Endowment Mis-selling - Don't give up!

dunstonh

If we want to claim do we try & contact the Broker or FP?

If the adviser was a employee or tied to FP, then you complain to FP. If the adviser was a solicitor, accountant or IFA, then you complain direct to them. You can ask FP for the name and address of the selling adviser.

We have also taken out an additional repayment mortgage on top of the endowment. Does this make it look like we arent concerned about the shortfall?

It will have no impact. Additional borrowing wouldnt be taken into account as it has nothing to do with the original transaction.

savedoshplease

i have an endowment policy that was taken out purely for saving and not linked to a mortgage. its not performing anything like expected when i took it out in 1991. can anyone advise me if it would possible to claim compensation for miss-selling?

dunstonh

savedoshplease wrote:

i have an endowment policy that was taken out purely for saving and not linked to a mortgage. its not performing anything like expected when i took it out in 1991. can anyone advise me if it would possible to claim compensation for miss-selling?

No. You cannot complain about poor investment returns.

savings endowments are also different to mortgage endowments in the way they are set up and work. The life cover element is much lower and sometimes as low as just 1% of the fund value. Back in 1991 you wouldnt have had regular contribution PEPs and ISAs didnt exist then either. Savings endowments like this were the usual plan to have.

David_Bennett

Hi

I was sold a Friends Provident endowment in Oct 1991, just before the FSA became applicable. I have been told that any claim I make has to go via the Law Society who were the regulatory body at the time (I purchased it through an agent who was attached to a solicitors office). My initial letter/s to the solicitor and agent regarding compensation have been refused even though I was clearly told that the endowment was the best option, also that it was an early maturity policy.

Any ideas regarding how to proceed, if at all?

Thanks

Dave

Yorkshire_Bloke

I took out a Friends Provident endowment morgage about 20 years ago with the promise that it would pay off my morgage and provide a sizeable lump sum besides. When the endowment matured in 2003 it did indeed pay off the mortgage but the lump sum was somewhat smaller than promised. Can I still claim misselling. Can anyone advise me?

Thanks,

Brian

dreamylittledream

dunstonh wrote:

No. You cannot complain about poor investment returns.

savings endowments are also different to mortgage endowments in the way they are set up and work. The life cover element is much lower and sometimes as low as just 1% of the fund value. Back in 1991 you wouldnt have had regular contribution PEPs and ISAs didnt exist then either. Savings endowments like this were the usual plan to have.

Full endowment yes

Low cost endowment no - unless a need can be shown for the additional life cover.

There are arguments to be made for the mis-sale of savings endowments as well as mortgage linked - aside from the life cover issue attitude to risk springs to mind.

rossbenn

TrickyTrotter wrote:

My experience shows that persistance pays, don't be fobbed off.

In 1986, we were sold an endowment policy with UK's largest mutual by (then) UK's largest BS, now a plc. The Branch Manager (you had to get down on your knees for a mortage then), told us about how his brother had just cashed in big time with one, never suggested anything else, despite the fact it was my first mortgage.

In June 03 finally decided to complain and followed the Which Endowment Action guidance. In Nov 03, the aforementioned bank rejected our complaint, despite the fact they had destroyed all our records - we moved the mortage in 1994. They said the manager must have followed the correct procedures, and I had no proof he didn't.

I wrote to the FSA in April 04 and again in June after reading some of the advice on here about demonstarting our approach to RISK rather than HOW much money we stood to lose. FSA just kept saying they were to busy to allocate our claim to a case worker

Out of the blue last Friday got a letter from FSA saying that the bank has agreed with FSA that our claim was valid and will write with an offer within a fortnight.

After reading other posts on here I expect they will ask me how I want it calculating; at actual rates or based on their standard rate. I haven't got a clue about which will be most beneficial - despite the good advice on here.

But keep going despite any apparent set back.

I have to ask this, have you made a compensation claim against the government? It was they after all who broke their word and took the 17.50%
tax relief from endowments. And didnt they also take away the 15% tax relief on the interest we paid on our mortgages.
When I took out my mortgage in 1974 the interest rate was about 11%.

Over the years that has fallen to circa 4.5%. The money I saved on this went in to my endowment. Funny thing is I will have that surplus in three years that the insurance man promised me.
I dont hear any of the widows or widowers making complaints about their mortgages being paid off and leaving them mortgage free when their loved ones died. But then that would be good news and we dont want that, do we.
It really is strange for Which to shout about endowments when in the seventies they said it was a "best buy" the only way to have a mortgage, are you going to sue them.
Its a funny old life.

jacquit_3

hi,

I've been unsure whether to make a claim or not but now I've read all this I've decided to go for it..... nothing to lose right?

I need a bit of advice first though, my endowment was sold by an IFA in 1996 and is a managed fund with Standard Life (ie no windfall now it's de-mutualised but that's another story!). I'm 99% sure my adviser mentioned that the plan may not meet the target because he said he had to tell us that BUT.... he said that will never happen!
Do you think i will lose my claim because he did mention, albeit briefly, that there may be a shortfall?

thanx
Jacqui T

ChrisS

I thought my chances were slim to none. My complaint to Norwich Union was upheld though! I friend in a similar situation got £2.5k so I hope to get similar.

My complaint was upheld due to a lack of records, my policy was taken out with Provident Mutual, taken over by GA then Norwich Union.

It costs little to compalin so give it a go!

MSE_Martin

This thread has been closed so it can merge into the other main discussion thread...

http://forums.moneysavingexpert.com/showthread.html?t=140557

Martin