Forward Selling of Endowments

Marymag_2

Never used a forum before but hopefully may be able to get advice.We have a company calling asking us to make a claim regarding forward selling of endowments. This means that because we were advised to start an endowment 2 years before we took out a mortgage the company is saying we were misadvised - is this correct

dunstonh

We have a company calling asking us to make a claim regarding forward selling of endowments.

The only company I am aware of still putting in complaints (most of which are dodgy) is EMCAS. With most endowments now time barred, the claims companies have moved on.

This means that because we were advised to start an endowment 2 years before we took out a mortgage the company is saying we were misadvised

That used to be a good complaint reason but it got abused and the counter argument got better and it stopped being upheld for many people.

As you started 2 years earlier, you would have avoided paying 2 years mortgage interest. Armed forces in particular were easily justified in having pre-sale endowments.

The main issue for you though is that you are likely timebarred. Are you?

Marymag_2

Hi

Thankyou for replying - we started the Endowment in 1991 and started the mortgage in 1993 - not sure if this means we are timebarred but the company you mentioned is the company who are calling us

opinions4u

How much did you pay in premiums in the first two years?

How much is two years interest?

Would having no policy have made you better off?

dunstonh

Time bar is related to having three years from being reasonably aware of a problem with your endowment to make the complaint. Most the insurers used the shortfall warnings to activate the timebar for complaints.

Marymag_2

Cannot remember how much we paid, but you have made a valid point Opionions4u - would we have been better off without a policy - ?

Dunstonh - within two years of starting the mortgage we cancelled the endowment because we realised there was a problem with them and changed to a repayment, so looking at it that way i think we may be timebarred

dunstonh

Dunstonh - within two years of starting the mortgage we cancelled the endowment because we realised there was a problem with them and changed to a repayment, so looking at it that way i think we may be timebarred

In which case, its over. You have 6 years from the start date or three years from the event (in this case the surrender), whichever is later, to raise a complaint.

As the last mainstream endowment retailed was in 2003, it's fair to say that the 6 year timebar could easily be applied.