Claims pre 29th April 1988

PaAnWi

I was sold an endowment mortgage in Nov 86 which I feel was mis-sold, and have all supporting information.

I used the Which template to write to the Independent Financial Adviser, then wrote to the mortgage provider (Std Life), then wrote to the Financial Ombudsman.

It appears the because my claim pre-dates the Financial Services Act, my only recourse would be legal action.

Do I now use one of the 'no win no fee' companies to pursue the claim, or just forget it as it was outside the April 88 Act?? Any advice gratefully received.

dunstonh

Do I now use one of the 'no win no fee' companies to pursue the claim, or just forget it as it was outside the April 88 Act??

No claims company will consider it. Time to call it quits

PaAnWi

Thanks dunstonh, at least I won't be wasting my time!:beer:

jm28cardiff

The IFA is no longer around I take it?

PaAnWi

Yes, still around - I wrote to them first. They said the info was given in good faith. They used Std Life indicative figures to show that I could make £78k on maturity. I still have the quote versus the capital repayment figures.

dunstonh

Doesnt matter if they are still around. Its pre regulation.

Loanbehold

As you suggested, give the no win no fee companies a try as a final attempt at redress. You might as well ask and you can't lose anything. Having kept all your documents will certainly be a help. However, the time limit for legal action may be the only obstacle.

My February 1988 mortgage complaint was upheld by my bank. Luckily the bank had agreed to follow the fsa's guidlines even though it was before the April 1988 date you indicated. Following the guidlines was a voluntary move on their part.

I can only comment on my own very limited experience but I was lead to believe that the Financial Ombudsman has no power to act on any mis-selling (under their regulation) prior to the April 1988 date you gave. This doesn't mean that you couldn't have claimed compensation, it's just that you must do it without their help and without their guidlines. It is probably why the Ombudsman suggested taking legal action.

So far the people you have contacted are your advisor (who probably doesn't wish to uphold your complaint) and the Financial Ombudsman (who doesn't have the authority to uphold your complaint). This is why legal action would have been your only route.

Because it was 1986 when you received the advice (although presumably later when you received notice of your shortfall), it may now be too late to take that legal action. I do think it is worth at least enquiring about though (I know I would). Please note that I may be way off with these opinions as my complaint went pretty smoothly and I only needed to seek out basic information.

dunstonh

So far the people you have contacted are your advisor (who probably doesn't wish to uphold your complaint)

What an idiotic response. It makes no difference to me whether a complaint is made or not.

This is why legal action would have been your only route.

Legal action is almost certain to fail. Very few that have tried this route have suceeded and its a high risk option. Not the sort of thing these no win no fee companies are interested in. Dont you think they would be advertising it if they could do it.

Also, how would you prove they had done anything wrong. There was no regulation then and it was caveat emptor. You would have to show that they lied about the contract. How do you do that?

EdInvestor

If your loss is uder 5k, you might like to try making a small claim in court.Start here:

https://www.moneyclaim.gov.uk/csmco2/index.jsp

Thousands of people have ow used the system to claim back illegal bank charges successfully, and there's no reason it can't be used for endowments as well.

dunstonh

Until an endowment matures, you havent suffered any loss or gain. So, at this point no loss exists.

Also, you have to prove that you were sold the contract with a guarantee that it would hit target. Thats a lot harder than the normal complaints proceedure which ignores much of the documentation that is issued and focuses on the factfind and suitability report. The court would take into consideration documents that the FOS wouldnt.

Loanbehold

I still think enquiries should at least be made with a legal representative, if you really do believe you've been mis-sold. Again, at this point, you have nothing to lose by asking. As I stated before, the time limit between the advice being given and now, would be a great obstacle. Dunstonh has indicated in his post that although risky, a few people have succeeded by taking the legal route. They must have retained enough information to prove the financial advisor had done wrong and that they were mis-sold. We don't know what information you have kept or how it could be used in law. That is why a legal representative is probably the best to give you that advice. whether you enquire with a 'no win no fee company' or a paid fee company is your decision.
In response to Dunstonh who seems a little disgruntled about my extremely passive comment about your advisor not wishing to uphold your complaint. I know in most businesses, people are told to admit to nothing. I can only assume that financial advisors have a similar unwritten rule. I still don't see why your advisor would wish to uphold a complaint if, as Dunstonh suggests, they think that it would be difficult for you to prove mis-selling for pre 1988 advice. I'm sure they would have the knowledge that if a complaint is made through them and is not upheld, some people will simply end the complaint there and then. This means there will be no compensation to pay out. As your complaint concerns pre 1988 advice, the financial advisor will also be aware that this is not covered by the regulations and the fsa will have little authority. This produces another obstacle in your path to compensation, which the financial advisor will be aware of. Some people will also give up at this point (which you are still deciding). Knowing all that and then assessing their own risk in upholding your complaint, I see no reason why they would initially wish to.
Again, ask a legal advisor who can properly decide whether you have the correct information as proof of mis-selling and also that it is not too late to take action. I do think the time limit is maybe the problem.
Ps. I had to google "caveat emptor". Seems like it's a little warning often used in the financial world.