Endowment misselling and advice

barneybeagle

Apologies if I am on the wrong board. If so then please redirect me. Otherwise any advice would be appreciated.

I've followed over the years the misselling of Endownments campaign, but thought I could not claim as the Independent Broker I went through for ALL of my endowments, etc does not exist any longer, but maybe I am wrong.

Is it possible to claim and if so how?

What happens to the former Independent Brokers 'royalty' payments, as I presume they still get paid something or am I wrong?

I had a mortgage endowment out for about 17 years or so with Standard Life which I cashed in early as it was never going to make what it initially promised.

I also had Scottish Widows, Scottish Life and possibly one or two other endowments, which I also cashed in.

Apologies as I'm sure this kind of thing has been brought up before.

All advice much appreciated.
Thankyou
bb

PeacefulWaters

You could have claimed via the FSCS. You're probably time out now.

Your post doesn't give a single reason as to why you would have a mis-selling claim though.

dunstonh

I've followed over the years the misselling of Endownments campaign, but thought I could not claim as the Independent Broker I went through for ALL of my endowments, etc does not exist any longer, but maybe I am wrong.

You could still have complained. However, statistically, most for independents were rejected.

Is it possible to claim and if so how?

If you are not timebarred (most endowments are) then you complain to the FSCS. However, if you are timebarred , do not bother. You get three years from first being notified of a high risk of a shortfall. Most of those notifications went out in the early 2000s and by 2008/2009, most became timebarred. There were some late ones though.

What happens to the former Independent Brokers 'royalty' payments, as I presume they still get paid something or am I wrong?

The pennies each month are paid to the servicing agent if one. If none, then they are retained by the insurer.

I had a mortgage endowment out for about 17 years or so with Standard Life which I cashed in early as it was never going to make what it initially promised.

I also had Scottish Widows, Scottish Life and possibly one or two other endowments, which I also cashed in.

So, are these endowments running that you wish to complain about or are they all gone? Again, the three year time bar is possible if you surrendered them for the reasons you say.

barneybeagle

Hi all,

Thanks for all of your replies. All of the endownments I speak about have been cashed in around 2006-2007.

The big one I had with Standard Life was on our Mortgage. I wanted a repayment originally, but was persuaded that I would be better off with an endownment, hence in todays language misselling!

Sounds like I cannot claim so I'll leave it at that.

Cheers for your advice.

Regards
bb

dunstonh

The big one I had with Standard Life was on our Mortgage. I wanted a repayment originally, but was persuaded that I would be better off with an endownment, hence in todays language misselling!

That does not make it mis-sold. Persuasion to use a different method is allowed as long as it is suitable. A shortfall doesnt make it mis-sold either. Indeed, many people have seen shortfall projections and still paid out a surplus. Also, endowments were typically cheaper on a monthly basis than repayment mortgages (a common reason for taking them out). A £20pm difference over a 25 year term is £6000. So, if that endowment finished off with a £5000 shortfall, it would still have been £1000 better than repayment basis.

The consumer Association were pro endowments. The media were pro endowment. Had this site existed back then, they would have an endowments best buy section.

Froggitt

dunstonh wrote: »

The consumer Association were pro endowments. The media were pro endowment. Had this site existed back then, they would have an endowments best buy section.

Depends when you mean. When we moved in 1997, I am sure the tide had turned against endowments by then, hence taking out a monthly ISA. However in 1987, when I took our my first mortgage, I am sure you would have been correct.

dunstonh

around 1995ish is when the tide started to turn. unit linked plans at that point could use target growth rates lower than 4%. However, it was largely too little too late by then and too many used 7% or higher.