All this talk about miss-sold endowments!!!

JodyD

Hello everyone, Im allways hearing about the miss selling of endowments and that people are now able to claim cash back, i have a question.

What about the people that were sold ISA backed mortgages?

These people are in the same boat as the people who bought into endowments and I havent heared of any help for them.

As you have probably guessed by now I am one of these people who bought into an ISA backed mortgage and I have suffered the same poor returns for my investment. Is there any help?

your advice is appreciated

jody

lisyloo

If you were mis-sold then you should be able to claim in the same way.

Note that poor performance is not a good reason for a claim.
You can only claim if you were mis-sold e.g. the risks weren't explained to you properly.

I don't see why there should be anything difference about ISA or endowment mortgages except that they are more recent and sellers have most likely tightened up on the paperwork.
This means you might not win a claim because they have made it watertight whereas with endowments the paperwork was sometimes so poor you could win a case because the seller could not defend themselves properly.

When did you take out your ISA?
What is it invested in?
I am asking because recently stock market performance has been pretty good.

JodyD

I ve had it about 6.5 years, its a mini equity isa

lisyloo

Why do you think it has performed poorly?
What is the return you have had?

It is quite normal to experience some market volatility with stocks and shares.
Are you sure this isn't just a bad patch?

What particular funds is it invested in?
Who recommended you that you go down this route?
Was it sold in connection with a mortgage, specifically to pay it off?
Did they advise you that there would be "ups and downs" with stocks and shares?
What figures did they use for their projections?

You may have been unlucky because the figures use for projections were revised downwards and I think that was in 2000.
You might have just missed this and been given overly-optimistic projections.

dunstonh

ISA backed mortgages are generally lower cost and better value then endowments.

There is no difference in the rules regarding advice and sale of ISAs compared to endowments. However, you would expect an ISA to be closer to being on track and 6.5 years ago was a great time to start as the crash happened right near the start. Thats what you really need when starting a long term contract as the units you buy then will be the ones that make the most money.

That said, some of the ISA funds are rather obsolete by todays standards and a review and switch of funds (which doesnt cost a penny if done correctly) can make sure its still current and suitable.

defender_of_the_weak

We regularly deal with ISA based claims they work exactly the same as endowment claims.

dragonsoup

JodyD wrote:

I ve had it about 6.5 years, its a mini equity isa

Presumably you have been using your ISA allowance each year to add to the fund?.