Endowment red letter question

missusbandit

I've had mail problems since moving house about six years ago. In May my mail from Standard Life re: my endowment caught up with me, finally. The statement says "Red Alert" so I guess this is what they would call a Red Letter. I've just worked out that means I might theoretically be eligible for compensation - but I understand there will be a time limit on this and I guess this might not be the first Red Letter they sent me, just the first I received.

Does anyone know when the Standard Life policies deadline for claims is/was? Or is the deadline based on the sales organisation not the endowment provider? I _think_ I'd have grounds for a claim if I was within the deadline; the sales person told me that though the value of the endowment could go up and down and I shouldn't count on being able to cash it in mid-term, the endowment was bound to cover the loan by the end of the term. Plus there was no mention whatsoever of fees, just rates of return. The shortfall is pretty hefty; they are quoting 9-13k shortfall on a 30k loan.

dunstonh

I've just worked out that means I might theoretically be eligible for compensation

It doesnt mean that.

Does anyone know when the Standard Life policies deadline for claims is/was?

Most became timebarred between 2006 and 2008.

Or is the deadline based on the sales organisation not the endowment provider?

The distribution channel can use the timebar of the provider.

the sales person told me that though the value of the endowment could go up and down and I shouldn't count on being able to cash it in mid-term, the endowment was bound to cover the loan by the end of the term.

So you were aware there was risks.

Plus there was no mention whatsoever of fees, just rates of return.

These are issued at the start. The level of disclosure would depend on the year taken out. Example projections have no need to mention it.

The shortfall is pretty hefty; they are quoting 9-13k shortfall on a 30k loan.

Is that with or without the mortgage promise value? What example projection rates?

holly_hobby

Just because a policy has not performed to your expectations, doesn't necessarily mean it has been mis-sold - as Duns. has already stated.

You also say that you don't know if this is your 1st or 2nd red letter .... I would suggest its at least your 2nd red - and do fear you are out of time on this.

Notwithstanding this, you have mentioned that you were told the value of the endowment could go up or down (albeit you say only during the term), I am assuming from your statement that this was a unit linked endowment .. is this correct ?

It also indicates that you had some idea that the value of the endowment was not gte'd - why do you now think otherwise ....

Did you have any existing investment policies at the time of sale i.e other endowments (mge related or not) ?

You say the adviser stated that although the value of the policy was not gted, that it was "Bound to cover the loan" this is not the same as "will do" or "guaranteed to", and does suggest that the prospect of the policy not meeting its target on maturity was discussed in some context. What exactly was discussed, what questions did you post to the adviser regarding any concerns - do you recall ?

The fees you mention I presume you are referring to recurring policy fees, these would have been disclosed within the POS docs - and would not really be grounds for a successful complaint. Unless of course you are suggesting that you would not have taken the policy if you had known it had policy fees built into/deducted from the total monthly premium payable - and the pos docs do not disclose the application of policy fees (very unlikely in my opinion).

Speaking of which, what documentation do you have from the point of sale - i.e illustrations, policy terms/key facts, reason why letter(recommendation) etc ...

Regardless of whether any complaint is timebound or not ... as you are now aware there may be a shortfall at maturity, have you given any thought to how you are going to manage this situation ?

As it would be very wise to start making a plan of action ...

Hope this helps

Holly