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Endowment Mis-selling - Don't give up!
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Following articles on this site I complained about 3 endowments. The Standard Life one has been settled, the Halifax have agreed that they sold me one of my 2 policies with Scottish Amicable and are currently calculating a settlement. The third which I took out while sat in a local Building Society which had a Halifax Building Society agency and someone from there organised my appointment with 'someone' who completed all the forms for the mortgage and the endowment. The Halifax say that the Prudential (who took over scottish amicable) have confirmed that the Halifax did not sell the policy to me and that they are unable to confirm who did sell the policy.
This policy was for my first ever mortgage and at 19 I was very naive and really just did as I was told and applied because of the massive incentive of having money left over after repaying my mortgage.
The original mortgage and endowment would have been taken out in May or June 1986, which on the phone the Halifax suggested was before there were any rules in place (???)
I wonder if anyone would be kind enough to share with me if they have had anything similar or even just advice me what my next step is as I am determined not to let them get away with it as really this was the one policy which was definitely sold to me by giving an example of the sellers experiences gainful examples of how much extra cash I would have left over after repaying my mortgage.
Many thanks for any assistance.0 -
The original mortgage and endowment would have been taken out in May or June 1986, which on the phone the Halifax suggested was before there were any rules in place (???)
Correct. Regulation came in force during 1988. A 1986 policy taken though an "agent" office would almost certainly have been a independent or accountant rather than an employee of Scot Am or Halifax. In which case, they do not have to deal with your complaint.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
So do you think I should just 'give up'??0
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wilburpig wrote:I used the which letter to Friends Provident and they have dismissed my claim as out of time. Is there anything I can do?
Hi Wilburpig, have they even investigated the complaint?
Let us know and we will try to help,
Also on what basis are you deemed out of time?
regrads Vinno0 -
I am in a similar situation. The Estate Agents who handled the purchase of my first home introduced me to the Norwich Union rep and I subsequesntly took out an Endowment mortgage based on 'tales' of being able to pay off my mortgage and have a world cruise of by myself a brand new car.
I have since complained to Norwich Union who say that the estate agents sold me the policy and that they were paid commission. Of coure the estate agents have long since gone out of business although one of their employees is still working locally as an estage agent.
My policy was taken out in 1984. I have been through the FSO and had my claim rejected. I went to one of those sharks that claim to get us compensation and eight months after I told them I had already been to the FSO, they threw out my case for precisely that reason.
Now I understand that my policy was purchased before 1988 but other people who took out endowment policies prior to 1988 have been compnensated. NU admit to paying commission to the estate agents so as I see it, either it was a sales commission, in which case the estate agents were agents for NU and therefore NU are legally responsible for their actions. Or the commission was paid as a 'finders' fee for introducing me to NU in which case NU are the sellers. Either way, I can't see how they can deny responsibility for the sale of the policy.
I supplied the FSO with the name of the NU rep that I dealt with, supplied copies of letters from the local NU office, and sent them a signed letter from the estate agent employee who said that the estate agents did not sell any endowment polices. And still the FSO find in favour of NU!
The title of this thread is 'Don't give up' but where on earth do I go next given that I am unwaged and can't afford legal help. The CAB can't help me any further.0 -
NU admit to paying commission to the estate agents so as I see it, either it was a sales commission, in which case the estate agents were agents for NU and therefore NU are legally responsible for their actions. Or the commission was paid as a 'finders' fee for introducing me to NU in which case NU are the sellers. Either way, I can't see how they can deny responsibility for the sale of the policy.
Remember you are not complaining about the policy. You are complaining about the advice given and NU didnt give you any advice.I supplied the FSO with the name of the NU rep that I dealt with, supplied copies of letters from the local NU office, and sent them a signed letter from the estate agent employee who said that the estate agents did not sell any endowment polices. And still the FSO find in favour of NU!The title of this thread is 'Don't give up' but where on earth do I go next given that I am unwaged and can't afford legal help. The CAB can't help me any further.
The good news is that a 1984 policy should have LAPR (tax relief) on the contributions and you have saved a lot of money over the years and if its a 25 year plan, you shouldnt be that far off hitting target. Indeed, being NU, a surplus is still possible. Even if you could complain and that complaint was upheld, you almost certainly have suffered no loss and there would be no redress payable.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
NU have nothing to do with the sale of this policy and have no liability for the advice that was given.
OK thanks for the news that it may not be as bad as I feared but could you please explain the above statement?
1 Norwich Union's rep talked me into buying this policy instead of a repayment mortgage.
2 Abbey National have told me (and I quote) "the evidence suggests that the sale of your policy was arranged by Norwich Union, and that they are responsible for any advice that may have been given to you."
I'm not arguing with you, just trying to understand it all.0 -
1 Norwich Union's rep talked me into buying this policy instead of a repayment mortgage.
NU said it was the estate agents that sold the policy. Not one of their reps. This would indicate the estate agent was independent. Providers pay commission to independent on the products sold unless you pay fees. The liaiblity lies with the advising company and in this case, the advising company was the estate agent.2 Abbey National have told me (and I quote) "the evidence suggests that the sale of your policy was arranged by Norwich Union, and that they are responsible for any advice that may have been given to you."
I'm not sure what Abbey National have to do with it and how they are able to ascertain how and whom advised on a product that they have nothing to do with.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi everyone - this is a very interesting thread as I have just started a complaint against our endowment policy that was bought in the early '90's.
I've sent the complaint letter (recorded) generated by Which and the 14 day deadline was up yesterday. They have not even acknowledged receipt of the letter. On reading the Which website it says you can only go to the Ombudsman after eight weeks.
Can anyone help with what I should do next?
I'm sorry if this has already been addressed on this thread, but there are 35 pages on it and I'm going blind!!£2 Saver Club (started 24th March '06) going towards No. 2 Son Cub trip!!
20p Saver Club (started 11th April '06) Grand Total = £135.00 Paid to Akela0 -
NU said it was the estate agents that sold the policy.
Ah I see now. If NU say something, it is correct! I thought it was just that they didn't want to pay up!I'm not sure what Abbey National have to do with it and how they are able to ascertain how and whom advised on a product that they have nothing to do with.
My mortgage is the Abbey. When I originally complained to NU they told me that Abbey were the agents who sold me the policy. Obviously I then had to contact them about the matter. Apparently, they were agents for NU at a later date but not at the time I took out the policy.
They saw all the documentation pertaining to the sale of the policy. Presumably, like me, they also thought that if you had a letter on NU headed paper advising you to take out the policy, that it was NU who were selling it! :rolleyes:0
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