Too late for missold endowment?

harddunby

I had an endowment policy that i took out in approxamately March 1988. The salesman basically told me that it would pay my mortgage and at least the same amount again.

I put in a complaint at the appropriate time and the IFA reveiewed it and basically said no chance.

I complained to the FSA and they said as they were not formed until later in 1988 they could not take any action.

The endowment paid out and was about £8k short of the mortgage amount, not to mention £34k short on the "bonus" they should have paid me.

There must be dozens of people in this position. Firstly is there any further action that I can take now I can quantify the exact loss?

It seems grossly unfair they can get away with it.

If there is already a post on this subject please let me know.

Annisele

Afraid not. Regulation didn't kick in until April 1988, so you were just a little too early. I appreciate that that really sucks, but it is the way it is.

(I assume you mean you complained to FOS, not the FSA - if not, run it by FOS). If the policy was sold by an IFA before April 1988, FOS won't review it unless the IFA joined FOS's 'voluntary jurisdiction'. Very few IFAs did join FOS's VJ, so FOS has no jurisdiction to consider your case.

A court won't consider the case, as you fall foul of the 15 year timebar in the Limitation Act 1980.

dunstonh

It seems grossly unfair they can get away with it.

it seems logical to me. The sale complied with the rules in place at the time. To expect to have 2010 rules applied to a pre regulation 1988 case is unrealistic. It would be like prosecuting smokers who smoked in a pub 10 years ago despite the no smoking ban taking place later.

The endowment paid out and was about £8k short of the mortgage amount, not to mention £34k short on the "bonus" they should have paid me.

So probably not as bad as all that then. Remember endowment mortgages were cheaper on a monthly basis. So, if you take the monthly saving, periods of MIRAS or even double MIRAS you may not actually be much worse off. Plus, of course, you benefited from lower interest rates more so you more money in your pocket which you could have used to address that shortfall.

banks4u

Not true, I have dealt with Endowment compliants and you just need to contact FOS within 6 months of the final response letter. I suggest contacting them asap. If they reject the complaint, keep going to the Ombudsman.

dunstonh

Not true, I have dealt with Endowment compliants and you just need to contact FOS within 6 months of the final response letter. I suggest contacting them asap. If they reject the complaint, keep going to the Ombudsman.

That is incorrect. The FOS can only look at cases within its remit. It cannot look at cases that were applied for before regulation unless the retailer agrees voluntarily for them to do so. The FOS has already confirmed to the OP that it is not within their remit (on the assumption that the OP meant FOS when they typed FSA as the FSA have never looked at complaints and the response is what you would expect the FOS to say)

littlegreenfingers

FSA look at my case and gave me advice. Although am still in the same situation...want to surrender my policy and get all contributions back as the policy was mis sold.

dunstonh

FSA look at my case and gave me advice.

That is not what the FSA does. The neither look at complaints or give advice. They do not handle consumer complaints. Are you getting your "F"s mixed up. Was it the FSCS or the FOS?