what a waste of time

cheshpair

made a claim against abbey in 2005, ombudsmen found in my favour asked me to sign an acceptance form for the compensation, whoopee we thought aspecially as abbey apparently turned down 98% of claims, so we signed sent it back waited for the cheque, a letter from abbey a few weeks later informs us that because the comparison with a repayment is in our favour no compensation! talk about being tricked, now we discover it finishes next year with a shortfall, can we possibly claim small claims possibly and out of interest does anyone think the adjudicators may not be all that independent? and what a loaded system most endowments sold in eighties coming up to completion to late to claim and if you did claim and there was no shortfall at time you cant claim again.

luckyfool

Even if there is a shortfall and the FOS find it was missold, you still don't automatically get compensation. The compensation is designed to put you back in the position you would be if you had taken a repayment mortgage. i.e. When the calculation was done, as you paid less towards your interest only mortgage + endowment over all the years of the mortgage, the forecast shortfall was clearly less than the amount you had saved by making smaller payments, hence compensation = zero.

cheshpair

But they were not sold as a 5, 10, or 15, year investment and as such the final figure must be based on what they achieve over 25 years this was sold in 86 at the height of the scam i was 22 buying my first home i was fed the full story about being a rich man at the end of the 25 so low cost was not really part of the equation i think the difference was about £25 at the time

luckyfool

Irrelevant though. You benefited by paying £25 a month less over 25 yrs (25*12*25 = £7,500) as a rough calculation. You chose to continue with your endowment after the complaint was "resolved" and at that point you have no grounds for saying that you did not realise that it was an investment which might not achieve its target. You could have surrendered the endowment overpaid the mortgage with the proceeds, and converted the balance to repayment, but chose not to.

I don't have a dog in this hunt as endowments are before my time and I have no direct experience of either selling them, or the complaints process, but the above is my understanding of how the compensation works and is calculated.

cheshpair

we were asked to sign for the compensation payment in full and final by the ombudsman before we knew the amount no choice on that, then after signing told no compensation no collusion there then? the repayment option you propose was a non starter at the time for other reasons