Report Endowment Misselling Compensation SUCCESSES

nutty_nat

A quick update Standard Life called me last week asking me lots of questions about when we were sold our endowment, does anybody have any idea how they work out the compensation? Our endowment was £52.23 a month we had this for 14 years. The endowment figure it was covering was £40.500.

dunstonh

nutty_nat wrote: »

A quick update Standard Life called me last week asking me lots of questions about when we were sold our endowment, does anybody have any idea how they work out the compensation? Our endowment was £52.23 a month we had this for 14 years. The endowment figure it was covering was £40.500.

if the complaint is upheld, they compare it to where you would have been had you taken a repayment mortgage out (i.e. repayment mortgage balance vs interest only balance minus the surrender value of the endowment).

if you ceased to have the mortgage or you switched to repayment mortgage in the past, then the calculation point is done then. Not now.

eirelav1962

i did rec letter to say about the shortfall on my policy that the reason i went onto repayment as one of the shortfall was a high amount and i couldnt pay that amount when mortgage was due 2 finish i was never advised that ther would be any shortfall on my policy and after all these years it would be thousands short i must of been wrongly advised

nutty_nat

dunstonh wrote: »

if the complaint is upheld, they compare it to where you would have been had you taken a repayment mortgage out (i.e. repayment mortgage balance vs interest only balance minus the surrender value of the endowment).

if you ceased to have the mortgage or you switched to repayment mortgage in the past, then the calculation point is done then. Not now.

Am i correct in thinking that as I had the endowment for 14 yrs we would have paid off quite a chunk had it have been a repayment mortgage. This would be the figure minus the surrender value that they would have to repay us with.

nutty_nat

Good news Standard Life have upheld my complaint :beer:
Could somebody please look at these figures.

Value of your plan = £7,468.15
Amount you would have repaid with a repayment loan = £10,741.82
LOSS Amount = £3,273.67
Net Interest = £1,795.75
Total Compensation = £5069.42

Our endowment was supposed to cover the figure of £40,000 over a 25yr term and we had the endowment for 12 years.

Thank you :j

sarapru

Zurich
£7k

We started our endowment in 1999 and before long it was on amber alert. I thought we'd not qualify for misselling because we understood the risks involved with that kind of policy, but the performance estimate we were quoted was vastly overestimated. During a quick phonecall to Zurich about a different matter in Sept 2011 I mentioned it, and today, in November, we got an offer of £7030 in compensation. No paperwork, very friendly staff, no hassle at all. Just now need to sign one form and job done.

magpiecottage

sarapru wrote: »

I thought we'd not qualify for misselling because we understood the risks involved with that kind of policy

You were not missold to if you understood the risks

the performance estimate we were quoted was vastly overestimated.

The rates of projected growth were specified by the regulator, not the insurer or the adviser. Therefore this is not grounds for complaint.

During a quick phonecall to Zurich about a different matter in Sept 2011 I mentioned it, and today, in November, we got an offer of £7030 in compensation. No paperwork, very friendly staff, no hassle at all. Just now need to sign one form and job done.

My guess is that this was an Allied Dunbar policy, sold by its own salesforce, and the documentation proving you knew what you were doing cannot be found - so you got lucky.

cyclewalkbob

In 2006 following advice from Moneysavingexpert I claimed for endownment miss-selling and won over £3000. However, i am not sure if the latest advice is for a different set of miss-selling or just a reminder about the original advice?

Can anyone help me by letting me know. i do not want to be greedy and by error claim twice.

Cheers

bob

shadowleague

MMM, let me ask you some questions?

Do you want to absolutely know your mortgage is paid off at a set time in the future?

Or

Do you want this fantastic policy that has been receiving excellent returns, there is no reason why this shouldn't continue, its never failed to pay off a mortgage and give you a large cash sum on top.

Small print - The endowment plan may not pay off your mortgage and could potentially leave you with a MASSIVE shortfall? However, it will pay me a HUGE income

Which option do you want? - If people were actually told the real pitfalls or these plans maybe not many people would have bought them, maybe some people shouldn't stick up for them?

When I initially got into Financial Sales in the late 80's, the words above were never uttered. I was never lucky enough or mean enough to ever arrange one for anybody I never worked in the mortgage sector but knew 100's who did.

2sides2everystory

dunstonh wrote: »

Would or could? What evidence exists?

Any complaint you make will be against the agent. Not the insurance company ...

That's generally how the industry likes to receive its misselling complaints, dunstonh, but the evidence may well have been produced as a "prop" for the agent. In many cases in the late 70s and 80s at least, insurance company representatives were daily amd routinely receiving calls from their network of high street building society manager mates with serious leads (a sure thing actually) whereupon the insurance company printed the endowment mortgage versus repayment mortgage comparison illustrations on standard insurance company forms and then delivered them within hours to the high street building society managers to enclose as part of the proposal pack passed on to the prospective borrower. I rweckon I still have a few examples buried in my loft should I ever need to produce them!

The building society manager then followed up the proposals at the relevant time, and arranged for the insurance company reps to go out in the evenings and sign up the borrowers - hopefully for endowments not term assurance protecting a repayment mortgage! That, afterall was why building society managers and insurance company reps were "mates" !

Any business went through the lender's agency with the insurance company, but who really deserves the complaint - the postman perhaps, for delivering the failed promises?

The whole soddin' industry that modelled itself that way then pulled the rug, that's who :mad: