Wrong advice from Mis-Selling Claim Agency

nickjdavis

A few nights ago I recieved a cold call from one of these companies that offer to investigate any potential mis-selling of an Endowment (or similar) policy and win you compensation on the usual no-win no-fee basis.

I took out a mortgage in 2000 which was part repayment and part interest only. After listening to the mortgage co's advice I eventually took out an ISA as a vehicle by which to repay the outstanding capital at the end of the mortgage term.

Let me be quite clear....I do not believe that I was mis-sold the ISA...risks were perfectly made clear to me, my expectations were set that at the end of the period that there might or might not be enough to pay off the outstanding sum. We discussed my attitude to risk with regarding how my contributions were invested.

However...one thing that the company that rang me clearly stated to me was...

"you should never have been sold an ISA as a vehicle to repay your mortgage, it was even more risky than an endowment and that it was illegal (the word was actually used) for the mortgage company to sell me the ISA to repay my mortgage"

I've done some searching about and can find absolutely nothing that would indicate the statements above are remotely correct. Indeed searching some of the threads on these forums seems to indicate to me that it was just another alternative vehicle that was available to me.

Thoughts on the comment in italics please???

Comyface

WHAT?
WHAAAAAAT?
!!!!!!?
Seriously?
Naaaaaah, never.

The above comments represent my thoughts on the comment in italics.

GMS

Ask them to put their claim in writing.

They won't and that will be the last you hear from them.

dunstonh

After listening to the mortgage co's advice I eventually took out an ISA as a vehicle by which to repay the outstanding capital at the end of the mortgage term.

Thats how I do part of my mortgage and its been very good for me.

"you should never have been sold an ISA as a vehicle to repay your mortgage, it was even more risky than an endowment and that it was illegal (the word was actually used) for the mortgage company to sell me the ISA to repay my mortgage"

That is incorrect and totally illogical and indicitive of the rubbish these cold calling scamming claim companies are doing.

A S&S ISA and endowment (or pensions, or bonds or any other tax wrappers) are just containers for investments. They dont have any actual risk other than legislative (i.e. limits change or withdrawn).

You can in have the same investment fund in a life policy, S&S ISA or a pension. In that case it would be identical risk as its the investment that carries the risk. The risk is at fund level and the investments within it. Not the tax wrapper.

Also, it has never been illegal to recommend an S&S ISA for mortgage repayment. Indeed, had investment backed mortgages moved to the more cost effective PEP & ISA earlier, then we might still see investment backed mortgages being used more today than they are. It hasnt been unlawful either (which is probably the word the scumbag con artist, sorry claims cold caller, was looking for an not illegal).

These claims companies have no financial services authorisation or regulation and have no requirement for any financial services knowledge. Yet they are allowed to cold call people telling them that their financial services products were mis-sold. The current situation is completely stupid. I have even had a claims company cold call me and when I told them I was an IFA and did my own insurances, they still insisted I could put a complaint in. I did start to go into the fact that I would have to complain to myself, then decide if I should uphold my complaint and if so, i would then have to pay myself. However, she didnt even know what an IFA was.

magpiecottage

dunstonh wrote: »

I have even had a claims company cold call me and when I told them I was an IFA and did my own insurances, they still insisted I could put a complaint in. I did start to go into the fact that I would have to complain to myself, then decide if I should uphold my complaint and if so, i would then have to pay myself. However, she didnt even know what an IFA was.

Probably now working as an adjudicator at FOS!

Seriously, I have had them try it on with me when I have told them I defend the complaints they make.

CloudCuckooLand

Just a salesman making things up to trying to convince you to use their services.