Advisor appears to have tampered with original documents

Crazy_Saver

Hi dunstonh.

Thank you so much for all your invaluable advice.

Am sending all relevent copies of e-mails, letters, quotes etc., off to FOS today. I'll let you know when I hear anything from them.

Crazy Saver

matto

Seems to me like you have a better case than many.

I would have thought your advisor would have a better case if they stated that you needed the lump sum for the deposit. But having said that it would likely have been so small that is wasn't worth worrying about and your dvisor hasn't put forward that argument anyway.

dunstonh

Good luck and do keep us informed.

vinno65

Hi All,
Is it just me or is everyone missing the point that crazysaver basically paid rent for the first 4 years of this mortgage because some money grabbing salesperson churned their original endowment. The money spent on the interest payments on the mortgage must have ran to £1000's. I can not see how anything the advisor has done was to the benefit of crazysaver.

Hi Dunston, if you keep saying it sooner or later people will believe it! and thats a fact I saw it in a book of facts!

Crazysaver if this had happened in the street it would have been called a mugging!

regards Vinno

dunstonh

vinno,you will find that it has been said on this thread that the term extension on the original chunk is unlikely to be justifiable and no-one is saying it is.

Crazy_Saver

the policy that we surrendered was taken out with Reliance Mutual. commenced on 21.8.87. Premium £73.49pcm. 25 year term. To cover a £48k mortgage.

The new endowment was for 25 years taken out in Sept 91 with Eagle Star for a £60k mortgage. Premiums £71.20pcm. This is currently showing a shortfall of around £32k

Hi Everyone.

Firstly, Thanks must also go to Vinno for all your advice as well.

When I was putting all the documents together for the FSO last night, I found the surrender certs., for the old endowments. It was actually 2 policies due to the fact that we had to have a top up mortgage on our first property.
The total payout was £2608.37. I worked out that we paid in roughly £3500 over the four years. So another loss there!

Never mind, it all went into my covering letter.

Fingers crossed.

Thank you so much everyone!!!!

vinno65

Hi Crazysaver,

I'm not sure what happens in the cases of churning but this looks blatent. You might want to ask the FOS if the mortgage interest you paid for the first 4 years is also due back to you aswell or at least included in your outgoings when calculating any redress, because I 'll bet the second firm won't include it in any calculations they make if the miss-sale complaint is upheld!

regards Vinno

dunstonh

I'm not sure what happens in the cases of churning but this looks blatent.

We cant tell that it is. If it isnt documented then its dodgy. If it is documented and the reason is valid, then it's fine. There could be some valid reasons for doing it but in this situation and in reality, the chances of it being one of those and correctly documented is not likely.

I surrendered a plan recently for someone and it cost them £8000 for doing so. I then reinvested the surrender value. If that is all you know, would you state that doing that was dodgy or valid? Based on that limited information you cant tell, although some would jump to assumption and say dodgy. If I then went on to say that the annual management charges were lower on the new investment, the investment portfolio more suitable, that the initial investment was increased by £10,500 due to increased allocation and commission rebate and the 10 year projection figures on the old plan were significantly lower than the new plan on like for like growth rates, you then see that the "churn" was totally valid.

Its easy to jump to assumptions on limited information.