endowment mis-selling advice

scotte_2

I have recently complained to the IFA company I purchased my endowment from. When they sent me a letter to acknowledge my complaint they also sent me 2 questionnaires that they wanted me to complete and return to them (one about my mortgage history and one about my endowment and me personally). I have heard stories of people who have completed such forms and as a result negatively affected their claims. Based on this I decided to not complete their questionnaires.
I have now received an update letter from the IFA stating that they have not yet been able to complete their investigation, as I have not returned the completed forms.
Can anyone tell me if it is mandatory for me to complete their questionnaires?

Thanks.

scottishlizzie

It's not mandatory but if you do not fill them in they may make certain assumptions about your case which could be to your disadvantage (or advantage) - it all depends. For things that you really can't recall just state that is the case.

Compensationitis

Non-cooperation will leave a black mark and they could turn around and say the complaint is frivolous or vexatious.

If you tell the truth I can't see what you are worried about.

scotte_2

It’s not that I have anything to hide it’s just that I’m a bit suspicious about the whole thing. For example friends of mine who have since changed their mortgage to a repayment mortgage (on the request of their IFA) did not receive any compensation, as they no longer relied on their endowment to pay off their mortgage. I have not done this and I DO still rely on my endowment to pay off my mortgage but the questionnaire is asking me all sort of questions about my pension etc. I just don’t see what this has to do with me being missold my policy.

dunstonh

The questions back up your comments about it being mis-sold. They can work against you though. Say you put down that you dont have any risk tolerance but then it turns up that you have equity ISAs, shares, pensions in equity funds, it would be clear that you were telling lies. If you do not have any of these and your savings are all deposit based, then it supports your claim.

You mention your friends and what their IFA did as if it was a bad thing. Indeed, it was probably a good thing. Had more IFAs caught on to this earlier, then things would have been a lot better for all concerned.

At the end of the day, you are going to claim a number of things which may or may not happened. These questions are there to verify your side of the story. They may also show you are not telling the truth. In addition, the other side are going to look at what was disclosed and recorded at the time as well. If you put nothing forward and the other side put all their information forward, chances are the evidence will support them and you will have nothing to counter it.

homersimpson_3

First of all there's a very helpful standard questionnaire (question with various options you click in) on https://www.switchwithwhich.co.uk which results in a standard produced letter which you send to the bank asking for copy of mortgage file. Whilst you seem to already have contacted the IFA company the letter/questionnaire could be used for wording for grounds of complaint (e.g. mortgage advisor did not assess my attitude to risk etc). Did they explain difference between repayment and interest only mortgage? Did they tell you endownment may not reach target figure & you are effectively investing in shares etc -no garauntees? etc. Did they discuss how you would repay mortgage if endownment did not reach target amount etc.
The mortgage company/bank/building society will have retained copy of mortgage application which contains a statement of discussion which took place between you and mortgage advisor. Suggest you obtain copy.
A couple of very important points. If you had savings at the time the mortgage/endownment was taken out this can affect your level of compensation. They ask about the pension because some people intended to use endownment as vehicle to repay mortgage but took mortgage out later in life. They now have a debt (because poor endownment performance) and no income to pay it because they've retired. Is the pension sufficient to pay mortgage- hence question? If you previously invested in endownments/shares etc prior to taking out this endownment then arguably you were familiar with the risks associated with these type of investments.
If they want details of mortgage these can be obtained from bank/building society which you can then use to fill in form. The bank/building society will provide information in format required by endowment company. Ring up bank and say I need....(and then just read off details from form sent to you by endownment company).... so bank effectively does the work for you.
There are lots of companies on web claiming no win/no fee but they want 30% of compensation so be careful and may be rogue. Suggest you contact a Financial Advisor regulated by the Financial Services Authority
(FSA) who specialise in this type of thing. The FSA will send a list if you ring them. The endownment crisis (for want of a better phrase) is an absolute minefield and you need to obtain proper advice to ensure your interests are protected.

defender_of_the_weak

A couple of observations.

If your friends complaint was turned down because she had already switched to a repayment, this is not necessarily the case. No longer using the policy in connection with a mortgage is not grounds for rejection. The complaint should still be reviewed and if mis-selling is ultimately found then the calculation of any loss would take place on the date she switched her mortgage. Without knowing the full facts I cannot offer any other clues, did she take the case to the Ombudsman or let it drop?

With regard to the comment 'claiming no/win no fee charging 30% and may be rogue' not every company charges at this rate, check any terms of business if you do decide to use someone. Was it not a regulated financial adviser that did this in the first place?

EdInvestor

If you have not done so, I suggest study of the Which site https://www.endowmentaction.co.uk where the basics of making a complaints are spelt out.This should help in knowing what's wanted on the questionnaire and why.

Re getting a copy of your file (under the Data Protection Act) I understand companies are refusing to do this now following a court case in which it was ruled they didn't have to provide the info if it was going to be used for a complaint against the company.

soniacatelan

I recently wrote to my bank, BArclays complaining about my 3 endowments policy and requested a copy of my records. They have just written back to me saying that the....."we do not believe that your current request falls within the access provisions of the Data Proctetion Act, sinde that would go far beyond the issues involved in your complaiint. Please note that this would not prevent you from making an application under the Data Proctetion Act in the future, when your complaint has been resolved.....". So, are they refusing to give me a copay now, can I appeal and insist that they provide me with a copy of my records now??
Pls helpf me

Compensationitis

The FSA say you have a right to see the file relating to your policies, tell the bank that you will refer them to the regulator if they don't play ball.

EdInvestor

Unfortunately it was the FSA which brought the case which has reduced investors' rights. Ironically it involved Barclays.

FSA v Durrant