Mis-sold Endowment policies (x2) 1989/1990

HeadHunter_3

Hi Guys,

I really need your help!

I am just about to send my first letters of complaint to Adam Kennedy (agents, who are now franchises of Legal & General.....didn't know that when we took out the 2 policies) regarding mis-sold endowment policies as follows: I have contacted Adam Kennedy and they informed me that they are franchises to L&G and that I should send the letters to the L&G HO in Reading.

Policy 1) April 1989 - target £25,370 + "basic sum assured" of £7,400 + bonuses) on maturity, NOW showing a shortfall of the following (sept 06 "High risk of shortfall" letter from L&G):

£7,070 based on 4% growth
£4,320 based on 6% growth
£1,370 based on 8% growth

Policy 2) December 1990 - target £70,430 + "basic sum assured" of £21,552 + bonuses) on maturity, NOW showing a shortfall of the following (Sept06 "Highrisk of shortfall" letter from L&G)

£25,430 based on 4% growth
£17,430 based on 6% growth
£ 9,330 based on 8% growth

NB. the L&G letters state that "6% each year is currently a reasonable asumption for the rate of long-term future growth", so based on L&G's assumption, I am looking at a shortfall accross the 2 policies of approx £21,800 (excluding the lump sums, which interestingly there is no mention in the L&G "High Risk" letters. The letters also state that I have until April 07 to complain or I might lose any chance of compensation

Not only were we told that the endowments would pay off our mortgage, we were also heavily sold that we will make money and get at least £25k + bonuses (accross the 2 policies) which in the later years are considerable........

I have used the "Which" Endowment complaint letter generator and my 2 core reasons within each (2 policies, 2 claims) letter are :

* "The endowment was not suitable for me. The advisor did not explain there was a risk the endowment would not meet the target amount"

* "The advisor said the pilicy was guaranteed to pay off the mortgage. The advisor said there would be a lump sum in addition at the end of the term.

PS. i have not sent these yet as I await your expertise/input/comments about my situation.

Any tips, hints or comments would be greatly appreciated !!


What are my chances?
How much should I go after?,
Do I have a case?
Should I use more statements in "letter Generator" as some others also apply?

Many thanks in advance for your assistance.

HeadHunter

dunstonh

What are my chances?

We dont know. It all comes down to the documentation issued at the time and if they still have that documentation. L&G generally have a poor reputation but that doesnt mean everyone working for them was that poor.

How much should I go after?,

It doesnt work that way. If successful, you will get what you are entitled to. Nothing more, nothing less. The calculation method is defined.

Do I have a case?

Dont know. You could be telling lies as much as you are accusing the adviser of telling lies. Each case is different and documentation varies significantly.

Should I use more statements in "letter Generator" as some others also apply?

You should stick with what is correct for your case. Dont pad it out with statements which can easily be rejected as it can actually harm your case.

HeadHunter_3

dunstonh wrote:

We dont know. It all comes down to the documentation issued at the time and if they still have that documentation. L&G generally have a poor reputation but that doesnt mean everyone working for them was that poor.

I have the original "L&G Build -up Plan" documentation for the larger claim attached to a L&G "Build up Mortgage plan print out" issued by the sdvisor at Adam Kennedy stating the following:

"Investment - Investment into an endowment life assurance policy offers you the prospect of a substantial surplus cash sum after the mortgage has been repaid" (lol....this is on the L&G brochure I have)

"A low-cost with-profit endowment assurance designed to repay a £70430 mortgage at the end of the policy term, or on earlier death, using a basis accepted by all major lenders"

"Your future benefits"
a) a rate return of 8.30% pa is £70430 (target + gtd Life cover))
b) a rate return of 10.50% pa is £94900
c) a rate return of 7% pa is £57200

"At the end of the term, a guaranteed basic sum of £21552 will be payable to which bonuses will be added."

In line with this documentation, the worse case scenario they are quoting is £57200 + £21552 = £78752

dunstonh wrote:

It doesnt work that way. If successful, you will get what you are entitled to. Nothing more, nothing less. The calculation method is defined.

Do you know what the calculation method is or point me in the direction where I can find that out?

dunstonh wrote:

Dont know. You could be telling lies as much as you are accusing the adviser of telling lies. Each case is different and documentation varies significantly.

I hear what you are saying.....my word against theirs.....The documentation is key and I have a lot of it...I trust thay have theirs too......if they have I am in a good position as I am starting to see. For the record I am telling the truth.....you can see the figures and quotes from the documentation I have.

dunstonh wrote:

You should stick with what is correct for your case. Dont pad it out with statements which can easily be rejected as it can actually harm your case.

My thoughts too tbh, i just asked as I noticed on another post that "the more the better" was advised

Many thanks

HeadHunter

EdInvestor

* "The endowment was not suitable for me. The advisor did not explain there was a risk the endowment would not meet the target amount"

* "The advisor said the pilicy was guaranteed to pay off the mortgage. The advisor said there would be a lump sum in addition at the end of the term.

This sounds fine to me.

Keep it simple.

They have to show that they sold the policy properly and it's very unlikely they will have the paperwork to prove their case now.

Some companies are suspected of operating what you might call a "mechanical" strategy on endowment complaints along the lines of accept 2, reject one, regardless of the actual complaint, :rolleyes: So if you get rejected, take it straight to the ombudsman, don't delay and you'll probably be OK, as they are banking on the 'inertia factor' saving them money..

HeadHunter_3

Thank chaps,

I will send the letters today to L&G and keep you posted

Cheers :beer:

HeadHunter