Another Endowment Question.........

Towner_2

Thirteen years ago I was sold an endowment policy by an employee working for an estate agent. I made a complaint, like thousands of others and received redress. My question is how does my making a claim affect the person who sold me it now that they have set up on their own as a mortgage/financial advisor??

EdInvestor

It shouldn't affect him at all as an individual case. The level of his liability insurance cost would possibly be affected by the total number of endowment complaints he had received if there were a lot, but that's all.

Towner_2

Thanks Edinvestor, it was a family (not blood) member who sold me the policy. They are now telling other family members that my complaint could have lost him his business/house etc!! Thought it sounded a bit drastic. The family feud continues...........!!

Towner_2

Hi Edinvestor, sorry me again!!!
I am now being told by another party that they were told by the individual who sold me the endowment that as a result of my claim for redress, the person who sold me the endowment would be individually investigated by NU and possibly NU would not deal with them!! Can this happen by just my compensation for redress as surely my case is with the NU and not with the individual???

ChrissyR_2

I'd look at it in 2 ways. He either:

Mis-sold many of these and so your one is unlikely to be the sole cause

or

He only ever mis-sold one and chose one of his family members to do it to!



Myself I'd go with the first one but he doesn't know all the other people so is picking on you.

dunstonh

Towner wrote: »

Thanks Edinvestor, it was a family (not blood) member who sold me the policy. They are now telling other family members that my complaint could have lost him his business/house etc!! Thought it sounded a bit drastic. The family feud continues...........!!

Not wanting to pick sides or make judgements but he could be correct.

If he owned the company giving the advice, then he would be liable for the excess in any upheld complaint that results in redress. A few years ago excess' were up at around £4500 per case although as the endowment issue is coming to an end they have fallen back to around £2500.

So, if he has had a number of upheld complaints, then he could have had to pay out £4500 on each one out of his own pocket. If he has had a lot then that will teach him to give bad advice. Nothing teaches people to do things right more than hitting in the pocket. Its just a shame that all advisers are not financially liable for their advice. I bet things would be a lot better for consumers if they were.

EdInvestor

Towner

Have you noticed how many people were missold endowments?

It's in the millions. NU is the provider in many cases, as it's a big player in the market.If NU refused to deal with any advisor who had earlier missold one of its policies, its businerss would collapse as it would have no salesmen any more.

Can this happen by just my compensation for redress as surely my case is with the NU and not with the individual???

If the estate agent was acting as a tied agent for the provider (NU) then the advsior would not have been liable in any way for payment of any redress.

Someone is trying to make you feel guilty.I wonder why?

Ignore all this, it is just nonsense.

Towner_2

Thanks for the replies guys, much appreciated. There were issues before this and this was another issue that has made things even worse. Was quite worried that I may have been responsible for loss of house or business, but looks like someones stretching the truth. Is it possible though that NU would no longer deal with them??

dunstonh

Is it possible though that NU would no longer deal with them??

It sounds like he isnt a Norwich Union rep so NU would have no reason to stop dealing with him as they are not liable for his actions. He would be. Cancelling of agencies doesn't happen often. When it does it is usually combined with FSA action.

Was quite worried that I may have been responsible for loss of house or business, but looks like someones stretching the truth.

As I said, its quite possible that he is correct. As an "independent" IFA I would have to pay out £2500 (was £4500) on any upheld complaint. Plus £400 on every FOS complaint. So, if he is in the same position, then he could be telling the truth.

If he was a tied agent at the time of the sale, then he would have no liability for the complaints and as he is no longer a representative of NU, there is little that they can do against him unless he has been found to have acted in a fraudulent manner. Some tied reps do carry the liability for advice but they are not common.

If you want to PM me his details, I can take a peek at the FSA register and from there you can get a fairly decent idea of who is and who isn't financially liable for their advice.

Towner_2

Hi DunstonH, when my complaint was upheld it was not because of me being misold the endowment, the compensation was awarded to balance out the difference between me taking out a repayment mortgage instead of an endowment. Would this still affect them??
Sorry to go on about this but just want to be 100% sure as its quite sensitive!!!

jamesd

Towner, you are only entitled to that redress for the difference between endowment and repayment less insurance if you were mis-sold the policy.

If you were aware that endowments were market-linked investments that could go up or down and didn't have guarantees then you probably wouldn't have been subject to mis-selling and shouldn't really have claimed that you were.

If he knows that you were aware, but can't prove it, he could be in the position of believing that you lied about claiming to be mis-sold but having to have his employer or possibly him pay up anyway.