Endowment

town.clerk

Dear Forum Members,

Can anyone please assist?

I have complained to Co-operative Financial Advisers about my Scottish Amicable (now Prudential) Policy for £47,000 maturing in 2013, with a predicted shortfall in range £5,000 – £10,800. This policy ran in parallel with a Co-op Bank mortgage.

Having written to my local bank branch, who I recall set the whole thing up in 1988, the Bank head office is alleging that the policy was taken without their advice etc. and they didn’t assess my financial circumstances at the time because all I wanted was a “low cost policy”. I have a copy of this letter in 1988 which did state they do not have a note of my personal circumstances, but would be happy to discuss alternatives if I wasn’t happy.

This letter virtually alleges that it was a pure execution only process. Like many subscribers on this web site , I do not have any copies of the original correspondence, but I do recall a chat with their branch bank manager who provided a short list of 3 insurance companies. I selected Scottish Amicable from this list.

I am going to write again (deadline July 2007) to complain that the risks were not explained, my financial circumstances should have been taken and that the maturity date was later than my intended retirement date.

I would love to hear from any successful subscribers with any suggestions.

Many thanks
Alan

dunstonh

I have a copy of this letter in 1988 which did state they do not have a note of my personal circumstances, but would be happy to discuss alternatives if I wasn’t happy.

Works in their favour.

I do not have any copies of the original correspondence, but I do recall a chat with their branch bank manager who provided a short list of 3 insurance companies. I selected Scottish Amicable from this list.

Thats not execution only as it stands under todays rules but would have been fine for 88.

I am going to write again (deadline July 2007) to complain that the risks were not explained, my financial circumstances should have been taken and that the maturity date was later than my intended retirement date.

None of this matters under execution only. They dont have to concern themselves one bit about that. If you dont give them your personal details, then they cant give you advice.

Even if you manage to get the decision overturned, I wouldnt be hoping for a redress payment. Scot Am policies are very good and currently stand at a 96% success rate at paying out surplus. (95% in 2005 so trend improving). 1988 was a good time to start one as well. Shortfall projection letters are not reliable due to a number of flaws and shouldnt be used as the only consideration when looking at what is likely in the future.