Am I too late to complain about our Endowment?

procrastination_over

I have just ignored our endowment really, I know that is really stupid but I didn't really realise that we could do anything about it. I have just pulled as much paper work out as I can find and it is with the Friends Provident. We took it out in Sept 1992 and its in two parts (can't remember why, maybe to cover the extra bit of mortgage we got for home inprovements) 1 is for £26510 and the other £3000 it costs us £40.32 in total per mth. We have been getting letters as far back as 2002 regarding there may be a risk etc etc. We have a 'Red Alert - High Risk of Shortfall' letter here that is dated 14 October 2004.
Is it too late for us to try and complain as I know Martin says 6 years from date of policy or 3 years from date you realised it may have been mis-sold. So could I go off the date of the Red Alert or would they take the one from 2002 that says at the bottom that there is a high risk it might not reach the target?
Does anybody know if its worth me complaining or just forget about it now as I buried the paper work and my head for too long?

Also we can't remember the name of the broker who sold it to us? Its with Friends Provident so if we send a complaints letter should we send it to Friends Prov?

dunstonh

Friends Provident have virtually time barred everyone now. Three years from being notified of a high risk of not hitting target is well over for you so it appears that if you were to complain, you would be time barred.

mae

Thanks dunstonh so I take it you don't even think its worth them sending a letter?

dunstonh

You can send a letter in. They can only say no.

As to whether you keep it, that answer is a maybe. They have some good ones and bad ones. The unit linked funds havent been too bad and many of those are on track for surplus (even though projections say otherwise). The with profits fund is weak and has little future potential so that isnt as good.

However, without any figures, we cannot really say.

EdInvestor

procrastination_over wrote: »

We have a 'Red Alert - High Risk of Shortfall' letter here that is dated 14 October 2004.

If that was the first "red alert" letter you received, then it would appear you are still within the three year limit and shouldn't be time barred until October.

I would send in the complaint, good luck

Regarding what to do with it, post some info about it:

Guaranteed sum assured
Declared bonuses
Surrender value ( ring up and ask)
Maturity date
Maturity forecasts
Interest rate payable on mortgage.

dunstonh

Friends Prov issued most of their first useable high risk of shortfall between 2000 and 2003. Whilst there may be some that fell outside of that period, the OP mentioned 2002 as the first one.

EdInvestor

We have been getting letters as far back as 2002 regarding there may be a risk etc etc. We have a 'Red Alert - High Risk of Shortfall' letter here that is dated 14 October 2004.

The rules say that the time bar starts ticking only when you get the letter that contains the wording "high risk of shortfall". Earlier letters alluding to possible problems don't count.

So the OP looks to be still OK.


Many companies are trying to take advantage by breaking the rules - don't be fooled

vinno65

EdInvestor wrote: »

The rules say that the time bar starts ticking only when you get the letter that contains the wording "high risk of shortfall". Earlier letters alluding to possible problems don't count.

So the OP looks to be still OK.

Not strictly true with FP i'm afraid. They will still probably try to bar on the basis of the 2002 letter. I'm pretty sure that if Mae reads the 2004 letter there will be a box near the back containing a date by which you have to complain by. This will probably be sometime in 2005 based on the 2002 letter.
Could be wrong but it's worth Mae checking.

Regards Vinno

EdInvestor

The ruling relating to 3 years from the red alert "high risk of shortfall" letter comes from the FSA - the regulator which oversees all life companies.

Why would FP not be bound by this rule?

vinno65

Hi Edinvestor,
unfortunately this rule which came in in 2004 is not retrospective, so those time barred before the rule change remained time barred. FP probably sent Mae a "high risk" letter before the rule change. It wouldn't have been red or contained the words "red alert" as their later letters did, but unfortunately for Mae (assuming they did send her a letter pre 2004) it was good enough for the FSA to start the clock ticking(though not necessarily a court of law).

regards Vinno

EdInvestor

...or would they take the one from 2002 that says at the bottom that there is a high risk it might not reach the target?

Looks like they will be able to timebar from 2002 then, as the correct terminology has been used.