endowment miss sold 1986 Help pls

Grahampoor

Hi there i hope im doing this right ?!
I would like to ask what, if anything we can do about an endowment that was signed in 1986 before the FSA umbrella started ,that was signed up by a company called peter rainbow .We have contacted the company (now under another name)about being miss sold and they say that they will do nothing ,and that all we can do is go after the guy that sold it to us ,as they used an independant FA at that time . because of the year i believe that the FSA & the ombudsman wont get involved ? Is there any hope for me ?

EdInvestor

Who is the provider of the endowment? Suggest you ring them up and ask who to complain to - it might be them.

Grahampoor

Cheers will ask & come back to you :-}

dunstonh

If it was sold by an IFA before 29th April 1988, then you may as well give up now. There is no requirement for them to look at cases sold before regulation came in.

terrierlady

my brother had an endowment which was brought in 1989 today he received an offer for just over £7,000 Thanks to Martin and all the other people on here for helping , the bit that puzzled me was the letter gives a figure of some £13,652.00 suffered loss so how do they arrive at £7,000?
His mortgage was for £47,000 which only has a couple of months to run, he has had to work on past retirement to pay the mortgage and still maybe short at repayment time is there any point in asking for re think on compensation

dunstonh

terrierlady wrote: »

my brother had an endowment which was brought in 1989 today he received an offer for just over £7,000 Thanks to Martin and all the other people on here for helping , the bit that puzzled me was the letter gives a figure of some £13,652.00 suffered loss so how do they arrive at £7,000?

The calculation looks at the cost of repayment mortgage and endowment mortgage and where he would be now had he been on a repayment mortgage.

Endowment mortgages were typically the cheaper mortgage (in reality, that was the most common reason people did them). So, the fact he is likely to have paid less than a repayment mortgage is usually taken into account. Then you have the surrender value of the endowment. That is also taken into account. Whatever than is the difference between the amount he would be on repayment mortgage at this point is the amount of redress payable.

His mortgage was for £47,000 which only has a couple of months to run, he has had to work on past retirement to pay the mortgage and still maybe short at repayment time is there any point in asking for re think on compensation

The calculation method is defined so its only worth asking for a recalcuation if the figures input appear to be wrong. There is also a risk that the redress would be reduced if the surrender value has increased (markets are currently up on a few weeks ago, so good chance that could happen).

How old is your brother? If he is under 65, the "past retirement" issue is unlikely to wash unless he can prove all his retirement provision was built to pay out earlier and he could afford to do so. Plus, could he afford the increased mortgage payments that would have been the case with a shorter term? Many people used to take out mortgages to go past retirement with the view that they would pay it off early as the mortgage would not be so much in real terms because of inflation. That was often the case in the old high inflation days but in these days of low inflation that hasnt happened.

terrierlady

he is 68 took out endowment because he was self employed and had been since he was 20 so he had over 30 years accounts but the company that arranged the mortgage said it was the only way due to his age and perhaps thats why it went over retirement age he didnt know it was endowment until he came to sign the documents, ie endowment,seems impossible now a days, shows how much sites like this have helped people understand things.

petermb_2

Hi all, I am working on a possible angle that may help in these cases. I will come back if my theory proves correct. I will test a few cases out first. I have a case that is about to go into the legal process. Will keep you informed.

regards

Peter