayment one.

I have only just become aware that you can claim for this, I spoke with the FOS this morning and that are sending me the paperwork to log a complaint. Do we stand a chance with this or are we far to late, I don't want to waste people's time. Also we were never ever advised that our policy would not cover our mortgage infact we were told we would get extra money from it. We paid £52.00 a month for 14 years which we completely lost. Out of interest if a claim is one what can you expect to get back.

Thank you sorry to ramble on

magpiecottage

nutty_nat wrote: »

I took out an endowment policy in 1991, it was done through Halifax Estate Agents. The policy was with Standard Life.

In 1991 Halifax were authorised representatives of Standard Life. Therefore it is Standard Life, not Halifax, that must deal with your complaint.

I already had an endowment with Allied Dunbar for the same amount but the broker convinced me to cancel that one and take a new out with them.

If it really was an endowment then it would amount to churning and a complaint would probably be upheld. However, you would need to show not only that it was an endowment but that it really existed. That may not be easy after all this time.

In 2004 we had lots of letters from Standard Life telling us that our policy would not cover our mortgage when it expired in 2016, so I panicked and changed my morgage to a repayment one.

It will depend what the letters said. If they gave you a deadline to make a complaint and it has expired then you will have missed the opportunity.

I have only just become aware that you can claim for this, I spoke with the FOS this morning and that are sending me the paperwork to log a complaint. Do we stand a chance with this or are we far to late, I don't want to waste people's time. Also we were never ever advised that our policy would not cover our mortgage infact we were told we would get extra money from it. We paid £52.00 a month for 14 years which we completely lost. Out of interest if a claim is one what can you expect to get back.

Thank you sorry to ramble on[/QUOTE]

nutty_nat

magpiecottage wrote: »

In 1991 Halifax were authorised representatives of Standard Life. Therefore it is Standard Life, not Halifax, that must deal with your complaint.


If it really was an endowment then it would amount to churning and a complaint would probably be upheld. However, you would need to show not only that it was an endowment but that it really existed. That may not be easy after all this time.



It will depend what the letters said. If they gave you a deadline to make a complaint and it has expired then you will have missed the opportunity.

I have only just become aware that you can claim for this, I spoke with the FOS this morning and that are sending me the paperwork to log a complaint. Do we stand a chance with this or are we far to late, I don't want to waste people's time. Also we were never ever advised that our policy would not cover our mortgage infact we were told we would get extra money from it. We paid £52.00 a month for 14 years which we completely lost. Out of interest if a claim is one what can you expect to get back.

Thank you sorry to ramble on

[/QUOTE]

I thought it would be Standard life but the FOS told me it is Halifax we have to go for which is the Bank of Scotland which did leave me confused. I had an endowment with Allied dunbar which I took out in May 1989 but unfortunately have no paperwork for that and probally it would not be able to be traced now, oh well I guess I have left if to late thank you for your advice.

dunstonh

I thought it would be Standard life but the FOS told me it is Halifax we have to go for which is the Bank of Scotland which did leave me confused. I had an endowment with Allied dunbar which I took out in May 1989 but unfortunately have no paperwork for that and probally it would not be able to be traced now, oh well I guess I have left if to late thank you for your advice.

I concur that Std Life would have the liability here. Its not uncommon for them to disagree between them though. However, Std Life have been active on the timebar front and I would estimate all of them are likely timebarred now.

Allied Dunbar is well timed out and you never gave it a chance. Cancelling it after 2 years meant it never built up enough and the equivalent repayment mortgage wouldnt have paid off enough to make any difference. However, tied agents shouldnt recommend surrenders like that and it looks like churning.

spaine

Hi,
I have an Aviva Endowment which was started in 1995. Was previously a Norwich union endowment and I think it was commercial union before then.

I've sent a complaint into Aviva for the mis-selling which they have responded that they can't deal with it and the Financial Advisor that deal with it in 1995 is no longer trading.

Where do I go from here ?

Thanks in advance.

dunstonh

spaine wrote: »

Hi,
I have an Aviva Endowment which was started in 1995. Was previously a Norwich union endowment and I think it was commercial union before then.

I've sent a complaint into Aviva for the mis-selling which they have responded that they can't deal with it and the Financial Advisor that deal with it in 1995 is no longer trading.

Where do I go from here ?

Thanks in advance.

Aviva have no liaiblity as they didnt sell it to you.

First thing to do is check to see if you are timebarred. Most people are nowadays as the endowment issue is largely over. Your Aviva statements would tell you the date you were timebarred (if you are already timebarred, you need to look at older statements) or you can contact Aviva and ask them if you are timebarred. If they were PIA authorised then you can make a complaint to the FSCS as long as you are not timebarred.

Next thing to do is check to see if the financial adviser was regulated by the PIA or LAUTRO. A lot of advisers stopped trading in 1995 (particularly those linked to accountants) when LAUTRO ceased. If they carried on trading, the fell under the PIA/FSA regulation which also gives FSCS protection. If they ceased, then they never fell under that regime and no consumer protection exists.