Endowment Mis-selling - Don't give up!

Pod_3

Thanks DD I will wait for an outcome of complaint before next step.

Not sure on all the details of endowments but they have been running for 11+ years with Standard Life, Legal & General and Eagle Star.

yarwood_2

Ok, so far so good.
Have written to the broker telling him we are unhappy with his response. Await some feedback.
So, next question!
How do we decide if the offer made as compensation by R & S Alliance for our original policy is fair and adequate?
It is very well set out in terms of calculation and how they came to the sum but remembering that we are lay people, is there anyone who can advise us without it costing us a fortune-hope so!

TrickyTrotter_2

The Financial Services Authority (FSA) has strict guidelines on how compensation should be calculated.

If you go to the FSA website (https://www.fsa.gov.uk) and type in 'calculating compensation' or 'calculating redress' it brings up the relevant chapter of them FSA Handbook on how to calculate it. Be warned its pages long!

kingbee

Here’s my endowment nightmare, my wife and I took out an endowment in the 80`s and were told that we would have thousands left over to spend on what we wanted when the policy matured. We now have a shortfall of between £12K and £17K and we were shocked, when we complained to Britannia Life, to be told we WERE NOT miss sold the endowment.
We then contacted the Ombudsman who after looking over our case decided we were not miss sold. About 8 months ago we had some work carried out on our garage, and I had to clean up in there, I found some documents, that we thought had been thrown out, which had been forged by the Britannia Building Society, because they wanted to rush the mortgage through, they said. The documents were only MIRAS forms and at the time we thought nothing more of it as we had a new house to contend with, our first.
I have since contacted the Ombudsman again to argue my point that the Building society acts as an agent for the endowment company and in doing so should conduct themselves in a manner fitting for the task they hold and that the forging of customers signatures is quite a naughty task to carry out, and that if they are prepared to carry out such illegal acts what would they do to secure the sale of an endowment for a customer? Lie about the facts?
We have again been told that we have no case? Due to the Tax Forms being nothing to do with the actual endowment and in such a case this would not have been a contributory factor to it being miss sold.
We have now decided that we are flogging a dead horse and are contemplating selling the endowment.

Miffed.

Furniture_man

>:( >:( >:( >:( >:(

It is difficult to keep pusuing something which you think is lost.

I am sure most Insurance companies assume people will give up if their case is rejected.

I have found it difficult to lift myself for another fight with the Ombudsman, but am determined to see this through to the end.

Why should we all lose money when the 'fatcats' controlling these companies still walk away with untold riches in payouts, compensation etc.

It is our money we are fighting for, and all we want back is the money we put in.

Just like the Pension fiasco, the Government of the day just turns a deaf ear and a blind eye while they award themselves salary increases and bigger pensions.

This lot make a 'used car salesman' respectable.

JackRS

Hi, I’m new to this site so forgive my ignorance but have been reading some of the postings with interest (must be the cold weather). Thought I’d just check your opinions on my situation.

The main problem as I see it is proof, how do you prove that the advice we received was poor. I can remember taking out our first mortgage in 1986 for £30K to buy a 2 bed house on the south coast for £34K, oh the summers were long, I wore a younger man clothes and Band Aid single didn’t have a rap in the middle to ruin it!

Anyway the sales rep for the house (new site from Wimpy) set us up for a low start endowment with Sun Alliance and a Bristol & West mortgage. The low start we understood was to minimise the cost during the early years, so I fully understood that it was not the best investment wise but it was suitable for us because our income was stretched. However I remember how it was explain that the joy of endowments was that at the end of the term we would have surplus cash and although they could not guarantee an amount it was likely be more than X. At no time was it mentioned that there was any risk not to achieve the loan amount. He explained the alternative repayment would require higher monthly payments, life insurance, not so flexible for future moves and no cash at the end.

OK so my claim is that we were not advised of any risk to not achieving the capital amount. However my problem is I have no proof, no documents or even any names. So even if I have a case surely without evidence I have no chance……….

In later years we took out another 3 policies with Friend Provident and the most recent with Standard Life (1996) as we moved 4 times increasing the amount each time but keeping the finish date the same. Again with all those I have no proof just my memory that no mention of risk to achieve loan amount.

During 1994 to 1996 we used to get that friendly home visit from our Friends Provident financial advisor who would look into our finances and conclude surprise surprise that we were under insured! Not for the mortgage because the endowment policies were apparently right on track (maybe they were) but the death cover etc. So we took out a 10 year versatile investment plan which will mature next year and pay out about what we paid in if we’re lucky. Anyway that will go to pay off a bit of the shortfall.

We have a projected £20K(using 4% growth, hopefully worse case) shortfall in 2011 so we’ve change the mortgage to part repayment to close the gap.

Actually my attitude is that we can’t have it both ways, if the endowments had performed well we’d be making huge interest payments. The issue here is how they were sold with no explanation that they were at any risk.

I’ve looked through the Which guide and I don’t think I have a case as I have no proof.

Does anybody have a similar experience or offer advice?

DML_3

This is my first time on this site - have tried to find the answer to my question but have failed.

Not sure whether we were missold a policy back in 1989 but all I know is that it is not going to meet is projection figure.

Two years ago through an inheritance have been able to pay off our mortgage.

My question is the projected figure on the endownment policy was £23,000 but currently total bonuses are £11k. This year's declared bonus was £120 yet our yearly payments are £420. There is 10 years left to run. The projected figures at 4% growth is £15,500, 6% £18,300, 8% £21,600.

Should I cash it in? Or stay with it as there is life cover? I do have other life insurance polices (I am 56 and in good health!)

And what would the advice be if I did cash it in where would be the best place to invest?

Furniture_man

I am going through a similar problem, although my projected shortfall was much greater.
I am in the process of cashing the policy in. Tried several of these Companies who advertise 'they want your policy' but all came back and said the market is flat and there is no interest (so why do they still advertise?)

So, I've cashed in with the Scottish Provident whom I took the policy out with.

In your case, the worst scenario is a shortfall @ 4% growth of £7,500. Find out what Life cover will cost over the next 10 years before you cash in. Depending on the level of cover you want, you may find you have to pay more or less than the £7,500 shortfall. You can the make an objective decision.

As I've just cashed in my policy, I have had to replace the Life cover. I am 57 years of age without health problems. Some Companies have turned me down, though I think I am near to completion on this matter but at no small cost.

THINK BEFORE YOU ACT!

dunstonh

Tried several of these Companies who advertise 'they want your policy' but all came back and said the market is flat and there is no interest (so why do they still advertise?)

Its because yours is scottish provident. Their legacy endowments are dire.

Many people are surrendering good endowments thinking they are bad and those are the ones these companies want.

Some Companies have turned me down,

It may be that they only quote on "pure protection" basis and your age at the end exceeds what is allowed. Whereas companies that quote on a "designated investments" basis can go beyond that age. Dont read much into the name basis. It really indicates the type of advisor. They used to be known as non-regulated and regulated.

Furniture_man

Thanks for The note.

I am now preparing a case to go to the FSO