Missold Endowment, is it true that I can still claim?

FifiP_2

Hi I've been approached by a company who tells me that I am likely to succeed in a reclaim despite having been previously turned down. My endowment ran from 1984 to 2009, it was sold with a projection of doubling my investment ie paying off the original loan and having a lump sum of at least equal value as profit. I was told that I didn't qualify for compensation as I would have been no better off with a repayment mortgage - I finished up with a slight shortfall on the mortgage.
This company is asking for a fee of £80 to retrieve my files from the insurer then 20% of compensation received which would be the promised profit plus interest.
My husband says it is a scam - is he right or is it worth a go?

ethank

Sounds like a scam to me. Any charge upfront is a worry. In Martin's own words 'you're far better doing it free with Endowmentaction and the Financial Ombudsman’s help.'

Check out the guide at http://www.moneysavingexpert.com/reclaim/endowments-miss-sold#howdoi

mrginge

It's a scam.
That'll be £50 please.

holly_hobby

It sounds from your comment ....

FifiP wrote: »

I was told that I didn't qualify for compensation as I would have been no better off with a repayment mortgage

That although this 1984 sale is pre-regulation (referred to as A day and which commenced in April 1988, the firm elected to investigate as per a regulated sale, and upheld your complaint, but found that you had suffered no financial loss between the 2 methods (which includes what you would have repaid off a repayment mge and the surrender value of the low cost endowment policy at the time of the redress calculation).

Setting that aside, the claims company whom have contacted you would have absolutely no idea if you had been mis-sold, also taking into account this is a pre A day sale, show their lack of knowledge in also encouraging you to submit a complaint based on loss of performance (which can not be compensated for) .

Secondly, at the firms discrection because it was a per A day sale, you have already had your complaint reviewed and upheld (which means it won't be reviewed again) ... and it should be noted that any "compensation" due is essentially just the difference in costings between the 2 methods, over the period you held an interest only mge & the endowment policy (& 8% compound interest), of which as you say your Firm have advised there was no difference, so therefore no compensation due ..... This would be exactly the same result even if this claims firm were involved at the time you initially submitted your complaint, as the industry redress calculation is consistent.

Sorry .... but there are no extra pennies to be had here ...

Hope this helps ....

Holly xx

dunstonh

've been approached by a company who tells me that I am likely to succeed in a reclaim despite having been previously turned down.

Claims company wasnt EMACs by any chance? (known dodgy company that does this)

You get one complaint attempt and after that you get 6 months to refer the case to the FOS if you disagree. After 6 months, the issue is closed. You cant go back later and try again.

I was told that I didn't qualify for compensation as I would have been no better off with a repayment mortgage - I finished up with a slight shortfall on the mortgage.

So, you actually won your complaint. However, it was found you were better off. So, nothing was payable. This is not an uncommon situation. Endowment mortgages were often around £10-£30pm cheaper than repayment mortgages. So, if you were say £25pm cheaper over 25 years then that equates to £7500. A shortfall of say £2000 still puts you £5500 better off.

What the firm have done is look at the balance you would be on if you had a repayment mortgage at that point and look at the balance you had with the interest only minus the surrender value of the endowment. In your case, the balance minus the surrender value gave you a better figure than the repayment mortgage balance. So, you were not worse off.

My husband says it is a scam - is he right or is it worth a go?

He is right. They make £80 out of you for the inevitable rejection because you already complained before. The cold calling salesperson only needs 10 people a day to make £800 a day. They probably keep half of it. Not a bad income for a cold calling scam.

sr4a

Is the company Barrington Brown by any chance cos the information they have given to you sounds exactly what BB said to me over the phone!!!!

magpiecottage

In theory, a complaint against a bank or building society could be made about a sale from 1986, when their ombudsman schemes commenced, or against an insurance company from 1980, when theirs began.

However, if they were not a member of their ombudsman scheme at the time of the sale then they do not need to do so.

Furthermore, advice was not regulated at the time so you are reliant on proving a misrepresentation. That is rather more difficult.