Endowment payment

I am currantly claiming to the FSA for 2 miss sold policy,s 1988&1992
My qustion is that have just recieved a letter from ALBA LIFE for the policy taken out in 1988 stating that my lowcost endowment the monthly payments where to low(when the policy was sold 1988) and we should have been paying £5 extra per mth.
They are offering to make a ex-gratia payment of
£5.02x197 number of payments made so far,+5% compound interest,the question is should i accept this payment as surely they should make a payment for the full 25yrs and not the 16yrs we have been paying.
And also if they are offering this payment surely it proves i was miss sold in 1988.As they are quoteing that as the policy was sold by a inderpendant advisor(no longer trading) it,s not the problem.

Advise needed please
A thankyou is payment enough .

Replies

  • dunstonhdunstonh Forumite
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    Alba have no liability to pay any compensation if the product was not sold by their own salesforce.

    Their only liability is on an error caused at their end. What you have written suggests they acknowledge an error in setting up the endowment and will cover the premiums to date plus interest of 5%. However, from now on you will be liable for the extra £5.

    This is not an endowment mis-sale, its a clerical error and the method of compensation reflects that.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • plumb1_2plumb1_2 Forumite
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    Thanks for the reply,my miss selling claim was attitude to Risk and no choice etc of replayment opitions.
    So they are not liable to pay the full term of the policty if i reject the payment,is that wise?
    A thankyou is payment enough .
  • dunstonhdunstonh Forumite
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    that doesnt make any sense though. The insurance company isnt liable for the advice from an IFA.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • plumb1_2plumb1_2 Forumite
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    I suppose some money is better than nowt,and thanks for your opinion.
    A thankyou is payment enough .
  • dunstonhdunstonh Forumite
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    another thing is that method used for compensating you is one used for an endowment mis-sale. Its the method usually used for an incorrect policy or policy error.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • plumb1_2plumb1_2 Forumite
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    Thanks Dunston,a bit wise,r now.I will accept their offer and carry on with my FSA complaint.
    A thankyou is payment enough .
  • dunstonhdunstonh Forumite
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    You are aware that if you accept that offer, you cannot carry on the complaint with the FSA for that plan?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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