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Bank refused to consider compensation

averagemummy
Posts: 119 Forumite
Hello all,
Has anyone ever had any success trying to claim for being missold an endowment with natwest? We had an endowment with them and wrote to them to complain a few years ago but they just dismissed it out of hand.
They said that according to the salesmans notes at the time everythiing had been gone through and we signed the paperwork. I do not believe the downsides were explained thoroughly enough. Hindsight is a wonderful thing but we were very niave 21 year olds and took his word on everything. Yes we signed it but I do think it was missold.
When we had the letter back from them after my complaint they put in the letter that they considered the matter closed and would not engage discussion in this topic again. But is there anything further we can do?
Has anyone ever had any success trying to claim for being missold an endowment with natwest? We had an endowment with them and wrote to them to complain a few years ago but they just dismissed it out of hand.
They said that according to the salesmans notes at the time everythiing had been gone through and we signed the paperwork. I do not believe the downsides were explained thoroughly enough. Hindsight is a wonderful thing but we were very niave 21 year olds and took his word on everything. Yes we signed it but I do think it was missold.
When we had the letter back from them after my complaint they put in the letter that they considered the matter closed and would not engage discussion in this topic again. But is there anything further we can do?
0
Comments
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The letter should mention the financial ombudsman - if it doesnt then it may not fall into their criteria - when was the endowment sold?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Everything doesnt need ot be explained, that why you have documents with Terms and Coditions on it. At 21 you were both adults.
As far as I know, you dont get 2 bites at the cherry and I would think you are time barred anyway.
When the whole endowment shortfall thing came about, no one was given compensation. If it was proven then calculations were made so that it put you in the position that you would have been in had you had a repayment mortgage so you wouldnt be any better off.
Lots of times endowments were taken out because the premium for the policy was a lot less than paying on a repayment mortgage so could afford it easier.
I think you are on a hiding to nothing to be honest.
Is the endowment still running.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
"Not explained thoroughly enough", infers some discussion re risks took place ..
Their decision letter must also have explained WHY your complaint was rejected, and should (to demonstrate good complaint handling) enclosed supporting evidence they based their decision on i.e photocopies of POS docs discussing risk (that you signed) etc, copy fact find esp if budget was a consideration and/or you already held existing investments, illustrations showing health warning re risks, your Reason Why Letter (RWL), and anything else in support of their decision.
Nevertheless, if they defended (and you complalined within the defined paramaters re red letters) , they MUST refer you to FOS - if you have only became aware recently that FOS was an avenue over to you, then I would challenge the time barred aspect when referring it to FOS now.
The reality I believe, is that their rejection letter probably did discuss option of referal to FOS (with leaflet enclosed), but that your recollections when writing this thread are a little different. (forgive me if the letter genuinely DOES not mention them at all).
As discussed above, "compensation" is just the difference in monetary terms
between an endowment backed mortgage (inc sv) and a capital and interest (inc life cover if reqd) mortgage, over the period the policy acted as a mortgage repayment vehicle. In some cases there is little difference, I've even seen gains on tihe endowment side - resulting in an upheld complaint and nil "compensation" paid to the complainant - so a justified complaint does not always result in a nice cheque !. Additionally in respect of an upheld complaint, many providers also insisted upon the cancellation of the LCE, some such as RSA didn't.
Holly0 -
The OP did say that they got their rejection letter 'a few years ago'make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
Yes - but if they only recently became aware of FOS assistance (which sounds unlikely TBH), I would argue this to be a mitigating factor re consideration of the matter following elapse of the time bar date.
I would be astounded, if the NW rejection failed to mention anywhere FOS referrals rights, and said in the same terms "and we won't engage any further", as they would have to review the matter, if additional evidence that may significantly effect the original decision, and which had not been made reviewed or considered as part of the original investigation process, was made available within a reasonable time frame.
The "we don't believe further correspondence to be beneficial in this matter" .. line is usually your last reponse, following a game of ping pong, where the complainant won't accept final decision (or amount of comp offered), yet can not produce any further supporting evidence, and/or refuses to go to FOS - so its a stalemate statement really.
Me thinks a bit of paraphrasing went on in the initial post, and there's a bit more to it !!
Holly0
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