Endowment Mis-selling dead end

Lulu58

Hi

We have been trying to lodge a claim regarding the mis-selling of an endowment policy.

Checking back through all of our paperwork suggested that the agent was from Allied Dunbar which was subsequently taken over by Zurich Assurance. We duly went through the piece as per this website and Which, both of which provided excellent advice. Zurich replied that they had no records of this sale and that even if the agent was working for Allied Dunbar, he was at liberty to recommend products by another company. They went on to advise that we should contact Legal & General (the policy holder).

We contacted L&G who advised the sale was arranged by The Harrow Mortgage Centre. A quick check revealed that this company no longer exists so I contacted the FSA.

The Financial Ombudsman Service have advised that THMC was registered with FIMBRA and that the FSA can only investigate cases is the company is registered with them. Also, THMC ceased being members of FIMBRA in 1989 and never took up membership with any other body; also they have ceased trading (probably in 1989), as has FIMBRA.

I have just spoken with Which Legal who advise that as the company is no longer trading AND the policy is more than 15 years old (sold in 1987), there is nothing we can do. I wasn't aware there was a limit on the age of the policy - I thought many polices would have been sold 5-20 years ago?!

Any ideas as to what rock we might turn over next?

dunstonh

Any ideas as to what rock we might turn over next?

There are some confusions in your post.

Checking back through all of our paperwork suggested that the agent was from Allied Dunbar which was subsequently taken over by Zurich Assurance. We duly went through the piece as per this website and Which, both of which provided excellent advice. Zurich replied that they had no records of this sale and that even if the agent was working for Allied Dunbar, he was at liberty to recommend products by another company. They went on to advise that we should contact Legal & General (the policy holder).

Allied Dunbar were tied agents and only every sold AD policies. The fact it was an L&G policy means that AD could not have been involved.

The Financial Ombudsman Service have advised that THMC was registered with FIMBRA and that the FSA can only investigate cases is the company is registered with them. Also, THMC ceased being members of FIMBRA in 1989 and never took up membership with any other body; also they have ceased trading (probably in 1989), as has FIMBRA.

The FSA do not investigate any cases. That is not their remit. In this case, any FIMBRA firm that ceased before 1994 and didnt go on to get PIA/FSA authorisation means that you dont have any access to the FSA level consumer protections (as you had to be a PIA/FSA authorised firm to get those or become one when FIMBRA was abolished).

I have just spoken with Which Legal who advise that as the company is no longer trading AND the policy is more than 15 years old (sold in 1987), there is nothing we can do. I wasn't aware there was a limit on the age of the policy - I thought many polices would have been sold 5-20 years ago?!

Endowments started their decline in the early 90s and most providers had stopped retailing them by the late 90s with a few stragglers into the 2001/2. The last endowment provider ceased offering them in 2003. So, they have been gone a fair time now.

However, as you have no consumer protections through the regutory system, your only option is the courts. However, English law has a 15 year time bar. Even that doesnt matter as the firm no longer exists so you have no one to take to court anyway.

Any ideas as to what rock we might turn over next?

Its end of the road.

Lulu58

Thanks for your post dunstonh - very informative. Just to reply to a few of your points:

dunstonh wrote: »

Allied Dunbar were tied agents and only every sold AD policies. The fact it was an L&G policy means that AD could not have been involved..

We found some paperwork from Allied Dunbar and started there on the advice of the FOS as we do not have much in the way of documentation.

According to Zurich Allied Dunbar Assurance were ' ...at liberty to recommend products of another company if he felt that they were more suited to you than those within our portfolio.'

L&G have confirmed that the policy was sold to us by The Harrow Mortgage Company.

dunstonh wrote: »

The FSA do not investigate any cases. That is not their remit. In this case, any FIMBRA firm that ceased before 1994 and didnt go on to get PIA/FSA authorisation means that you dont have any access to the FSA level consumer protections

Apologies for my wording. I now understand the situation re FIMBRA, FSA etc.

dunstonh wrote: »

However, as you have no consumer protections through the regutory system, your only option is the courts. However, English law has a 15 year time bar. Even that doesnt matter as the firm no longer exists so you have no one to take to court anyway.

When I originally posted I understood that our options were severely limited, but I was rather hoping that someone on this board knew of a consumer agency who was taking up the baton on behalf of people like me. As I have researched more, I now understand the 15 year time bar.

As you say, it's the end of the road