Endowment Mis-selling - Don't give up!

lazydog

I would agree don't give up .I have just received an offer from my building society but how on earth do I decide whether it is fair.It doesn't come anywhere near the shortfall I am facing,but is something better than nothing.Has anyone any experience of whether it is normal to offer a low amount in the hope that people will go away?Has anyone managed to get an increased offer?

FOSman

lazydog wrote:

I would agree don't give up .I have just received an offer from my building society but how on earth do I decide whether it is fair.It doesn't come anywhere near the shortfall I am facing,but is something better than nothing.Has anyone any experience of whether it is normal to offer a low amount in the hope that people will go away?Has anyone managed to get an increased offer?

Ask to get a copy of the calculation. Then call the Financial Ombudsman Service, and ask them to have a look at the calculation. You will have to fill out a few forms, but your complaint should be fast tracked as you already have an offer on the table.

They will tell you if it is correct. Remember, its not designed to make up the shortfall. It is designed to out you back in the position had you taken a repayment mortgage.

mab

Can anyone please advise me as to whether the 'red letter' warning high risk of shortfall, has to be in red? Thank you.

tsk_2

had my claim for for endowment mis-selling rejected because they say i am out of time to claim ,but they are going by letter that was sent to me in jan 2000 just giving information about shortfalls and a fact sheet. only got my first red warning letter in 2003 . had another letter in 2004 and another june this year so i was taking it that i am still in time to claim.i have appealed and waiting to see what the reply will be.does anyone think my appeal will go in my favour .claim is against friends provident

defender_of_the_weak

The time bar (although it does not legally exist) only runs from a letter with the words high risk. FP apply it ruthlessly. Ask to see the letter they are referring to. Also, they should have sent you a letter last year giving details of how long you have to claim. If they did not do this they cannot time bar.

mab

Thank you for the advice. I took out an endowment with Guardian Royal in 1991 for £26.000. They did send me a high risk as part of the annual statement in 2000. When I phoned them, they told me not to worry as my policy was a 'Homebuilder' and there would be more investment, so higher return after ten years. My next warning was in 2003 and my first red warning was in March this year. They have thrown out my complaint as I am time barred. They have replied the same to the Ombudsman and at the moment, I have written back on the grounds as mentioned above. I was never warned about time etc. The Ombudsman did not mention this to me which is strange. I'm not overhopeful now but still trying. Thank you for your help.

defender_of_the_weak

Given the scenario you have detailed there is no way they should time bar. It runs from 3 years after receipt of high risk letter.

Guardian tend to play fast and loose with some of the interpretation of FSA rules. If FOS continue to reject post again

neohurricane

i have just been time barred by the ombudsman because the new rule that states the company has to tell you when the time is up only came into force for complaints received after june 2004. as my 3 year time period started when i got my high risk letter in august 2003 this means i was time barred in august 2003 over 1 year before i made my complaint to the company.

looks like the end of the road- time to look athow the hell to make up a£30K shortfall in the remaining 10 years of the mortgage!

FOSman

I think you mean you got your first red letter in Aug 2000 neohurricane. You should have complained then really shouldn't you.

FOSman

tsk wrote:

had my claim for for endowment mis-selling rejected because they say i am out of time to claim ,but they are going by letter that was sent to me in jan 2000 just giving information about shortfalls and a fact sheet. only got my first red warning letter in 2003 . had another letter in 2004 and another june this year so i was taking it that i am still in time to claim.i have appealed and waiting to see what the reply will be.does anyone think my appeal will go in my favour .claim is against friends provident

Listen, a 'red letter' is a letter that states that there was a high risk of a shortfall, plus shows a shortfall at all three reprojection rates. If it does that, then it is a red letter. The do not have to say "red letter", nor do they need to tell you to complain (although that has changed recently).

If the FOS are time barring you, then it sounds to me like your red letter was in Jan 2000, and the second in 2003. If its just the firm, and you have not taken the case to the FOS, then you'll soon find out if you are time barred.