Endowment shortfall-Template to complain?

barel

Hi, We have been informed by our building society that the endowment will no longer meet the cost of our mortgage. I remember seeing templates for this problem on the site - can't find them now. Can you advise me please? Thanks.

McKneff

You will have been getting red warning letters re shortfalls for many years now.

Too late to complain I'm afraid. You are time barred.

There are other things you can do, extend the mortgage, take a loan out. Use savings if yu have any

Thrugelmir

barel wrote: »

We have been informed by our building society that the endowment will no longer meet the cost of our mortgage.

You should have been aware of this some years ago.

Why is your building society writing? Should be the assurance company.

holly_hobby

Loss of expectation (ie failure to perform to estimated targets), is not a basis of complaint.

Mis-selling is based on suitability (or mis-represntation), with respect to a low cost endowment sale, you had 3 yrs from receipt of your first red or amber letter to bring any complaint (assuming you were unaware of the investment risks associated with the contract before that time) - which initially commenced circa 2000.

To argue against the timebar you would need to demonsrate and have the provider/FOS (financial ombudsman svc) accept the extenuating circs you may claim that prevented your complaint being raised within the 3 yr watershed period quoted earlier.

Hope this helps

Holly

barel

I feel fortunate that I have received two replies to my request. Obviously they are far more knowledgeable than I. Yes, it was the assurance company who contacted us. However, we have not been informed of the short fall for years. We were informed, for the first time, just over a year ago. Was hoping someone would be able to advise on where the template is? But alas - no

holly_hobby

If the first red letter (i.e anticipation of shortfall to target), was only issued by the provider 12 mths ago (which I do feel is doubtful), or more likely they sent previous ones to an incorrect address (despite you can prove they having knowledge of your correct address - which we know they do at least now have, evidenced by your recent reciept of recentred EMV)s, then you are eligible to complain re SUITABILITY.

You don't need a template letter, as the reason why a policy isn't suitable to you will be different for the next person - in the first instance all you need to do is complain directly to whomever sold you the policy ( a claims company is also not reqd), and just simply and basically say why you feel the policy wasn't suitable to you at the time it was sold.

Here for assistance is also a direct link to FOS which will guide to through the LCE complaint process with some FAQs which may assist -

http://www.financial-ombudsman.org.uk/faq/mortgage.htm .

Hope this helps

Holly

newtonflotman

Barel,
I have a complaint which has been taken up with the FOA against my endowment provider even though I have had 'Red' letters for 5years !!
Check the small print in your policy and ensure your provider has correctly managed your fund as laid out in your Policy Document.
My Policy was started with Natwest Mortgages then they transferred it to Aviva. Aviva appear to of not managed my fund correctly, not paying stated annual bonuses and my original documents state that the annual review WILL ENSURE no shortfall, any action i.e altering premiums will be done automatically and the policy holder notified.
Nothing of the above done at all. Plus when I complained to Aviva, they sent a letter stating all the charges initially on the policy. These do NOT resemble anything like what is in my original documents.
Anyway FAO on the case now -been told 4-12 weeks.
SO DONT GIVE UP JUST BECAUSE YOU HAVE HAD A RED LETTER BEFORE. IF THE POLICY HAS BEEN MIS-MANAGED IN ANYWAY CAUSING A SHORTFALL YOU HAVE THE RIGHT TO COMPLAIN.

holly_hobby

newtonflotman wrote: »

Aviva appear to of not managed my fund correctly, not paying stated annual bonuses and my original documents state that the annual review WILL ENSURE no shortfall, any action i.e altering premiums will be done automatically and the policy holder notified.
Nothing of the above done at all. Plus when I complained to Aviva, they sent a letter stating all the charges initially on the policy. These do NOT resemble anything like what is in my original documents.
Anyway FAO on the case now -been told 4-12 weeks.
SO DONT GIVE UP JUST BECAUSE YOU HAVE HAD A RED LETTER BEFORE. IF THE POLICY HAS BEEN MIS-MANAGED IN ANYWAY CAUSING A SHORTFALL YOU HAVE THE RIGHT TO COMPLAIN.

Your complaint has nothing to do with poor performance, its to do with maladministration (and were not talking fund managers not ensuring the policies matured to target) which is why FOS are looking at it (I assume AVIVA have rejected your complaint as unjustified).

From what you have stated, your review will be conducted on the provider failing to adhere to the contractual terms of the application NOT POOR PERFORMANCE, in that you claim AVIVA failed to administer the addition of reversionary bonsues (which you should note are NOT a gted term of the policy, but wholly dependant upon declaration achieved by the performance of the WP fund), you also claim they failed to inform you that it was recommended that you review (increase) your policy premium with a view to keeping the policy on track to meet the target sum at maturity (what action would you have taken if that did occur ? i.e would you have accepted the premium increase, have kept things as they were waiting to see what maturity brought, or switched to a repayment mortgage ?).

The reason why yours may be looked at 5 yrs after your red letter (but may not be upheld), is that your complaint is nothing to do with EMVs/performance and suitability but contractual issues - however you should note that your complaint may still be time barred for different reasons re discovery and action.

Hope this helps

Holly

dunstonh

I have a complaint which has been taken up with the FOA against my endowment provider even though I have had 'Red' letters for 5years !!

Who is the FOA? The initials dont match anyone to do with financial services.

Aviva appear to of not managed my fund correctly

That is a serious allegation to make. There has been no hint of any such thing in the financial press. So, what evidence do you have to support your allegation?

SO DONT GIVE UP JUST BECAUSE YOU HAVE HAD A RED LETTER BEFORE. IF THE POLICY HAS BEEN MIS-MANAGED IN ANYWAY CAUSING A SHORTFALL YOU HAVE THE RIGHT TO COMPLAIN.

And expect it to be rejected as its a farcical complaint reason.