Endowment Mis-selling - Don't give up!

JohnG

Having read quite a number of the replies on this thread it just shows the number of people who were well and truly duped/cheated into signing up to endowments by the various endowment providers - it's clear there was never any advice or warning given until the situation became clearer. I am sure that many of the people who sold the polices were as ignorant of what might happen as the people who took them on but that shouldnt excuse the fact that they were taken on in good faith when there was no apparent risk. As I said to the ombudsman in my failed attempt to get compensation, we were completely unaware we might not have enough to pay off the mortgage , if we knew there was a chance it might not then there was no question that we wouldn't have taken an endowment out! We wouldnt gamble with something like a mortgage especially when just starting out in life.

It's an absolute disgrace that these companies can get away with this - If we all got together as one I'm sure we could get something done about it instead of having to spend hours and much hard work trying resolve these major shortfall issues through misselling claims which were none of our doing in the first place! They should be made to pay the full amount to cover the minimum amount that was expected at the start of taking out the policy!

carbonman

I have a current endowment policy with norwich union, who have stated i will have ashortfall of £16,000 on a £42,000 motgage .
could you advice me on a reputable companies to deal with a claim

motis

motis wrote:

Thank you very much again on all counts - taken on board and understood, though brain hurting re the as-at date thingy. I'll let you know what transpires and hopefully you won't mind another question later if necessary.

Best regards
Mo

Again, thanks for your help, as promised here is what transpired, re-stating some details for clarity:

The form accepting an amount in full and final settlement was returned by my relative, albeit about a month after their (Abbey) requested timescale. A cheque has been received in that amount, i.e. as at the date they accepted that a claim was justified (per FSA rules).

You will recall that I queried whether such amount could be varied, upwards or downwards per subsequent market evaluation of endowment surrender value. I.e. in case recalculation was permissible as of a later date due to delay in accepting the offered compensation.

That is all, and thanks again for your help

Mo

FOSman

motis wrote:

Again, thanks for your help, as promised here is what transpired, re-stating some details for clarity:

The form accepting an amount in full and final settlement was returned by my relative, albeit about a month after their (Abbey) requested timescale. A cheque has been received in that amount, i.e. as at the date they accepted that a claim was justified (per FSA rules).

You will recall that I queried whether such amount could be varied, upwards or downwards per subsequent market evaluation of endowment surrender value. I.e. in case recalculation was permissible as of a later date due to delay in accepting the offered compensation.

That is all, and thanks again for your help

Mo

I had a case like this the other day. A complainant sat on an offer for 6 weeks. Meanwhile, the SV fell (so he lost out). I told the large bank that they were under no obligation to re-calculate redress, as any further losses are down to the complainants. However, this large bank decided to re-calculate as a gesture of goodwill.

FOSman

carbonman wrote:

I have a current endowment policy with norwich union, who have stated i will have ashortfall of £16,000 on a £42,000 motgage .
could you advice me on a reputable companies to deal with a claim

Complain yourself if you feel you were really mis-sold. Remember, just because you might face a shortfall, it doesn't mean that your policy was mis-sold.

ElTel_3

Tricky Trotter's in Sep 04 origional post finished by asking for advice about whether to accept a compensation offer based on actual rates or the standard (assumed) rates of the company. I've trawled through a lot of posts but can't find anyone who has offered an opinion. Can anyone help?

dunstonh

ElTel wrote:

Tricky Trotter's in Sep 04 origional post finished by asking for advice about whether to accept a compensation offer based on actual rates or the standard (assumed) rates of the company. I've trawled through a lot of posts but can't find anyone who has offered an opinion. Can anyone help?

Endowment mortgages were generally cheaper than repayment mortgages during periods of higher interest rates. So, whether you were on higher rates or cheaper rates would depend on what is best for you.

ElTel_3

Many thanks for the speed of your reply, Dunstonh. Could you give me an idea of what I would have to do to calculate what's best for me? Will I have to find out the rate when I started the policy? I feel a migraine coming on!!!!!!

dunstonh

If you want to use real rates, you will be required to supply each and every rate you were on since the start of the endowment, and the dates with each one. If you have been with the same provider, you could ask them to give them to you. It may be a long wait though.

Usually the differences are not that much. You need to weigh up whether the time spent obtaining those figures is worth it or not. Sometimes it is just cheaper to accept the variable rate calculation on the assumption that you are probably looking at a 5% -/+ swing with the two options.

khaki304

Hopefully I have found the correct place for my endowment compensation question...

Can someone tell me if I have paid off my mortgage, will I be able to get any compensation?