Endowment cancelled. Any point in pursuing mis-sell

mikeashworth

Many years ago, 1998 to be precise I took out a mortgage and an endowment.

5 years on, realising that the endowment was already not performing very well, i cancelled it, when i opted instead for a standard repayment mortgage with another company.

Initially I do recall some very fancy looking projections for the endowment from the IFA.

My question is this.

As the policy was sold to me so long ago, i dont have the paperwork anymore, the endowment was subsequently cancelled by myself (after 5 years) when I noticed that it wasnt performing, is there any point in pursuing it?

Cheers

Mike

holly_hobby

Pursuing what ?

H

mikeashworth

Pursuing a claim for mis-sell on basis that projections (based on my recollection of them) were rather fanciful

holly_hobby

You can not be compensated for loss of expectation (lower than estimated performance).

The illustrations you recd were based on industry prescirbed growth rates, and were just that an illustration of what returns MAY be, not gted to be.

So on that basis there is no evidence of mis-sale - further to which the initial premiums (which can be up to the first 5 yrs - ie when you cancelled) go towards policy charges, growth really starts from yr 5 onwards.

From what I have read there is no evidence of a mis-sale.

Hope this helps

Holly

mrginge

mikeashworth wrote: »

Pursuing a claim for mis-sell on basis that projections (based on my recollection of them) were rather fanciful

Performance (or lack of) is not a valid reason for complaint.

McKneff

They werent 'fanciful' as far as I remember the illustrations were based on
2%, 5% and 7.5 or thereabouts. You also had life insurance cover for the time it was in force.

Presumably when you say 'cancel' you mean you cashed it in.

No miss seel here I'm afraid.

mikeashworth

McKneff wrote: »

They werent 'fanciful' as far as I remember the illustrations were based on
2%, 5% and 7.5 or thereabouts. You also had life insurance cover for the time it was in force.

Presumably when you say 'cancel' you mean you cashed it in.

No miss seel here I'm afraid.

Thanks Mckneff

dunstonh

Pursuing a claim for mis-sell on basis that projections (based on my recollection of them) were rather fanciful

1998 rates were not fanciful and ironically, the events of the dot.com crash and credit crunch could see many late 90s, early 2000s endowments go on to do very well as they would have benefited from the early period being able to buy investments each month due to high volatility.

However, the FSA sets the projection rates. Not the provider. So, you cant complain to the firm about that.

Plus, the FSA timebar rule could be applied here. You get 6 years from commencement or 3 years from being reasonably aware of an issue to make a complaint, whichever is later. 6 years from 1998 expired in 2004. 3 years from surrender in 2003 is 2006. So either one timebars you.

holly_hobby

Timebar would be relevant if this was a complaint re suitability - whereas your complaint is performance - which can not be complianed about or compensated for (as discussed earlier).

If it is suitability based, then in 2003 you demonstrated clear knowledge of the performance risks associated with the policy by switching your mge to C&I - to which the 3 yr time bar would be applied (3 yrs from knowledge of unsuitability) - with 2006 being the tipping point for having any submitted suitability complaint reviewed.

As Duns. states, any way round - this is a no goer compensation/complaint wise.

Hope this helps

Holly