Help mis-sold endowment

giantrider

Apologies for the length of this post but I'm at a loss as to what to do next:

• In 1986 my partner and I decided that we would buy a house – baby arriving and we wanted to settle down!
• As endowment mortgages were popular at the time we took out an endowment policy in joint names with the intention of using the proceeds from the policy to pay off our mortgage when the policy matured.
• When we found a suitable property and approached a building society as a lender prepared provide us with the necessary mortgage.
• We were advised by the building society that our existing policy was not acceptable and we would need to take out another policy.
• At a meeting with the mortgage advisor we were told:

1. The building society recommended endowment rather than repayment mortgages.
2. Our existing policy would not be acceptable as the company’s investments did not perform as well as rival companies – the advisor even suggested that company was not regarded by people in the mortgage business as a "reputable" company.
3. The advisor assured me he had never come across a policy with a recommended company, taken out as part of an endowment mortgage, that had failed to provide sufficient money to repay any mortgage capital outstanding.
4. My partner commented that she was no longer working as she was expecting our baby and enquired about her responsibilities if I lost my job, we split up, etc. The advisor suggested I have the mortgage in my name only and the mortgage application was amended accordingly.
5. As the mortgage would now be in my name only the new endowment policy would be in my name only.

• In view of the mortgage advisors comments, as we had a limited income and as stated earlier we were expecting a baby we stopped paying premiums on the existing endowment policy.
• My partner died in 1988. As the new policy was in my name only there was no payment received as a result of her death.
• As I was not happy that the advice I was given at the time I took out the mortgage I had a meeting with the building society to try and come to some kind of arrangement regarding the mortgage. I was told nothing could be done to help.
• After reading an article (possible on money saving expert!) about mis-sold endowments I complained to the building society who accepted the advice I was given at the time we applied for the mortgage was not in our best interests and have offered to repay the premiums paid in respect of the original endowment policy (£120) plus the shortfall in the new policy.
• I had an "off the record" telephone conversation with the building society complaints advisor who suggested I contact the Financial Ombudsman because in her opinion as a qualified financial advisor the mortgage application had been dealt with in an unproffessional manner and the compensation payment was being restricted due to a decision by the building society policy office.
• I complained to the Financial Ombudsman who confirmed they would deal with my complaint.
• The building society have now objected to the Ombudsman dealing with the complaint because of the time that has elapsed since I made a "formal" complaint.
• The Ombudsman has advised me that as there is no record of my the meeting held following my partners death they are now unable to deal with my complaint.

Does anyone have any suggestions as to what I can do next?

Thanks in advance for any help/ suggestions.

hedgehunter_2

People on this site are generally willing to help the posters, but all I can hear is alarm bells with this question.

You need to be a bit more forthcoming with dates of of the events you describe.

Please also state on what basis you accepted compensation from the building society. If it was in full and final settlement of your complaint there is probably little else you can do.

dunstonh

The building society have now objected to the Ombudsman dealing with the complaint because of the time that has elapsed since I made a "formal" complaint.

There is your problem. Once that 6 month period has passed, its case closed and you cannot pursue it further unless you have new evidence to support your case or a damned good reason for the FOS to overule. That typically means being in hospital. They do not re-open complaints very often.

giantrider

Thanks for the replies.

Sorry, I must not have been very clear in my original post - I have not accepted any offers.

After the building society collected the information regarding my complaint I received a phone call from the person dealing with my complaint at the building society stating the compensation offer (based on the shortfall in the replacement policy and the payments made in respect of the original policy) was, in her opinion, less than what it should be because it did not take into account:

1. There was no reason why the original endowment policy would not be acceptable to the building society, and it was suited to our circumstances.
2. The advice about having the mortgage and endowment policy in my name only was not in our best interests.

She suggested I contact the FO because the compensation offer should reflect the position I should have been in if we had kept the original endowment policy.

The building society say they do not have any evidence that the meeting following my partners death actually took place so, because of the time that has elapsed the FO is not able to deal with the complaint. Unfortunately the FO has confirmed they will not deal with the matter (though I have asked them to reconsider their decision).

So I'm at a loss as to what to do next.

Hope this makes more sense.

EdInvestor

I think you will have to accept the BS offer - especially as they are not required to give you anything at all, as the whole matter took place pre regulation and the Ombudsman has no jurisdiuction.

giantrider

Apologies for the delay in replying - PC problems!

Thanks for the responses. I'm currently waiting for a response from the FO regarding some queries concerning the way the compensation has been calculated but I guess I'll have to give the offer some serious consideration.

Thanks again