AXA endowment mis-selling

Albert1970

Hi I was sold a 30-40 year AXA insurance/endowment about 1990-1991. I realise I was mis sold as I did not have a mortgage, was 21 years old and actually did not really understand what I was being sold. It was sold to me on an armed forces base in England. Can I claim this back??

dunstonh

I realise I was mis sold as I did not have a mortgage

Is it a mortgage endowment or a savings endowment?

It was sold to me on an armed forces base in England. Can I claim this back??

It was very common for armed forces to be sold endowments on the basis that when their time in the forces finished they would need to buy their own house. Leaving the forces would usually mean not enough time to start a mortgage with a sensible term plus no guarantee of employment means it may not have been possible to get a mortgage. At least not for a while.

There have been complaints about pre-sale mortgage endowments in the past but the FOS has not upheld them as they are usually justifiable. If it is a savings endowment then the fact you didnt have a mortgage didnt matter as mortgage endowment and savings endowments were set up differently.

Albert1970

Thanks, actually it could have been a savings endowment as I always thought endowments were linked to mortgages, thats how rubbish I am with money.

Albert1970

dunstonh wrote: »

Is it a mortgage endowment or a savings endowment?



It was very common for armed forces to be sold endowments on the basis that when their time in the forces finished they would need to buy their own house. Leaving the forces would usually mean not enough time to start a mortgage with a sensible term plus no guarantee of employment means it may not have been possible to get a mortgage. At least not for a while.

There have been complaints about pre-sale mortgage endowments in the past but the FOS has not upheld them as they are usually justifiable. If it is a savings endowment then the fact you didnt have a mortgage didnt matter as mortgage endowment and savings endowments were set up differently.

It was probably a savings endowment now you have mentioned it, sorry for my mistake. Does that change things?

dunstonh

Albert1970 wrote: »

It was probably a savings endowment now you have mentioned it, sorry for my mistake. Does that change things?

AXA were far more active in the savings endowment market than the mortgage endowment. So, it quite probably was.

It does make a difference as a savings endowment has much lower life assurance coverage. Indeed, the sum assured was often very small and used as a form of guaranteed minimum payment. In 90/91 the savings endowment was the main long term savings plan. There were no ISAs available then. If you wanted a long term plan then an endowment is what you got.

dacouch

Looking at the date eg Gulf War I, it's often difficult for armed forces to obtain life cover if they have a posting to a war zone.

Did the agent sell you the policy for the life insurance element as well?

Albert1970

I can't remember if a life insurance aspect was part of the policy. I sold it in 2004 as I felt £40 a month for 30 years was too high and at that time I could not afford it.
I do remember though at the time he said if I continued the policy I would be guarenteed about £30,000 on maturity which was probably why I took it out in the first place.

Albert1970

Do you think I should contact AXA or is it too late/waste of time?

dunstonh

Do you think I should contact AXA or is it too late/waste of time?

Probably too late. Under FSA rules you have 3 years from reasonably being aware of an issue or 6 years from the start to make a complaint. 6 year rule wont apply but the 3 year could as you sold it 8 years ago and time has moved on. It is hard to say without knowing the audit trail and what stance they decide to take.

Also, you havent identified any wrong doing yet. So, what would your complaint be?

I do remember though at the time he said if I continued the policy I would be guarenteed about £30,000 on maturity which was probably why I took it out in the first place.

Most plans of that era did have a guaranteed minimum maturity value. The bonuses were then added to that value.

Albert1970

Thank you, you have been very helpfull

dacouch

What were you planning to claim back if you're sold the policy