Endowment Mis-selling - Don't give up!

myk_2

dreamylittledream wrote:

When you paid the mortgage off and took a new one did you stop using the policy (ie put the mortgage on repayment)?

Compensation is worked out generally by comparing the endowment mortgage you took with a repayment mortgage that you would have taken had you been correctly advised.

This comparison looks at whether your endowment mortgage cost more or less then a repayment mortgage and also how much capital you would have paid off had you had a repayment mortgage. These two figures are added together (although the first is usually disregarded is the endowment mortgage was cheaper) and the current surrender value of your policy is deducted. The difference therefore is your compensation.

If you stopped using the policy in 2003 then the above comparison will cease in 2003. The amount of capital you would have repaid at that point, plus any additional amount the endowment may have cost over a repayment mortgage, is then added to a refund of the premiums paid to your endowment since 2003. This is then all deducted from what your policy is worth now...

Hope that has made it a bit clearer!

I got a cheque for £2100 from the Halifax yesterday.... :j

I am so glad I finally complained (I had several letters warning me of the shortfall, but always thought "whats the point I'll never get anything").

If it hadnt been for this site and the Which? automatic complaint letter generator, I would have just accepted that I had lost out because of the 'crash'.

I am overjoyed with this result, its like winning the lottery

I will now be getting some new windows with this cash, and getting complaints in for my partners endowment.

Thank you so much MSE, I love you !!!

basswatson

I used the Which site as suggested to pursue a mis-selling complaint against Sun Life of Canada last October. They intially turned me down in December but I wrote again saying that I did not agree with their reasons and asked them to reconsider on that basis. I also indicated I would take it to the ombudsman if they did not. Last week I received a cheque for £6684.61. So keep at it!

vulcanbomber

Took an Endowment out with Norwich Union back in 1990 throught the Leeds Permananent Building Society, who at that time were tied to NU.

After looking at and not really taking much notice of the shortfall letters decided to use the Endownment Action letter generator to complain to The Halifax who had since taken over the Leeds.

The Halifax referred me to NU and to my amazement NU sent me an offer of £4883.71 as they agreed that I had been mis sold my original poicy.

I in future will take much more notice of topics on MSE, Thank you!!!!!!! :

:T :beer:

Steve38

Firstly, excellent site.

Secondly, as a relative new comer to this site, please could someone please advise: My endowment policy started in June 88, can i still complain about a mis-sold policy? according to the FSCS website, the cut of date is Aug 88?

I guess i am 2 months the worse?


Steve.y

dreamylittledream

Do you know who sold the policy to you?

The FSCS only get involved if the original selling agent has gone out of buisness.

dreamylittledream

myk wrote:

I got a cheque for £2100 from the Halifax yesterday.... :j

I am so glad I finally complained (I had several letters warning me of the shortfall, but always thought "whats the point I'll never get anything").

If it hadnt been for this site and the Which? automatic complaint letter generator, I would have just accepted that I had lost out because of the 'crash'.

I am overjoyed with this result, its like winning the lottery

I will now be getting some new windows with this cash, and getting complaints in for my partners endowment.

Thank you so much MSE, I love you !!!

Excellent - congratulations!

BikingBud

Started at the beginning and skipped a few in the middle but here goes on my take of things. Can someone please confirm whether I have assessed this correctly?

Std Life 25 yr WP Endowment taken out in May 88 to cover Leeds Permanent Building Society Mortgage of £31.5k, guaranteed min death benefit £32.2k or £10.4k + bonuses whichever is the greater. LPBS acted as the agents of Std Life.

I cannot find the original illustration that persuaded us to take out the endowment policy but we do remember the promise of nest eggs and extra funds.

I do have the "Acceptance Notice Home Loan" provided by Std Life, this is dated Mar 88, the difference in dates is due to the delay of contract exchange.

House sold in 96 and policy reassigned to us in Oct 96. No further house purchased as we live in military accommodation and move frequently. Continued contributing as a savings plan, looked forward to the nest egg, expecting over £35k.

Recently been aware of shortfalls and wrote to Std Life in Nov 04, requesting copies of the illustration of returns that supported the offer of the endowment policy.

