old endowment mortgage

bigammer

can I claim for a miss sold endowment that I changed back in the late 90s. I was sold the policy in 1994, and it seems that endowments were already on the decline then. seems to me I paid five years of interest to the bank for nothing as I had to start from scratch again and to begin to pay off the full value. I think the point I am trying to make is if I was sold a normal repayment mortgage I would have already have paid five years worth of interest and capitol

dunstonh

can I claim for a miss sold endowment that I changed back in the late 90s.

No. You have 6 years from the commencement or three years from being reasonably aware of an issue to make a complaint. You sold it in late 90s. So, your opportunity to complain ended three years after that.

it seems that endowments were already on the decline then.

Not really. Most didnt fall short due to the dot.com crash in the early 2000s.

seems to me I paid five years of interest to the bank for nothing as I had to start from scratch again

You would barely have paid off anything on repayment basis either. However, you got a value from the sale of the endowment and there is a good chance it was more than you would have paid off a repayment mortgage.

bigammer

Thanks for clearing that up, also had three loans from the early 90s am sure had ppi on them. cant remember ever it being discussed though. On the last loan I do remember telling the wife whats that its as much as the loan repayments, never had ppi since as I always made sure I stated that I did not need it as I received full pay from work if off due to illness?

holly_hobby

Under FSA Treating Customers Fairly, timebarring (TB) in respect of mortgage (low cost) endowment complaints (under FSMA), is generally 3 yrs from receipt of your first amber/red letter i.e a proven clear indication from which you knew the policy may not meet the target figure at maturity, and thereby may not be suitable to you.

An earlier date for countdown MAY be used, IF proven that you had reasonable knowledge to be aware of the associated risks at an earlier point (or had knowledge that the policy was unsuitable for you for any other reason)

Coming back to mge related low cost endowment risk issues, the industry commenced the issue of revised EMVs for mge funding LCE policies, which commenced circa 2000 - and I would be very surprised if you weren't time barred (3 yrs from reciept of your initial red letter), in this respect several yrs ago - so it would be a pointless exercise now seeking redress (re unsuitability NOT loss of expectation which you can not be compensated for) as you've clearly know for several yrs that the policy may not be appropriate to your risk profile.

In respect of your comments also seeking redress for PPI sales, the sale of a PPI policy does not automatically make it a mis-sale - ie - the sale may have been compliant and the cover provided may have been suitable to your personal and finanical circs.

If you want to explore if you have been mis-sold, and not time barred, you must contact the selling agent in the first place with your concerns - if they reject your complaint, which you consider to be unfair, you may then submit the matter to the Financial Ombudsman Service (FOS) for their adjudication.

Hope this helps ...

Holly

bigammer

The problem I have is that I cant ever recall insurance being discussed as part of any of the loans I have had.Only when I became more aware of this did I stipulate that I did not require it on later loans. What I can remember is the bank sales person remarking that everything has gone through ok I just need a signature. It is a failing of the majority of us that someone brings around five sheets of small print and you don't read through it you just sign it because you think all is fair and above board. It does make me look stupid but if you are not as confident in these matters as others then I think this can be picked up by the sales people, who know you are not going to query anything

holly_hobby

The insurance can not be added to the loan unless agreed by yourself with the terms and terms of claim having been identified as being suitable to you.

Complain to the firm(s) as I say, and take it from there if they reject your claim.

Here is a link to FOS website re PPI - http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi.html

Hope this helps

H

magpiecottage

bigammer wrote: »

if I was sold a normal repayment mortgage I would have already have paid five years worth of interest and capitol

Five years in to a repayment mortgage you would actually have paid almost as much interest and repaid very little capital.

In addition, your monthly payments to the lender would have been higher - possibly by more than the endowment premium.

You would also have been entitled to a surrender value for the endowment.