Mis-selling - Just checking who I complain to

Jonny_B_3

Hi all

Finally decided that I should complain about the mis-selling of my endowment.

Its a Norwich Union one but am I right in thinking that I complain to the advisor's company, not Norwich Union? If so, are they ever going to admit it was mis-sold?

Think I'm missing something obvious!

Cheers in advance

EdInvestor

Complain to whoever sold you the policy.if you're not sure, ask NU, they will tell you if it's them or someone else.

IFAs often fight cases, even if they are clear cut and require you to go to the FOS, hoping that you will give up due to the hassle.So be persistent.Some lifecos do the same,but NU is pretty good .

dunstonh

IFAs often fight cases, even if they are clear cut and require you to go to the FOS, hoping that you will give up due to the hassle.So be persistent.Some lifecos do the same,but NU is pretty good .

In general terms, quality of documentation and advice is higher than that of tied agents. Perhaps the weakest area with IFAs has been the standard of record keeping after the sale. Something that many are now realising at great cost.

It doesnt affect your ability to complain. However, NU could have timebarred you already. What was the date of your first red warning?

Another thing to note is that NU endowments are generally not too bad and coupled with the endowment promise and terminal bonus (neither of which are included in the projections), you may find you are in a surplus position or not far off.

Indeed, I got a valuation on a with profits investment two days ago that was up 5% on the position a month earlier. NU had increased the terminal bonus at the beginning of January.

If you are going to complain, it may be worth finding out if your endowment is really off track or not. With NU, Pru (inc Scot Am) and some unit linked endowments there is a good chance of on track/surplus.

jamesd

The Guardian is reporting today that Norwich Union is saying that 89.5% of its 750,000 mortgage endowment policies will not pay the loans - are in the red zone - and that there have been more cuts to payouts on 25 year mortgage endowments.

It also reports that holders of pension plans are getting more than those holding pension plans that matured a year ago.

Norwich Union have also apparently stopped using amber warnings, an interesting move since it's red that starts the clock on time barring and this may cause more people to be time barred in the future.

dunstonh

You have to read this carefully and look at the politics of it.

More NU policyholders are in green than last year but because they no longer use amber there are more not going to hit target if you assume all reds wont hit target.

It also means that an endowment with just a £10 projection shortfall is now a red with them. It is clearly a move to start the time bar clock ticking on the rest of their plans.

Another point is that the projections NU issue do not include accrued terminal bonus to date or any endowment promise value from the 2001 statement issue. This brings more into the red by understating what they will get back later. This is highlighted by the comment: "Most final bonus rates have increased significantly, with all policies increasing in value in 2006," a spokesman said.

Final bonus is where the bulk of the return is nowadays.

jamesd

Yes, that's how I read it. Then I wondered about how this interacts with the FSA's treating customers fairly moves and concluded that it was pretty thoroughly contrary to their spirit to initiate time bars like that.

Using the terminal bonus isn't wonderfully friendly either, since that maximises the doubt in the mind of the customer. That and the other missing amounts makes me wonder what effect prompting people to leave early has on the ability of the fund to meet the obligations to the remaining customers.