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Endownment Misselling problem
endownmentuser
Posts: 2 Newbie
Hi there, can any one give me some advice regarding our endowment.
Briefly we were sold an endowment in 1994. We were told that it would pay off our mortgage and give us cash in hand! We complained to Norwich Union (originally Commercial Union) who sold the policy. They told us to complain to the financial advisor who sold us the policy. We were told we could not claim compensation from the financial advisor's company and were sent a very short and abrubt letter. I therefore got in touch with the Financial Ombudsman who has just recently replied and said we do not have a case as we were given a form which said our policy may only make 7% and we needed 7.5% to cover the mortgage. I still believe that we were mis-sold the policy as obviously we were under the impression that we could not lose.
Can anyone give us some advice?
Many thanks.
Briefly we were sold an endowment in 1994. We were told that it would pay off our mortgage and give us cash in hand! We complained to Norwich Union (originally Commercial Union) who sold the policy. They told us to complain to the financial advisor who sold us the policy. We were told we could not claim compensation from the financial advisor's company and were sent a very short and abrubt letter. I therefore got in touch with the Financial Ombudsman who has just recently replied and said we do not have a case as we were given a form which said our policy may only make 7% and we needed 7.5% to cover the mortgage. I still believe that we were mis-sold the policy as obviously we were under the impression that we could not lose.
Can anyone give us some advice?
Many thanks.
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Comments
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You an appeal the FOS decision if you think it is wrong but you are looking at court action after that and there are no known successes on that front (apart from a few which succeeded on technicalities or going in by a different attack angle).
Being sold an endowment is not a mis-sale. If you were given correct disclosure and warnings then it is acceptable.
When the FOS says no, that is generally end of the line.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
At least if it is a With profits policy, as a CU policyholder you should be in line for a windfall from NU soon, which may help a bit with the shortfall
Trying to keep it simple...
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