Endowment Mis-selling - Don't give up!

dunstonh

DCLane wrote:

But aren't Sesame the owners of DBS? If my IFA was part of DBS (I've got copies of the DBS Client Agreement) then shouldn't it be them?

I can't contact the IFA since he's retired and has Alzheimer's.

David

I will keep response on your own thread. This one is way to messy to follow at times.

VickyM_2

Hi

Apologies if this question has been asked already...I'll try and keep it brief.

I took out a mortgage for £47,500 with the Halifax in 1994, supported by an endowment with Standard Life (being assured that it would pay the mortgage and give me a lump sell as well, naturally!). I sold the flat and repaid the mortgage in 1997 but kept the endowment going as I knew I'd want another mortgage later, and it seemed like a good financial decision (!). In 1998, I bought a house with my partner, with a mortgage of £40,000, supported by my endowment and one that he had, of £17,000 (not sure who its with). So we naturally assumed we'd be covered, and have a bit left over.

My Red Alert letter from SL, sent last July, told me that the most my plan might be worth is £35,900, the lowest is £24,800 and the intermediate is £29,800 - so the chances are that it won't pay off the mortgage. My partner's endowment is also underperforming.

My question is: as the endowment doesn't relate to the original mortgage, can I still pursue a mis-selling complaint? Or will this be automatically disallowed because the new mortgage is lower than the original one? (And we're also trying to reduce the mortgage, and have paid off £2000 last year - does that mean that we've taken action and therefore no longer qualify for compensation?)

I'm sorry if these are stupid questions - but if I was a financial whizz-kid then I wouldn't have an endowment in the first place (or taken out a pension with Equitable Life, but that's another story...)

Thanks for any advice.

Vicky

defender_of_the_weak

Yes you can still pursue a claim, any overpayments or reductions will be taken in to account if your complaint is upheld

defender_of_the_weak

DC Lane

Sesame are responsible for DBS sales, take it to the Ombudsman

shopaholicjules

Hi
No I did not have any other investments to suggest I had knowledge, I was only very young at the time. I do not remember the salesman explaining about not receving any bonuses but cannot be 100% sure but would say at the point I bought it I was young and would have been scared to go for something that might not of paid the mortgage, at that age you don't take the risk.
What do you mean by how balanced am I? Don't mean to sound Stupid
What do I do with the Ombudsman, do I send them what I have been sent by L&G
Thanks for your help and advice

DCLane

defender_of_the_weak wrote:

DC Lane

Sesame are responsible for DBS sales, take it to the Ombudsman

Thanks - I called the Ombudsman this afternoon.

Hopefully I'll get somewhere but you never know.

David

moonshine386

Please, please, can anyone help!!??

My Norwich Union Endowment policy update on 1/10/03 projected shortfalls up to £5400 below the actual target amount of £16200 without bonuses, due to mature 2010. I made a formal complaint to the seller, Principality Building Society, that I was badly advised about the product and seek compensation for the shortfall. The Principality responded that they had no responsibility as they sold the endowment to me before the Miss-selling Act of 1988! I had not approached the Principality about the product, but they were coercing me by mail shots. Due to the FSA being inundated with miss-selling complaints after the Act, it must have been even rifer before the Act.

I took up the case with the FSA, providing them with a letter from a Principality manger who states the product was in my best interest. A visit to my home by their representative never mentioned any risks or that the money is invested in the stock market.. I also provided the FSA with a copy of the projection illustration that with bonuses, gives a total of £27,000. The Norwich Union Endowment brochure, which I still have, is full of glowing positive statements, the most reassuring mission statement being, that the product is designed to pay off the mortgage.

This is another, among many positive Norwich Union Endowment brochure statements:
“To this sum insured, Annual Bonuses are added. These Bonuses increase the value of your policy, and should not only pay off your mortgage at the end but produce a tax-free surplus as well”.

After a long period, the Ombudsman decision was on the side of the seller. I appealed to the Ombudsman about their decision, they said it was final.

Please, does anyone know if there has been a case where the Ombudsman’s final decision has been successfully challenged or, the seller paying compensation without taking legal action? I am retired now and in recent years had a very costly divorce settlement. I am afraid to risk a legal battle.

Best regards, Geoff

dunstonh

Please, does anyone know if there has been a case where the Ombudsman’s final decision has been successfully challenged or, the seller paying compensation without taking legal action? I am retired now and in recent years had a very costly divorce settlement. I am afraid to risk a legal battle.

You can ask for an ombudsman to review the decision. Most cases to not result in a change of mind. Legal action will do you no good and will just cost you money.

moonshine386

Many thanks dunstonh for your swift reply. I appealed to the Ombudsman final decision, but, got turned down. Who finances the Ombudsman and the FSA?
Best regards. Moonshine386

dunstonh

Who finances the Ombudsman and the FSA?

They are basically Govt departments but financed by the financial services industry by the way of levies and fines. As I have mentioned before on here, in many cases today, it is the decent firms still around that are paying the complaints and compensation of those who have left or have been forced out.

With complaints, there is general consensus that the complaints process favours the consumer. I know you may not feel that at this time but when you look at the information that does get issued but ignored by the ombudsman, the same documents would be classed as evidence in a court of law.

Your NU policy may not turn out as bad as you think. NU and Pru do have the strongest with profits plans. You are running tight on the timescale but NU are starting to add terminal bonuses back in again. A few more years like the last few then you could see an improvement. I do fear though that the short time left will make it hard to get back on track totally though. You could investigate if there are any other investment funds available which offer greater potential for growth. With an old plan though, this is more of a long shot.