Endowment Mis-selling - Don't give up!

Kallisti

Just thought I'd add a voice to the "DO IT!" camp - I didn't actually get spurred on by this forum, but I did check it mid-complaint for a few facts and help, so thanks Anyway, sending off my acceptance for a £4.7k settlement today. Now - onto the wife's two endowments!

Side question on the above by the way - if you don't know the figures, but suspect you were on a very good deal, is that likely to give you a better or worse settlement?

Eg, if I was on a 1% mortgage, but couldn't remember the details, so they assumed a 3% mortgage - would the settlement be higher or lower?

mo_haggling

Hi All,

I have just joined MSE and I am so glad that I found this thread. I have been thinking about cashing in my endowment policy of too many years than I care to remember! I also feel I may be entitled to compensation as my situation was very similar to VictoriaSandwich's. I'm off now to the Which site and hopefully if it's not too complicated I'll get a letter sent off today. Thanks again for all info on endowments and compensation.

flossy_splodge

I am trying to help some friends who have started a claim for endowment misselling. Their (insurance) policy is with Norwich Union. They have 7 years to go on a £30000 mortgage over 25 years and the projected shortfall is about £14000 depending on how you work it out. Now my question is: The B Soc has calculated a compensation payment of just over £3k but this seems to me to be based on an unfair calculation. How can they say that the difference between what the surrender value of the policy is now and what amount of capital would have been left if they had been on a repayment mortgage is what is due in compensation? This seems to me to totally ignore the fact that by the end of the mortgage period they will still be short on what is needed to clear the debt not to mention the selling point made at the time of the mortgage being taken out ie that there would be an accumulated lump sum over and beyond that needed to clear the mortgage. said sum was stated to be around £30k. If they accept the miserly aount offered, it appears they will then have to take out a repayment mortgage for about £11k over the next 7 years which with interest will amount to MUCH more than the premiuns they were expecting to pay to complete on the endowment. How can this be deemed to be fair compensation? Have I missed something? Amount offered is stated as in full settlement and without prejudice! What a surprise. Is this worth taking further? Mortgage taken out in June '88. Thanks in anticipation.x

dunstonh

How can they say that the difference between what the surrender value of the policy is now and what amount of capital would have been left if they had been on a repayment mortgage is what is due in compensation?

Its not compensation, its redress. If you switch to repayment now and pay the redress into the mortgage to reduce it along with the surrender surrender value of the endowment, then you are no worse off.

This seems to me to totally ignore the fact that by the end of the mortgage period they will still be short on what is needed to clear the debt not to mention the selling point made at the time of the mortgage being taken out ie that there would be an accumulated lump sum over and beyond that needed to clear the mortgage. said sum was stated to be around £30k.

All that could still happen.

How can this be deemed to be fair compensation?

It is fair if they switch to repayment now.

Is this worth taking further?

No

flossy_splodge

Thanks dunstonh. Can I also ask about 'final bonus'. How will they know if there is any final bonus??x:rolleyes:

prlow

Hi to everyone. I'm looking for some advice. We've had a claim for mis-sold endowment that has gone to the FOS. It's been with them since Jan 2005. We get update letters from FOS saying that due to high number of claims they have been unable to do anything with ours. I assume this would be the case for many out there but can anyone shed some light on how long these claims normally take?

Thanks
Phil

dunstonh

prlow wrote:

Hi to everyone. I'm looking for some advice. We've had a claim for mis-sold endowment that has gone to the FOS. It's been with them since Jan 2005. We get update letters from FOS saying that due to high number of claims they have been unable to do anything with ours. I assume this would be the case for many out there but can anyone shed some light on how long these claims normally take?

Thanks
Phil

A year or two.

At a recent compliance meeting, a complaints handler said that he was more than happy that the FOS took so long as if they ruled in the client's favour, it usually meant less redress was paid out, if any, because of the recovering stockmarkets. An average unit linked endowment would be up around 25% since Jan 2005. So, there is no pressure put on the FOS from the advising companies to get it sorted quickly and the longer they take the better.

prlow

dunstonh wrote:

A year or two.

At a recent compliance meeting, a complaints handler said that he was more than happy that the FOS took so long as if they ruled in the client's favour, it usually meant less redress was paid out, if any, because of the recovering stockmarkets. An average unit linked endowment would be up around 25% since Jan 2005. So, there is no pressure put on the FOS from the advising companies to get it sorted quickly and the longer they take the better.

Seems so unfair to the customer though.

dunstonh

Seems so unfair to the customer though.

Not really. The "customer" with an upheld complaint gets what they are entitled to either through surrender value or redress.

Latest stats on FOS upheld complaints show that out of 650,000 people who take the complaint to them each year, only 110,000 are upheld. So, whenever you go to the FOS, it is worth noting that they have upheld only around 17%. (figures from Tony Boorman, principal ombudsman and decisions director of the FOS)

wilburpig

I used the which letter to Friends Provident and they have dismissed my claim as out of time. Is there anything I can do?