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

dunstonh

Again, not taking any sides, but a lot of people were aware endowments had a risk but went with them as they were cheaper than repayment mortgages or because they relied on past performance that they had always paid surpluses. The claims redress method the FSA used for endowments has allowed a lot of abuse by people that really shouldnt be claiming. In effect, people have been able to claim knowing full well that it isnt going to cost them one way or the other regardless of the outcome.

This was compounded by some rogue claims companies who have saturated a number of companies with the same template letter for everyone they deal with regardless of whether the issue applies to them or not (i.e. endowment going past endowment when it really finishes at age 45 or would never take investment risk despite them having shares and ISAs).

So, if he has had a few complaints come in and had to pay out on those himself yet he feels they are unjustified, it could make him feel bitter. If was liable for the redress, then where do you think the money came from that paid you? Up to his excess, it would have been out of his pocket.

If he wasnt liable for the advice (such as being a tied agent at the time but not now) then it wouldnt have cost him a penny and he probably wouldnt even be made aware of it. If he was made aware of it, then it could be that he does have liability.

EdInvestor

dunstonh wrote: »

Again, not taking any sides, but a lot of people were aware endowments had a risk but went with them as they were cheaper than repayment mortgages or because they relied on past performance that they had always paid surpluses.

Most people I've come across thought that any risk involved only affected the extra cash surplus. They were quite unaware that there was any risk that the mortgage wouldn't be repaid - and would not have signed up for the endowment if they had been made aware of this risk.

Anyone in that situation was missold and should be paid redress if they made a loss.There's really no point in this salesman trying to blame someone he's missold.

So, if he has had a few complaints come in and had to pay out on those himself yet he feels they are unjustified, it could make him feel bitter. If was liable for the redress, then where do you think the money came from that paid you? Up to his excess, it would have been out of his pocket.

Strangely enough, there appear to be no advisors on the planet who think that it is fair or justified that people missold should be compensated.

This is probably because the financial services industry has such a long record of successfully cheating the mug punter - it has become ingrained.Now that the worm is turning, with complaints about endowments and bank charges, they are outraged.

I find it particularly distasteful that an advisor is now trying to blame and criticise a family member to whom (you would have thought) he owed a higher duty of care than to an ordinary member of the public.

Readers are advised to bear this in mind as it is not uncommon on this site to hear that products were missold by "related" advisors.

dunstonh

Most people I've come across thought that any risk involved only affected the extra cash surplus. They were quite unaware that there was any risk that the mortgage wouldn't be repaid - and would not have signed up for the endowment if they had been made aware of this risk.

Most people believe that property only goes up in value but that hasn't stopped people speculating on it by us.

There's really no point in this salesman trying to blame someone he's missold.ing buy to let.

Most endowments were not mis-sold given the rules in place at the time. Most endowment redress payments are not paid out due to mis-sales but due to insufficient documentation to show that it wasn't mis-sold.

Strangely enough, there appear to be no advisors on the planet who think that it is fair or justified that people missold should be compensated.

Don't talk rubbish. Justified complaints should be dealt with fairly. However, the bandwagon of endowment complaints has shown that the system is open to abuse by those that see endowment complaints as a no lose situation where they can tell all sorts of porkies to get a redress payment. Unfortunately, it is those individuals that have made it harder for genuine complaints, especially where general template letters are used.

Towner_2

Thanks EdInvestor and DunstonH for your informative replies. Sorry for the delay in replying but I have been unable to get on to the forums.