Report Endowment Misselling Compensation SUCCESSES

Pharaoh

I read on another thread about someone who started an endowment in 1987, and it was concluded that their case was a very weak one to pursue. This is similar to my circumstance. I started a 25 year interest only mortgage with Nationwide Anglia £20,000 (shared mortgage scheme) with a 'with profits' Legal and General endowment policy life assured at £21,950 to pay off the loan, which would mature in September 2012. Reviewing all of the paperwork, bonus certificates which I have from 1992 onwards, it can be seen that the amounts were not performing well.


I managed to raise money elsewhere and pay the mortgage off in September 2007 cashing in the endowment policy 5 years early for £14,600 I believe that the policy was mis-sold, as we were a young couple married in 1987 first time buyers, misinformed about various factors. In fact, I still know the man who sold it to us as he readily told us that he was earning £70,000 a year in 1987 and once he took me out in his high G-force, high performance, sports car.


I'm complaining very late in the day and I must have been in a coma for years because I had no idea about mis-sold endowments and I never received a 'red letter'. In fact, where I work we are told that if you don't receive a letter that is insured, by recorded or by special delivery signed for, then it cannot be verified that you did indeed receive that letter, and vice versa if you send a letter. I probably don't have much hope now considering it is very late in the day and the FSA regulations came into force on 29th April 1988 six months after I got the endowment, but I'm going to give it a go.... Or should I not bother ?

Sugarmouse49

I am also in the process of investigating endowment mortgages on behalf of my friend-who has suffered a lot of illnesses which have contributed to him not knowing about endowment compensation and prevented him from doing anything about it up until now. I think I will help write the letters for him and stuff, am still investigating where to begin really!
His Endowment is with the Halifax.
He says he wasn't notified of a shortfall, although I know somebody else with a Halifax endowment who said that the Halifax did send out a letter. I don't know if my friend didn't receive the letter, or didn't heed it if/when he did.

chris285allen

Hi There
I took out an endowment with John Charcoal(now Bradford& Bingley)/ L&G in 1988 with a friend as joint buyers. We both claimed in 2006 for misselling when red letters started to appear. We were both found in favour of, him receiving compensation of £3800 and me a big Zilch! This was because it was deemed that the policy was doing ok. Since then both his and my policies have proceeded on a downward trajectory of projected final value. I have tried through the FOS to get at B&B but to no avail apparently you only have one go. My question is, Is this true? And if so and I no longer have recourse to B&B can I go for L&G? My policy matures in May and I am worried that if I wait til then to see actual value will I still be able to seek against L&G if effectively our contract is over?

HAVEFAITH

Hi is there a link to a template form re mis sold endows?

salsten

Hi I took out a mortgage in 1998 with abbey and an endowment.but lost the endowment policy number I have not payed in to since 2001/2002 is there any way of tracking it

dunstonh

salsten wrote: »

Hi I took out a mortgage in 1998 with abbey and an endowment.but lost the endowment policy number I have not payed in to since 2001/2002 is there any way of tracking it

For what purpose? You are timebarred from complaint. So, it cannot be that reason.

samraj

dunstonh wrote: »

You have three years from being first notified of a high risk of shortfall. Pru were late to activating the timebar but you would expect you to be timebarred by now.

Phone up Pru and ask them if you are timebarred from complaining about the endowment. If yes, give up. if no, then you can still complain as long as you were mis-sold.

Phoned-up. Received a letter from Pru as a low risk customer as noted in their forms, I shouldn't have been sold Endowment Mort. Took in 1995 42k mortgage paying £79 per month for 25 yrs.From their calculations equivalent Capital Mortg. repaid 24365, surrender value 22734, difference is 1631. Been offered £1631 as compensation which is far less than others received here, their calculations don't seem right, can anyone validate this? Thanks

Popcoot

My husband got an endowment mortgage (with profits) in 2000 for £72,500 @ £135pcm with Friends Provident as a single person, first time buyer.

We bought a house together in 2008 and have two products for our mortgage, majority repayment mortgage and then we have an interest only mortgage for £60,00 of which we are using the endowment.

My husband has been receiving AMBER warning letters
4% = £52900
8% = £89400

I just don't get these figures?!?! If my husband was still in his original house it would be £22k underperformimg at the 4% rate!! Fortunately, we only have £60,000 as opposed to £72,000 to clear at the end of our mortgage term but we won't even have the money to do that by the looks of it!

I am now freaking out that we will not have enough to clear this. Does my husband have the right to make a claim. I've read a lot about only if you have a red warning letter????

magpiecottage

samraj wrote: »

Been offered £1631 as compensation which is far less than others received here, their calculations don't seem right, can anyone validate this

Not without knowing rather more about your interest rate history.

However you pay mainly interest in the early years and mainly capital in the later years on a repayment mortgage. This means you will have paid off significantly less than half way through the term so having £18K left on a £42K mortgage after 18 years sounds about right.

The surrender value is a matter for the insurance company to decide.

magpiecottage

Popcoot wrote: »

Does my husband have the right to make a claim. I've read a lot about only if you have a red warning letter????

To claim he must either surrender the policy or die.

If you mean complain then yes he can. However, by 2000 procedures were much tighter. I dealt with a case from 1999 that arrived in July last year. I rejected it in August, an adjudicator at the Financial Ombudsman Service rejected it in September and it then got put into a queue for an Ombudsman to look at it. The Ombudsman got to it in January - and also rejected it.

However the fact that it will not repay the loan at the lowest rate is not in itself cause for alarm. The original illustrations will have shown a shortfall at the lowest rate. It is simply showing that the policy does not guarantee to pay the target amount unless the policyholder dies before the end date.