Report Endowment Misselling Compensation SUCCESSES

SMB1976

Good luck Ian - please let us know how you get on. We are still waiting for a reply from such a company - we filled in their questionnaire and returned it a few weeks ago.

Melly45

My endowment(without profits] with standard LIFE matures in Oct 2012 after 25 years ,Several years ago I won my case for missold policy{Bradford & Bingley) but did not get a penny as I had knocked £7300 of my £17300 mortgage so was told my policy would cover my final payment so I would not suffer financial loss my policy prediction without any bonuses is £9872 (RECEIVED THIS WEEK }my remaining mortgage is £10000.Such is life

ian1969uk

Got letter this morning, far better than I could have hoped. Offer of £5060 to be paid into my bank account :beer:

Tingtong11

Hi
I know this maybe a shot in the dark, but, would appreciate some advice....
In 1990 I went to the Loughborough Building Society for a mortgage to purchase our council house, we asked for a 25yr repayment and the Manager gave us a print out of the monthly costs then gave us another printout of monthly costs for a Guaranteed 'with profits' Legal & General Endowment (I still have these print outs) & said that as the payments were practically the same we would be better off taking the endowment as it would pay the £16000 mort and give us a £4,200 profit!
When I started receiving shortfall letters I did not take action as I thought it was just a 'ploy' to get me to purchase another policy.
Now being older & wiser & realising we will be lucky to get £7000 when it matures in 2015 is it worth me pursuing this to recover some of the shortfall?

magpiecottage

Firstly, you clearly knew that you could take out a repayment mortgage, which guaranteed to pay off the mortgage at the end of the term (provided you met the monthly repayments as they fell due).

You would also have been provided with an illustration showing the maturity value if returns of 10.5%, 7% and somewhere in between where achieved. The 10.5% value would have been more than the mortgage but the 7% one would have been less (the "in between" figure probably equalled your mortgage).

So you would have known there was a possibility of a shortfall with an endowment mortgage that could have been avoided by taking a repayment mortgage. There would have been no possibility of a surplus but also no possibility of a shortfall.

So, based on the evidence, it looks like you were prepared to take the risk in the full knowledge that you did not have to.

Over the summer I made the same argument in defence of a complaint and an adjudicator at FOS has just reached the same conclusion.

In addition, you confirm that you have received warning letters from Legal & General. One of these, in all likelihood, will have given you a deadline which will have passed, enabling a complaint to be timebarred.

Cazza57

Lender Halifax
Halifax Home Plan (PEP/ISA) £45k started 1996
Just been offered over £4k from Halifax despite having no paperwork to support. They were fantastic on the phone and made me an offer in less than a week from my initial complaint date.:T

sgo425

I'm looking into this on behalf of my mother and father.

A few weeks ago they received a letter informing them of a projected shortfall of £15,000 on their £34,000 endowment mortgage they took out in 1997 with RBS. It's due to end in 5 years, so I suppose that could get even larger.

This is the first they have heard of it, and obviously came as a massive shock. It seems that annual statements were sent out to an old address (the house my parents lived in before they took the mortgage out).

I've spoken to my mother about this and she seems pretty clueless about it all, to be honest. It seems to me that they had no idea this was a possibility, and they were under the impression that the mortgage would end on the day of my father's retirement (his 65th Birthday).

At the moment I'm simply reading as much as I can to see if they have any chance of claiming. I've asked my mother to dig out all of the paperwork she can, but my primary concern is that it's been left too late. It's been 15 years a a few months since they took it out (July 1997, I believe), and I've read in places that there's a 15 year cutoff. Is this the case?

Either way, is anyone kind enough to offer some advice?

Grunthos_the_Flatulent

I'm a new member to this site (very impressive by the way) and I have a strong hunch my question has been posed and answered numerous times before. So with my apologies for that, here it is: I took out an 25yr endowment policy with the Woolwich Building Society in 1989 to repay a £81,000 mortgage. The Woolwich then sold my policy to Barclays, who then sold it to Phoenix. I've had 2 or 3 warning letters from Phoenix in the last few years but had already resigned myself to a pittance of a payout. The last one showed a range of payouts between £35k and £40k. I still recall the Woolwhich sales guy in the shiny suit telling me how I'd have cash to burn after paying off my mortgage but I have no documentary evidence of this. Am I too late to put in a misselling claim? A call to the SFA suggested I had a slim chance

dunstonh

Am I too late to put in a misselling claim?

Are you timebarred? over 3/4 endowments are. You get three years from your first notification of a high risk of a shortfall. Most of those started around 2001-2003. If you are not sure then you can ask Phoenix.

A call to the SFA suggested I had a slim chance

The Scottish Football Association is probably better off sticking to football.

portlandboy

In 1988 we had been refused our first mortgage but were offered a Legal & General endowment by an L&G agent on the proviso that paying an endowment before having a mortgage would reduce the term needed on any subsequent mortgage.
It was performing OK for about 18 years, then we got the "amber" and "red"warning letters so we claimed for mis-selling. It was upheld on the grounds that when we first had it, we didn't need it. We had around £8,000 compensation, cashed in the endowment and paid off the 25 year mortgage after 20 years.
To be honest, I think having the endowment a couple of years before a mortgage was in our favour since we saved interest by reducing the term, so I wonder if having an endowment early should have been the way to sell them in all honesty