Endowment Mis-selling - Don't give up!

scarey_man

Well, after a few months of calls etc, my letter came through from SESAME to say I hadn't lost out.

This what they said regarding the calculation:
<quote>
A. Capital repaid under an equivalent repayment mortgage=£5596
B. Excess costs on endowment method=£2508
C. Current Surrender value=£9337
D. A + B - C = NILL

Total Offer = No Loss

As you can see from the calculation summary above, you have not been disadvantaged by having an interest only mortgage supported by an endowment policy
</quote>

End of the line for me or should I complain to the FSA or The Ombudsman Service?

dunstonh

scarey_man wrote:

Well, after a few months of calls etc, my letter came through from SESAME to say I hadn't lost out.

This what they said regarding the calculation:
<quote>
A. Capital repaid under an equivalent repayment mortgage=£5596
B. Excess costs on endowment method=£2508
C. Current Surrender value=£9337
D. A + B - C = NILL

Total Offer = No Loss

As you can see from the calculation summary above, you have not been disadvantaged by having an interest only mortgage supported by an endowment policy
</quote>

End of the line for me or should I complain to the FSA or The Ombudsman Service?

Complaint upheld so you cant argue with that. The calculation shows that you have made more money on endowment than you would have done on repayment mortgage. Why did you complain out of interest when you had such a good endowment?

scarey_man

I suppose it was in reaction to this thread and other news about mis-selling.
I didn't know if I had lost out or not, the process has shown I didn't.

Thanks for your advice though, I would have been left wondering if I had done nothing.

dunstonh

scarey_man wrote:

I suppose it was in reaction to this thread and other news about mis-selling.
I didn't know if I had lost out or not, the process has shown I didn't.

Thanks for your advice though, I would have been left wondering if I had done nothing.

Its good that you havent lost out but dont sit back now. It could be that it was a good early starter but the fund has gone off the boil and may need switching or you should quit whilst you are ahead. Any 25 year investment should be reviewed periodically and not left to its own devices.

I do admit to feeling a little sorry for the advisor in question. He now has a complaint on record but sold a product that was better for you than the alternative option. It may have been luck or it may have been judgement but I would hope that if someone had concerns over advice that I had given out, that they would contact me first.

vinno65

Hi scare man,
you may not have lost out financially up to now, but that does not necessarily mean your endowment will pay off your mortgage at term. I disagree with you Dunstonh how do you know that this is a better product than the alternative. It might be out performing a repayment at present but that does not mean it was the most suitable product for scarey man. Without knowing why the miss-sale was up held or ascertaining Scarey man's attitude to risk I don't believe you can pass judgement. The very fact that he complained of a miss-sale points to the fact that he is not overly happy with risking his house on an endowment.
regards Vinno

P.S without knowing the facts of the sale how can you "feel sorry for the IFA"
if an endowment was unsuitable for scarey man yet he still went ahead and sold it to him then I have no symapathy at all. In that scenario he wouldn't have followed the rules laid out to protect the consumer

Lottie

I have 2 endowment policies taken out a year apart, in 1987 1n 1988.

Prompted by this thread I complained to both Abbey and Friends Provident that I had been missold a policy.

The 1987 Abbey complaint was unheld but they calculated I had not been financially dissadvantaged. The Friend one was also upheld but they have offered a payment of 6% of the value of the policy.

I am leased by confused. I think I will look through the details in the Friends Provident letter and represent my case to Abbey as the circumstances were hardly any different at the time (excpet maybe that one was before the 1988 deadline for new rules)

Thanks to the site though as I now have some money to buy my horse a new saddle :T :T I would never had made the complaint with out this thread

My best piece of advice for money saving is..... not to get a horse :rotfl:

Lally

Lottie wrote:

Thanks to the site though as I now have some money to buy my horse a new saddle :T :T

Im saying nothing......

Lottie

Lally wrote:

Im saying nothing......

Ah but I am not being irresponsible, I was genuinely missold so have compensation but as I no longer have my endowment policies linked to my mortgage I do not need to reinvest my money

Lally

Lottie wrote:

Ah but I am not being irresponsible, I was genuinely missold so have compensation but as I no longer have my endowment policies linked to my mortgage I do not need to reinvest my money

That's good! I am on repayment now too.

trops

After reading this thread I decided to make a complaint about an endowment I was sold back in 1991. This was sold to me for future mortgages. At the time I didn't have a mortgage, but being young, the rep from the company easily convinced me that this was sound financial planning.

When I bought my home I didn't use this policy, and have let it run as a savings plan. But, the yearly projections were not following that of the initial guide when purchased.

I have received a letter from the company telling me that I have a case of mis-selling, and that they want to return me to the point I would have been if I hadn't purchased this policy.

I have been offered all monies I have paid in, plus interest calculated at 8% as directed by the FSA.

To me this is not compensation whatsoever. Compensation to me means being offered more, as a gesture of good faith.

I am going to write back and politly refuse this first offer, but I was wondering if this has happened to others here, and if so, what was the outcome.

Many thanks