Endowment Mis-selling - Don't give up!

Beegee_3

Sorry about the previous note - some of it got lost somewhere.

It should read:

After reading through the threads on this site we wrote to the company who advised us about taking out an endowment policy, thinking it was an independent financial advisor and a reply plus questionnaire came from L&G. We completed the questionnare as best we could and this morning we recieved a reply advising that they would not uphold our complaint because of the following points. (The points should tell you what the complaint was).

- The illustration given did not give any guarantee about maturity value. It showed three assumed rates 12%, 9% and 6%. The 12% showing a potential surplus and the 9% was the rate needed to produce our target amount.
The illustration also shows a comparison with a repayment mortgate, providing us with details of an alternative payment option.

- We signed a declaration on the Personal Financial Review to acknowlege that we had received and been taken through the Key Features documents.
Our attitude to risk was recorded as medium and the investment risk associated with the Plan is consistent with this.

- Attitude to risk: We were told by the advisor (in our home) that the current growth was 12% and that we would either be able to pay the mortgate off early or get a lump sum at the end of the period. He told us that this would be highly likely and even in the growth rate went down to 9% it would still pay off our mortgate. As neither me or my husband has any pension plans he told us that this would be ideal as we would have some money for our retirement - at no time did he mention the chance of any shortfall!

- Key Features - We signed to say we had been taken through the key features, (apparently the illustration formed part of the Key Features douments) we can't ever remember him going through these. We signed on the dotted line after taking his advice (stupidly).

As for the attitude to risk - like many others we had no idea that we would become investors! We explained to the advisor that we were living on a week to week basis and had no savings but all he kept telling us was 'not to worry' it would be the best for us.

He gave us a couple of alternative quotes for repayment mortgages and there was a difference of only about £30 and if we were told that there was a chance there would be a shortfall we would have gone for a repayment mortgage for peace of mind. Again we were told not to worry as we were doing the right thing.

What I want to know now is: Do I reply to the L&G or should I go to the Ombudsman?

Thanks.

silvercar

I took out a L&G policy in May 1986. I distinctly remember the salesman drawing pictures of aeroplanes (=holidays) and sacks of gold (=money) on one sheet of paper and leaving the second blank. He said which do you want. Choosing the pictures meant choosing an endowment. Of course I don't still have the paper - why would I keep a sheet of pictures?

Two years on, now in my second job on a higher salary, I moved house. No change in circumstances so I arranged an endowment for the increase in mortgage. This time I contacted Standard Life because I had heard they were a better company. Now I chose an endowment because of the advice given the first time round. So, if I have a case in the first instance, is that agent liable for me taking an endowment again? After all I kept taking endowments (yes, there was a third one as well!) all based on the initial drawings of pots of money.

defender_of_the_weak

Beegee

No point going back to L & G they never change their mind (even when they admitted their adviser had committed fraud they still rejected the complaint).

Go to FOS. From what you say you were living week to week and it is highly unlikely that in reality you would be willing to take a risk on this. Also, it is not just ticking a box marked MED it is your overall financial circumstances as well that should be taken in to account. This topic is well covered in Ombudsman News from the Financial Ombudsman Service website issues 41 & 44.

Finally it sounds as though you bought a PEP or ISA based repayment as the projection rates are high. Selling a policy to pay a mortgage needing 9% growth in what was by then a slowing market was IMHO corporate negligence, as L & G themselves knew they would not make these returns.

These are just a few pointers to help your case, all successfully used in FOS referrals and we have not lost an L & G case yet in over two years

tw0906blue

Hi defender - will you give me the link for the FOS please?

We are just starting out - filling in the FP inhouse claim form for mis-sold endowments.

Our second endowment was taken out 17 years ago, a second one when we moved. The first will just about cover the initial sum, but the second is now seriously short - 12k! :eek:

We bought the second on advice from the first really. You know, you are happy with the first one so why change.....blah, blah.

My husband is 50 this year and gets his pension...phew, it's been a rocky ride these last 2 years! as he tried to go it alone. And with such precarious financial circumstances we can't move our mortgage. This shortfall is the last straw!

I know I may be getting ahead of myself, but I am not hopeful at getting a positive outcome from this first complaint! So want to be prepared.

Anyway any help from you guys out there will be gratefully received.

Thanks

MSE_Martin

Referring to an earlier point

Martin did say something about it - basically do it yourself via https://www.endowmentaction.co.uk which is run by the Consumers Association and totally free!

EdInvestor

FOS is www.financial-ombudsman.org.uk

defender_of_the_weak

Do not over elaborate on the form and provide ammunition for FP to reject the complaint on a casual comment. If you are unsure of what they are asking post the question on here

lizzie53_2

After reading some of the experiences and Martins recommendations I finally put in a claim for endowment mis-selling. I used the downloadable letters from the Which site (links via Martins site). We could be up to £8000 short in 6 years time when our mortgate finishes. I didn't expect much especially as the main endowment was from 1987 - before the 'watershed'. However we have now received a payment of £2100 from the Halifax for our Clerical Medical endowment, and £905 from Standard Life for theirs. It was worth filling in all the forms - I answered them the best I could??!! Don't be put off by some of the questions that refer to facts from umpteen yers ago - give the building society a call and they will help you fill it in and tell you which questions you can disregard. We are lucky that our mortgage is 'only' for £23000 - low compared to many. We over pay each month so the sum is slowly coming down, hopefully we won't have too much extra to find in 2012. We have put the money into a "high" interest account until we decide whether to pay it directly into the mortgage. Not sure yet what to do with it. But at least we've got it in the bank while we decide!!

Chaufeurse1956

I have been advised that as my endowment was sold pre Aug 88 (Oct 87) and that it was sold by an agency (now down the pan) that Sun Alliance are not responsible for the £30k shortfall. FSA say pre 1988 means 'sorry luv, can't help'. Can anybody advise me if this is the case? Ombudsman can't help either. The problem appears to be that the agent had many endowments available at his fingertips at the time - naturally his commission would have nothing to do with the one he decided was best for us!!
Is this the end of the road for me? Any advice will be gratefully received.

Thank you,

Chris

dunstonh

Can anybody advise me if this is the case?

It is.

Is this the end of the road for me?

Realistically, it is.