Compensation Question

dinglebert

I complained and won my claim to the FSA about a policy missold by my IFA. When I complained direct they ignored me. They now have 4 weeks to reply with their offer of compensation. My question is how this is calculated given that I expect my IFA to attempt to minimise their liability. I understand the basics in that they look at the difference my paying an endowment has made compared to a repayment at the date it was agreed there was a misselling, which was 3 weeks ago. Therefore the claim is based on what I would have left to pay if I had taken a repayment out, I have seen websites which calulate this minus what the endowment is currently worth. This is the shortfall. They then take from that the £600 I got from Scottish Life when they demutulised. They also take the difference in monthly payments given I was payment less because it was an endowment compared to a repayment mortgage.

OK I think I've got it so far. What I am confused about is the position with reduced mortgage deals I have made over the years eg fixed and reduced rates. My wife won her case against Standard Life and these were taken into account when her compensation was decided. I struggle to understand why given that if she had been paying a repayment mortgage then those deals would have still be available. If anyone able to clear this up? (if they understand what I have written that is)

If I disagree with the amount offered from my IFA, what are my options?

Froggitt

The compensation is the difference between what you would have paid had you been on a repayment basis, and what you paid under the endowment mortgage, taking the surrender value of the policy into account.

The cant take your demutualisation benefits into account

http://www.adamsamuel.co.uk/pdf/demutualisation.pdf

the common law principles for the assessment of damages do not require the value of the benefit of the demutualisation shares issued to Mr Taber to be brought into account in diminution of the compensation to be awarded to him

When I won my compo claim against Halifax, they offered me the choice of using actual interest rates charged, or whatever the variable rate was over the period.

I also dont think they subtracted the difference in monthly payments.

I would think you can go back to the FSA if you disagree with their calculations.

dunstonh

Not the FSA. It would be the FSCS or FOS.

Froggitt

Yes youre right Dunstonh......too many Fs.

While Ive got you Dunstonh, what do you think about this........a friend of mine was "mis-sold" an endowment by their accountant.....who say they were regulated to sell endowments by the ICA or something.....not the FSA. Therefore the FOS say they cant do anything and there doesnt seem to be an equivalent to the FOS in the ICA world. Ever heard of this? I thought anyone who wanted to sell endowments had to be regulated by the FSA.

Frog