Std Life responded in Dec 04 indicating that as they did not advise on the sale then they do not hold this information and suggested that we try the adviser, the Leeds now taken over by the Halifax.

I did not take the matter any further at that stage; however, we have just recently been sent the latest yearly statement with a RED ALERT and High Risk of Shortfall message. The bonus for the past year was a paltry £62.66!!

Nevertheless, as we sold the house in 96 and during the period up until 96 the endowments were performing better then the possible shortfall between what we paid for the endowment +interest and the amount we would have paid on a repayment is likely to be small.

My understadning therefore is that despite the fact that I feel the endowment was mis-sold the scope for compensation is slim and as we no longer require the policy to cover a house loan we must just accept the poor returns of the policy. Ergo it may not be worth pursuing a claim.

If anyone has any comments about this then I would be glad to hear them.

Thanks

BB

W_s_n

dreamylittledream wrote:

It depends on many things:

Who is the policy with?

Who sold it?

When did you first recieve a letter warning you it was not on track?

If the policy was sold in 1998 then in theory the sale should be well documented and easily defendable by the elling agent as fact finds etc had improved vastly by that time. However this of course is not always the case.

And plenty of companies have lost even recent records...

All you can do for now is wait and see...

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Hi dreamylittledream....... thanks for your reply.

I first got a warning letter last year. the company who sold it are Ward & Partners and the endowment is with Winterthur.

dreamylittledream

BikingBud wrote:

Started at the beginning and skipped a few in the middle but here goes on my take of things. Can someone please confirm whether I have assessed this correctly?

Std Life 25 yr WP Endowment taken out in May 88 to cover Leeds Permanent Building Society Mortgage of £31.5k, guaranteed min death benefit £32.2k or £10.4k + bonuses whichever is the greater. LPBS acted as the agents of Std Life.

I cannot find the original illustration that persuaded us to take out the endowment policy but we do remember the promise of nest eggs and extra funds.

I do have the "Acceptance Notice Home Loan" provided by Std Life, this is dated Mar 88, the difference in dates is due to the delay of contract exchange.

House sold in 96 and policy reassigned to us in Oct 96. No further house purchased as we live in military accommodation and move frequently. Continued contributing as a savings plan, looked forward to the nest egg, expecting over £35k.

Recently been aware of shortfalls and wrote to Std Life in Nov 04, requesting copies of the illustration of returns that supported the offer of the endowment policy.

Std Life responded in Dec 04 indicating that as they did not advise on the sale then they do not hold this information and suggested that we try the adviser, the Leeds now taken over by the Halifax.

I did not take the matter any further at that stage; however, we have just recently been sent the latest yearly statement with a RED ALERT and High Risk of Shortfall message. The bonus for the past year was a paltry £62.66!!

Nevertheless, as we sold the house in 96 and during the period up until 96 the endowments were performing better then the possible shortfall between what we paid for the endowment +interest and the amount we would have paid on a repayment is likely to be small.

My understadning therefore is that despite the fact that I feel the endowment was mis-sold the scope for compensation is slim and as we no longer require the policy to cover a house loan we must just accept the poor returns of the policy. Ergo it may not be worth pursuing a claim.

If anyone has any comments about this then I would be glad to hear them.

Thanks

BB

Complain to the Halifax as they took over Leeds Perm

In your case redress would be a comparison of the reduction of capital between and endowment and repayment mortgage until 1996 with interest to date and a refund of the premiums paid to your endowment subsequently with interest. These two figures will be deducted from the current surrender value of your policy.

So in answer to your question any loss you have made will depend on how the policy has done in comparison to normal savings...

At any rate if you feel the policy was mis-sold there is little point in not complaining. Aside from a small amount of form filling it hardly classes as a difficult exersise and if you have lost out financially from having the endowment there will be compensation owed.

dreamylittledream

W_s_n wrote:

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Hi dreamylittledream....... thanks for your reply.

I first got a warning letter last year. the company who sold it are Ward & Partners and the endowment is with Winterthur.

Your comaplaint is within time if your first shortfall letter was last year.

If you are rejected by the selling agent take the case to the FOS...